Here’s an interesting stat from April’s RMLS Market Action: there were more closed sales in April of 2007 (2598) than there were in April of 2006 (2558). Properties are moving. Yesterday, we lost out on a multiple offer situation at full price. After looking at about ten properties, one was clearly the favorite. It was listed at the beginning of May and the first accepted offer failed (apparently when the buyer got cold feet). Back on the market, our offer was competing with someone who had missed out when the first offer was accepted. The seller chose that offer simply based on the fact that they had been interested in the property longer than we had. We were told the offers were almost identical (after the fact). That happens.
Part of the discussion we had was, “what price to offer when we think there is a competing offer?” If we have comped the property out and see that it is fairly priced, you have to ask yourself, “will I be upset if I lose this property to someone else for X dollars?” In this case, the conversation was over $5000. At 7% interest the difference in payment is roughly a dollar a day. Analytically $5000 is a good chunk of change to most people. Emotionally, it was decided that it was a small price to pay for what we thought would be the stronger offer.