How to Optimize Your Success in a Multiple Offer Situation

How are today’s buyers and sellers approaching multiple offer situations, and which approach is the most effective? Let’s discuss some common tactics.

Want to sell your Kansas City Home? Get a home value report here 

Want to buy a Kansas City home? Search all homes for sale here

Whenever a market is swayed to considerably favor either buyers or sellers, multiple offer situations tend to become more common. And when a listing meets certain additional criteria, like being aggressively priced, the likelihood that it will receive a high level of interest becomes even stronger.

With this in mind, what’s the best way for buyers to tackle such situations and what kinds of offers should sellers prioritize?

Back during the recession, sellers would choose a buyer based on which offer was “highest and best.” They would often also impose a deadline for a given offer, which put a lot of pressure on those looking to purchase the home. Having an expert advisor to guide you through scenarios like this was extremely valuable during that time and is actually still valuable today.

Although seller expectations have changed since the recession, most people who have listed their homes still hope to earn the best deal possible.

One common way today’s buyers navigate multiple offer situations is by including an escalation clause in the offer. An escalation clause allows buyers to surpass competing offers up to a certain dollar amount. This allows buyers who find themselves in a bidding war to retain the upper hand (within a particular threshold). 

“

Carefully reviewing all offers with the help of a real estate professional is the most effective way for sellers to achieve optimal price, terms, and conditions.

”

Sellers should also realize that price isn’t everything. Selecting the offer that is highest and best is not the best way to maximize equity. Independently negotiating with each buyer is a far better approach. Carefully reviewing all offers with the help of a real estate professional is the most effective way for sellers to achieve optimal price, terms, and conditions.

If you have any other questions or would like more information, feel free to give me a call or send me an email. I look forward to hearing from you soon.

Why an Auction May Be Your Best Bet to Sell a Unique Property

Selling a unique property isn’t the same as selling a conventional property, which is why an auction is a great way to sell them.

Want to sell your Kansas City Home? Get a home value report here 

Want to buy a Kansas City home? Search all homes for sale here

Over the years, I’ve been fortunate enough to have been involved in a lot of sales of unique properties. What’s the best way to sell a unique property, though?

First, you should know that every property will sell, but there are four main components of that sale that have to be dialed in:

• Location: Location is crucial to maximizing the value of a property.
• Condition: If a property is in good condition, it will sell.
• Marketing: A property has to be exposed to the total buyer pool who might be interested in it.
• Price: A home has to be priced correctly for what it is, where it is, and what condition it’s in.

That being said, one selling method that I’ve always found works extremely well with a unique property is an auction. This is because an auction brings together all the competing buyers in one place and bids the property’s price up to what the market says it’s worth.

“

An auction brings together all the competing buyers in one place and bids the property’s price up to what the market says it’s worth.

”

Think of it this way: If you inherited a rare, prized piece of art, you’d never think of putting a price tag on it and seeing if a buyer comes along to buy it. We sell a lot of conventional properties that way through normal marketing avenues, but not with unique properties. An auction isn’t the only way to sell a unique property, but it’s a way that can create maximum demand and maximum exposure in a time frame you can dictate.

If you’d rather sell a unique property through conventional marketing avenues, there are different strategies you need to take. Some of these strategies, for example, involve using social media platforms geared toward the type of buyers you want to attract.

If you have any more questions about selling unique properties or you have any other real estate needs I can assist you with, feel free to give me a call or shoot me an email. I’d be happy to help you.

Will These Home Improvements Improve Your Home’s Value?

There are certain home improvements that won’t add much, if any, value to your home. Here are four of them.

Want to sell your Kansas City Home? Get a home value report here 

Want to buy a Kansas City home? Search all homes for sale here

Today we’re beginning a two-part series that details seven things that do not increase the value of your home, whether you’re planning to sell soon or down the road. Here are the first few:

1. Extensive professional landscaping. If you go over the top with landscaping, you will typically not get a full return on your investment when you sell. A good landscaping update will give you more curb appeal and help your home sell faster when buyers are comparison shopping. However, it doesn’t necessarily increase its value.

2. Upgrading electrical or plumbing systems in an older home. Just like a car would, an older home needs maintenance. It’s an integral part of protecting your property. Make no mistake that if these are things your home needs, you should do them in order to maintain its current value. However, don’t expect the home’s value to increase because of them.

“

Stay tuned for part two, which will be coming in a few weeks.

”

3. New roof, gutters, sprinklers, or HVAC unit. These are also maintenance items like the plumbing and electrical systems. It will maintain the home’s value and buyers appreciate a home that is updated and well-maintained.

4. Swimming pools or hot tubs. I get questions about these from homeowners all the time. The truth is that appraisers won’t give you very much credit for it. If you want a pool and want to enjoy it, you should go for it. If it’s well-kept and maintained over the years, it can sell faster and attract a higher offer. However, it won’t increase the value by much.

Stay tuned for part two of the series when I will discuss the final three home improvements that do not provide value to your home. If you have any questions for me in the meantime about any of these items or about anything else related to real estate, give us a call or send us an email. We look forward to hearing from you soon.