Real Estate Tips and Information by Karen List

Buying and Selling Homes in Santa Clara and Alameda County

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When You Make an Offer on a Home…Make Yourself Available!

May 16th, 2017 · No Comments · bay area, buying a home, campbell home, Duplex, home seller, homebuyer, investor, Market News, Market Update, real estate, real estate advice

For this duplex I just sold in Campbell for $1,105,000, I was the agent for the seller. I worked with this client over 15 years ago when he sold another duplex in Willow Glen. This property had been in their family for over 60 years! This property was really unique, very few duplexes like it come on the market, and the location is very desirable, walking distance to the Whole Foods shopping center and Ebay, and really close to the Pruneyard. So, it’s a unique find for sure and it was very apparent how desirable this ‘one of a kind’ duplex was when we got about 30 offers! Yes, 30!!! Offers ranged all over the place, from 1 offer under list price (have no idea WHAT they were thinking) to many offers at various degrees over list price. 2 of the offers were super close in price and terms, both cash offers, both waived ALL contingencies of the contract, both buyers owned another property in the neighborhood. It was a super tough call between these 2 buyers and both were super aggressive buyers.

We basically went back to both the 2 highest offers and asked for their best price, 1 of the buyers came back with a higher price, and the other buyer was not reachable at the time. That buyer’s agent said he was out playing golf and he wasn’t able to get a hold of him. The buyer that did come back with a higher price told us that this duplex would be for his family, not a typical rental. The seller was a little more intrigued by the thought of the property not simply being an investment, and that the buyer’s relatives would live there, because the mother of the seller lived there for many years, so one side of the duplex had been owner occupied by his mother for many years. The other buyer was apparently just a straight investor that would likely rent out both units.

The 2nd contender’s agent asked us to wait and not make a decision until he was able to reach his client, but hours later, he was still nowhere to be found. The seller decided to go ahead with the 1st buyer that came back with a higher price. The seller signed all the papers, I was ready to give the signed offer to the buyers, and I got a text from contender #2 with their higher offer. And, it was actually higher than the offer the seller just signed, but I had not delivered it yet. The seller took just minutes to think about it, and said we should stick with the offer that was just signed.

The seller did have the opportunity to go with the higher offer from the buyer we hadn’t heard from for hours, since we had not delivered the signed contract yet, but at that point, it had been hours since we reached out to that 2nd buyer, we had no idea if or when we would hear back, the seller had just signed the offer from the buyer who kept in contact, and that was also the buyer that was buying for relatives, and the seller felt inclined to stay with that decision, he felt he had given them a commitment at that point, so he stuck with his decision.

The transaction itself went pretty smoothly, the buyer was all cash, there were no contingencies to the sale, so it was basically a done deal. The sellers were so thankful that we went with their offer because they said they really needed this property for the relatives, and they knew that the seller declined a higher offer in the end, that they actually took the seller and I to a very nice lunch! That’s a first in my 21+ year career! I guess the moral of the story is…When you make an offer on a home, wait by your phone until a decision is made or you may lose it!…If the 2nd contender would have been around when we reached out to him, there could have been another outcome, since his 2nd offer was higher than the other buyer, the seller may have gone with that buyer if he would have responded quickly. Who knows for sure though? The buyer who bought the duplex was super aggressive and may have come back again, but it’s harder to say how things would have turned out if that buyer would have been reachable during the decision making.

Just sold in Campbell for $1,105,000!

Just sold in Campbell for $1,105,000!

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