Market Wise - Sunday, November 12, 2017
By Pat Kapowich for The Bay Area News Group
Q: We had multiple offers on the sale of our home last night. The listing agent we hired insisted we ignore the cash offer and choose one of the other buyers who had pre-approved loans. We woke up this morning thinking we made a mistake. Our agent was adamant not to counter-offer the cash buyer. Our agent is a little overbearing and did not give much of an explanation other than to roll her eyes when we twice suggested countering the cash offer. What is her problem?
A: Only in the Bay Area, or especially in Silicon Valley, will the thought of a homebuyer with cash create an eye-rolling event. It all started during The Great Recession. So-called cash buyers would win the day with an as-is purchase offer in a multiple-offer situation. Then, once the competing homebuyers went away, the cash buyer (a) does not put a deposit in escrow (b) starts to renegotiate or (a) and (b). During The Great Recovery, many cash buyers would pull the same stunt but sometimes with a twist: they would walk, with or without an earnest money deposit in the escrow account.
Lest we forget, the marketing and negotiations of a new listing is a lightening-in-a-bottle event that is not repeatable. So much so, that when a pending sale falls apart, the property is no longer considered noteworthy, it is deemed suspect. Unacceptable property defects previously unknown to all parties can force the rescission of a pending sale. That's perfectly understandable. But, so-called cash buyers accidentally or purposely orchestrating the stigmatization of sellers' properties via shady business practices deserved scorn. To top it off, many cash buyers think they have rights to a discount, ignore the deadlines, and make up their own rules.
Your listing agent used both sides of her brain during negotiations. No, "your" cash buyer didn't get away. Your agent set him loose, and, rightly so.
Buying or selling real estate? Realtor® Pat Kapowich provides turnkey services including Relocation, Staging, Market Analysis, and Strategic Planning. (408) 245-7700 or Pat@SiliconValleyBroker.com
Sunday, November 12, 2017
Bay Area News Group COverage
Pat’s Market Wise real estate Q&A advice column runs in the Pulitzer Prize Winning San Jose Mercury News on the first, and third Sunday. Look for it in a Bay Area News Group newspaper near you.
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