Instant Buyer’s Remorse
Being a child of the eighties, I can hear the Asia song, “Heat of the Moment” in my head as I put this post together. In the excitement of getting an offer together in a competitive, multiple offer situation, many Bristow and Gainesville buyers are being swept into making offers that have them rethinking what they offered in the first place if they happen to be the chosen one. It happens. The need to be the winning bid gets adrenaline going and in that frenzy, an offer is made that may not sit well with the winning bidder when all is said and done.
Just the other day, when making the call to the agent representing the chosen offer out of twenty-six on my latest Gainesville listing, I had a bit of a feeling things were going to go sideways when we discussed the fact that his buyer’s offer got escalated to its max. A little bit of double talk about what he felt his buyers should be escalated against (offers waiving every contingency like his buyer did) vs. what the escalation clause actually said which was “offers acceptable to the seller.” The hairs on the back of my neck stood straight up. This agent had set an expectation to the buyer that he didn’t necessarily escalate against every offer the seller received. Uh-oh. Second thoughts prevailed and even though this buyer had really wanted the home and it turned out, was paying no more than he wrote that he was willing to pay, he withdrew his offer upon winning.
Buyer’s remorse is as real in this market as lack of inventory. Just because you didn’t win the first go round, you may still get the chance to be the chosen one. In fact, as my sellers were going to their second choice offer this morning, I had buyers being given a second chance on a listing they missed out on because their first choice of buyer had back out.
Being a ratified back up offer in this market is the only way you absolutely know you will be the next in line if the first offer blows up. If a listing agent reaches out and offers you that chance, go for it. Doesn’t tie you up. If you find another home in the meantime, all you have to do is send notice that you are voiding the back up offer. It’s a strong position to be in when people are getting caught up in the moment and writing offers higher than they intend to stand behind, just to win the home.
And of course, this post would not be complete without mentioning that just because you get to be the chosen one, doesn’t mean you get to renegotiate with the seller when you have been ratified. They will move on to the next buyer, because right behind you are all the other buyers that still want the home. If you do write an offer, it should be for no more than you intend to pay and for terms you are willing to stand behind.
That’s my soapbox moment for today.
Chris Ann Cleland
VA License #0225089470
Long & Foster Real Estate
Call or Text: 703-402-0037
The opinions expressed in this blog are those of Chris Ann Cleland, not Long & Foster.