It’s no secret if you follow any of the local Real estate news that our Spokane real estate market is hot! Homes are selling for above asking price in most cases and some homes are receiving up to ten or more offers within days of their home going live on the market!
This can all be extremely exciting in many ways, especially as a seller. There is little risk of not selling your home in this inventory constrained market providing your home is priced correctly and marketed by a professional.
While this is exciting as a seller, there is a TON of pressure that is placed on the buyer in a market like we are seeing. For this reason, a buyer can begin to feel like they need to sacrifice some of their “wants and needs” to broaden the selection they have to choose from.
Sometimes this has to happen if what a buyer is looking for is just unrealistic. But sometimes like we are seeing in this market it creates a situation where lots of buyers are backing out of their accepted contracts. We are seeing about a 20-30% buyer back-out rate here in Spokane for the past several months now.
So, I want to share a great strategy that you can take as a seller to protect your home from those dreaded words….”Back On Market” this can be devastating for a seller to hear these words, and statistically could mean a three to five percent less net profit to you, the seller.
As a seller, if you have a willing buyer, you can place them into a “Back up offer” position. If you received multiple offers upon listing your home and come to a mutually agreed contract with the highest and best offer, you can offer to place the next best offer into Back up. This means that should the first buyer decide to back out for any reason, the contract that was placed into the “Back up” position slides right into first position and you are under contract again without EVER having to go “Back on Market”!
This is a smart way as a seller to protect yourself, especially when there is low inventory and buyer’s feeling the stress that they are to hurry up and pick a home. With a 20-30% buyer back out rate, I advise all of my sellers to consider this option.
Now, if you didn’t receive multiple offers, but did accept one, I suggest you still allow other interested buyers to view your home. Especially when you are still within the inspection period and appraisal period. There are still many reasons that a deal could potentially fall apart. So, if a new buyer knows you already accepted an offer, but would consider writing a back-up offer, go ahead and let them see your house!
I hope you find this tip helpful, and as always please reach out for any other tips and advice from me! I love talking about our awesome industry!
Sara Koenig | Spokane Realtor
Haven Real Estate Group