Why Some Potential Purchasers Fail to Cross the Finish Line
As most people have probably heard, one of the most stressful things in life to deal with is a sale of your own home and one of the greatest causes of vendor stress in the sale process is an offer falling through before contracts have become unconditional.
There are many reasons why potential purchasers fail to cross the finish line, but experienced agents are more skilled at detecting and eliminating high-risk offers. While agents are bound to submit offers presented, experienced agents minimise vendor disappointment and loss of marketing time by advising clients not to accept offers they know are unlikely to proceed
Sometimes offers are made by intending buyers who have not yet placed their property on the market for sale and who need the finance from the sale of that property before they can complete their next real estate purchase. Some buyers in this category are most often just beginning to assess the market. They have found a house they really like almost at once and before they are ready to act. Often they have not done enough homework to know market values and their offers are not based on a genuine understanding of the current market. Some continue to look around while waiting for their own home to sell, even though they have agreed in principle to buy another property. Such purchasers are not deliberately trying to deceive or inconvenience property sellers when they pull out of a sale -they were simply too inexperienced and eager when they made their offer. Some purchasers offer to get bridging finance so they can proceed immediately; however, vendors should realise that in most (not all of course!) cases, the cost of bridging finance and the “what if” factor of not knowing what their own home will ultimately sell for, end up working against the sale.
Since professional real estate agents will advise against taking a property off the market upon the receipt of offers from unqualified purchasers, no loss of time of money is incurred. The harm done by uninformed purchasers who retract high offers is more insidious. Often the offers made by purchasers who have not really researched the market are higher than the property’s ultimate market value; in other words, the price is above what the vendor can realistically expect to achieve. Unfortunately, the effect on the vendor’s expectation is lasting. Most vendors continue to measure all subsequent offers against the high one, even though it fell through.
In the anxiety of undertaking what for most people is their biggest ever financial transaction, it is easy for vendors to forget that no mere offer in itself actually represents market value, let alone a firm sale price -until a qualified purchaser backs it up with cash.
If you are thinking of selling or moving, please contact me on the numbers below or via my website www.steveslicker.com.
0275 661 949