Let's clarify that I am speaking about REO & Short Sale listings since that is the primary situation in which we encounter the call for Highest & Best Offer in a multiple offer situation in todays real estate market.
To a REALTOR, this is nothing new, unexpected, or all that confusing.
To a buyer, it seems, that this spins them off their previously stable axis. How do you explain to your buyer that there are competing offers on their CHOICE PROPERTY and you, their trusted representative, have no idea what those competing offers entail?
Buyers seem to be mystified by the idea that I am unable to find out the prices, terms, or even the number of competing offers. They cannot understand the concept that they may have to offer well over the "advertised" price for the property to have a chance of getting their offer accepted by the bank holding the property.
And how can it be that the offer with the HIGHEST PRICE might not be considered to be the BEST OFFER?
So, here is a list of information to try to explain this to the confused buyer:
1. Just like every home is different, EVERY SELLER IS DIFFERENT. That includes banks & asset managers. Negotiations proceed differently with different personalities, different times of the month, different times of the year. These are variables which are in play on every transaction.
2. The Highest Offer is NOT ALWAYS the Best Offer. Every seller takes into consideration all of the terms of the offer. Not just price. Contingencies can break the deal. Financing, inspections, appraisals, homes to sell, approval of the property by a third party, etc. There is virtually no way to anticipate how these variables can be mixed together to arrive at a decision on The Best Offer.
3. Ford Made 500,000 Expeditions (this is a hypothetical number, corrections are not necessary), but This is ONLY ONE HOUSE. You would not get into a bidding war over a new car, because in most cases Supply far exceeds Demand on any given day. Bob's Ford sells out on that Green Expedition you had your eye on. NO BIG DEAL. Just head across town to Jim's Ford and get an identical one from him for the same price. But this 1 house, on this 1 lot, in this 1 subdivision, on this 1 lake IS SPECIAL. Try not to make comparisons between other market segments and real estate. There is a difference.
4. You arrive at YOUR HIGHEST & BEST OFFER by considering your own desire for the property and your own financial situation. You have no control over the motivations or veracity of any other party. It is pointless to consider them. This is very important when dealing with REOs and Short Sales as the banks involved have no emotional attachment to the property. Likely, they have only seen it in a photograph or described in a BPO or appraisal.
5. What is best for you is to know your limits. Whether you are purchasing a property as an investment, or because you love it ("Investors" are not investors if they must LOVE IT to BUY IT!) your highest & best offer, is the price at which you say to your self "I will not pay ONE MORE PENNY than XXX".
If you are a buyer seeking guidance in purchasing a bank-owned property or a short sale, please contact me for assistance.
Visit my website to start your home search at www.DixonRealtyAdvisors.com
Jenna Dixon
Associate Broker
Dixon Realty Advisors
Parke Avenue Realty
770-374-4230
www.DixonRealtyAdvisors.com
Tuesday, March 30, 2010
Dixon Realty Advisors Atlanta Flat Fee Listing Service Is NOT A FSBO!
In response to the changing real estate market, Dixon Realty Advisors has adopted an Atlanta Flat Fee Listing Service for homeowners that allows our clients to Save Thousands (or tens of thousands) of Dollars in Real Estate Commissions.
We think of the program as an EQUITY PROTECTION mechanism for Metro Atlanta homeowners.
In our Atlanta Flat Fee Listing Service arrangement, our fee is set up-front as a one-time charge for marketing your home.
This gives you the flexibility to choose a commission for the cooperating buyers' agent that is comfortable for you, the choice is yours. This flexability allows you to position the selling commission at a higher rate as an incentive, attracting more agents to your home or to offer to pay for closing costs, repairs or other buyer incentives.
The only other fee is paid to the MLS service at closing at a rate of .0012 of the sales price. THAT'S IT!
Unlike most Atlanta Flat Fee Listing Service programs offered by other brokerages, Our Atlanta Flat Fee Listing Service Program DOES NOT Mirror a For Sale By Owner with MLS benefits.
You do not make your own fliers, you do not take your own pictures, you do not advertise the property yourself & YOU DO HAVE A PROFESSIONAL REAL ESTATE AGENT REPRESENTING YOUR INTERESTS!
There are No Hidden Charges For "Add-On" Services such as virtual tours, lockbox rentals, signage, additional photos, or hosting open houses.
We provide every listing with a Full-Time PROFESSIONAL to service and market your home at a drastically reduced cost.
Call us today to get started!
Jenna Dixon
Associate Broker
Dixon Realty Advisors
Parke Avenue Realty
770-374-4230
New Construction in South Forsyth UNDER $300K-Majors Mill Crossing
I found this wonderful neighborhood last Fall when I had the pleasure of helping my brother find a new home. His requirements were very specific and I was a little concerned that we would not be able to find everything he was looking for in his price range.
And then, I discovered Majors Mill Crossing in Cumming, Georgia. The homes offered a wonderful value with all of the charming Craftsman details we were searching for!
The homes have wonderfully detailed elevations, thoughtful architectural details throughout, and are situated on a manageable lot that includes a complete maintenance package through the homeowners' association. The community also has a nice amenities package, including a sparkling pool!
Majors Mill Crossing is located just off Ga. 400 at exit 13. Here you can take full advantage of everything that Peachtree Parkway in South Forsyth County has to offer without sacrificing a long commute back to the freeway.
The Avenues of Forsyth Shopping Center is just moments away and includes wonderful restaurants & a movie theater.
Lowe Properties & Homes By Brumby are still actively building in this NEARLY COMPLETE neighborhood. On our transaction, we worked with Lowe Properties & they were wonderful, very helpful & responsive.
If you are searching for A HOME IN SOUTH FORSYTH COUNTY, contact me today for more information about this community and many others in the area.
If you have a home to sell, be sure to check out our ATLANTA FLAT FEE LISTING SERVICE that will help you save when it's time to sell.
Jenna Dixon
Associate Broker
Dixon Realty Advisors
Parke Avenue Realty
770-374-4230
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