A little over 27 years ago, developers negotiated with the city and RDA to develop the land and I-80 freeway exit in Sugar House. Part of the plan was to close off two streets and create the Sugar House shopping area we all know. Despite this, developers are again working on changing the shopping center. The days of Shopko and its large parking lot have come to an end. Soon, demolition of the Shopko will begin, and a new rebirth of the space will start to take place…
For the first time in 15 yearswe had a buyer change their mind at the closing table. Our client, the seller, had already closed on his new home and the sale of his current home. We have been in the business long enough to see a lot of crazy things, but this perhaps is the strangest. The property passed inspection, appraisal, and financing, yet the buyer got cold feet on the day of closing and didn’t sign the paperwork waiting for her at the title company. As much as we all tried to persuade her to changing her mind, she was out.
This leaves us with a couple of interesting problems that we now have to deal with. First our client will not be able to buy his new home. This is a devastating blow for many reasons. Not only does he lose the home he fell in love with, but he is also out the money he spent for the inspection and appraisal. We made our offer subject to the sale of his home, so at least the earnest money he put down is safe. The biggest problem that we are going to have is finding him a new home in this crazy market.
In this market buyers are being faced with competing with multiple offers on the same property. It can be very exciting as a seller to see all the demand for your home, but in reality, it doesn’t always work out to their advantage.
Let me explain how things are going down:
A seller receives multiple offers – They look them over and pick the best one. Most of these buyers have unsuccessfully written offers on other homes and have lost out. These buyers end up offering the asking price or above. The idea of getting a, “deal” isn’t a possibility in todays market.
Second best gets a chance – The buyer that had the 2nd best offer gets their offer placed in a backup position. If the first buyer backs out, they are automatically given the option to become the primary offer.
Everybody starts the search again – All the other buyers including the backup move on to find another home. Keep in mind, they are all looking for the same thing, so it isn’t unreasonable to assume that they will be competing on their next house with many of the same people.
Here comes buyers remorse – Buyers are all feeling like they might have over paid for their home. They had to offer thousands over the asking price to, “win” the home and the excitement of their home begins to sour.
The domino effect – The primary buyer backs out and the backup offer is notified. What could be simple isn’t. The backup offer has moved on and found another home. So the listing agent moves down the list notifying all the offers the deal has failed.
Bad or worse choice – The only buyers that are left that haven’t found a house are the ones who aren’t making the over asking offers or that have less desirable financing. The seller now has to work with these buyers or put the home back on the market.
Sell, buy, repeat – All is not lost, eventually everything works out. Sometimes, it even works on the first try. If you understand the game in the beginning, you can survive the craziness.
Buying or selling a home in this market can be a serious challenge. We have been doing this for a long time and know that what we are seeing now is a condition of inventory and not the housing market in general. The solution to the problem will be more sellers deciding to sell their home. As we alway say, “when the spring flowers come out, so do the listings”. Time will tell when this market will go back to a normal state. In the meantime, we are going to keep writing offers!
Want to know how our clients win more offers? I made a quick 1 minute video a while back explaining how. Check it out below. The home that fell out, here it is again… Luxury-Location-Affordablilty
If you have been looking for that home, with the right price, and all the right amenities look no further. Living between the ballpark and Liberty Park has its advantages. If you like living, you will like this home.
We are first-time home buyers. We knew a little about the buying process, but not having bought a home, we were still very naive. We were placed into a situation where we needed to find and buy a home fairly quickly. We needed to find a real estate agency that could expertly take us through the buying process and at the same time keep our best interests at hand. We found Market Source Real Estate to be very experienced and knowledgeable in buying homes and a team that we could trust. They kept our best interests at hand in identifying homes that would fit the needs of our family and our budget. They kept in constant contact with us as we went through each stage of the buying process and what to expect next. They were able to act quickly when unforeseen circumstances arose and resolve them in a timely manner. Market Source Real Estate was fabulous working alongside our mortgage broker. From start to finish, Market Source Real Estate drove the buying experience “home” while at the same time always giving us time to make decisions. Market Source Real Estate made our buying experience awesome.read more
Jeremy and Monique were incredible agents for us back in Spring 2015. They are very customer oriented, they made sure the house we bought was the one that we wanted and had all the elements we were looking for. Market Source worked so hard for us and were a great asset and advocate to have in the search for a new house, the service was top notch. They have an immeasurable amount of knowledge when it comes to the Salt Lake City market and that expertise in the market got us a great price on a great home. If your looking for an agent to help buy or sell, I strongly suggest a call to Market Source. read more
I cannot speak highly enough of Monique and Jeremy. They both were extremely professional, patient, and courteous. Monique listened to our concerns and desires, and continually found properties that were aligned with what we were seeking. Throughout the process Monique was always willing to patiently explain any questions we had, and we truly felt that we had someone working for us who had our best interests in mind. Both Jeremy and Monique have been available for assistance following our purchase as well, and we could not be happier with our choice of realtor.read more
Monique and Jeremy would great to work with! This was my first house purchase and I wasn't 100% on the whole process (even after a lot of internet research) but they helped until I understood/was comfortable with everything.Their communication was also great. Never felt like I was bothering them with the amount of questions or requests I had. They were always pleasant to work with and never made me feel like I was putting them out. Even when I requested to see a house a 2nd time they met up in-between dinner plans just so I could walk through again. It was awesome :).One of the things I liked most about both Jeremy and Monique was that when we went through a house they pointed out all the good AND bad. They weren't like some realtors where they talk up everything just for a sale. Things that other would follow up with "...but that's not really a big deal" they would state "this could be a big deal and it's something to be aware of". These two were the first realtors I have dealt with (granted have only dealt with a few) that were there to help and not just sell me something as quickly as possible.In short, if you're looking for a realtor there two are definitely worth looking into. My experience was nothing but pleasant!read more
Fantastic!!! My home was on the market for 2 days and I received 2 offers following the instructions and guidelines of Monique. The sale went through and we closed in a week and a half. She and her team made the process effortless. I could not have done this without them. There was flawless communication throughout the entire process. I never felt pressured or left out of any decision making. I felt respected and valued throughout the entire process. Thank you so much Market Source Real Estate! I couldn't have asked for a better experience.read more
We recently had the opportunity to work with Monique Higginson with Market Source Real Estate and had such a great experience. She's AMAZING! We've worked with other agents in the past, and none of them can hold a candle to her. I can't say enough good things about Monique and Market Source Real Estate. She's everything you could possibly need in an agent and more. If you're looking for great representation and outstanding service, then look no further. She's extremely professional and thorough while remaining understanding and compassionate. She worked so hard for us and always made us feel like a priority. Working with Monique was a wonderful experience.read more
Monique's team does incredible work. If you're relocating to Salt Lake City from out of state and want to work a team that is dialed-in to cool old homes and trendy neighborhoods, look no further than Market Source. They also host awesome events at their office in Sugarhouse. Win Win. 5 Stars to this team. read more
Monique and her team are connected, responsive, and have their finger on the pulse for the Salt Lake real estate market. Their level of dedication is unparalleled - and you will experience this when you work with them.read more