In a market with slow sales and far too much inventory, it’s often tempting to take the first offer received at face value. But even in a slower market such as the one here in Phoenix, sellers maintain a modicum of leverage in their contract negotiations.

We received an offer on one of my listings in Estrella Mountain Ranch this past weekend. It was well below list price, naturally, and substantially lower than my sellers were willing to go. So they countered at full price. In the interest of fill disclosure, I had advised against a full-price counter because those usually indicate an unwillingness to negotiate. And if one homeowner isn’t willing to negotiate, there likely are a half-dozen others who will.

To my surprise, the buyers countered the counter offer. This was telling in as much as it indicated the buyers were serious not just about buying but about this house in particular. If there were viable second and third options, they would have elected to start negotiating on those instead.

Shortening the story, the sellers countered one more time, the buyers countered one time after that and after some verbal haggling the contract was completed. My sellers still were looking for a little more money, but negotiations had reached a point where it was clear the buyers would not budge another penny.

In some markets, a seller can hold firm and dare a buyer to walk. But in a market where there’s 10-month inventory across the board (and an even more substantial inventory in Estrella Mountain Ranch), at some point the fight needs to end if a sale is take place.

As an aside, I had a second couple interested in the property after the latest price change. But this offer came through before they had decided whether to make a bid themselves.

Even in a slower market, homes do sell. If you’re truly interested in a home, it’s still best to make an offer once you’ve decided the home fits your needs. Wait too long, even just a couple of days if the home’s priced particularly well, and you could find yourself spending time researching a home that someone else bought.

In Arizona, there’s a built-in 10-day inspection period during which the buyer can do all of their due diligence without worry of someone else snatching the home of the market. It’s an antsy time from a seller’s standpoint, but can serve as a 10-day grace period if you’re a buyer.

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Tags: General Real Estate, Tips for Sellers, Tips for Buyers //