Unsolicited offers on your home: how would you respond to that?
Buying your dream house may not be piece of cake at all, particularly when you’re determined to purchase a property that is not for sale! However, the tactic of writing to homeowners has opened the way into their dream world for some people. This is the case of Will and Jung O’Donnell who wrote to a property owner and asked them to sell their house.
This seems unconventional and it is, but when you are getting out of solutions, an out-of-the-ordinary gesture could change your life. This couple shopped around in San Francisco for months, on their own. Then, they tried with real-estate agents. And almost all were dead ends, with the exception of one. The property that they eventually bought was included in an expired listing. Yet, this gave them the chance to send the owner a letter through the real-estate agent.
And the O’Donnells are now living in the home of their dreams, just because they dared to ask.
Now, it’s only fair that we take a look across the border, to the other side: the home owner’s side. It could be irritating and even creepy to receive an unsolicited offer for your home. Real-estate expert and licensed agent for California and New York, Brendon DeSimone explains that 90% of homeowners will turn you down bluntly on such an offer.
Lots of real estates get listed on the market, then removed, because owners changed their intentions. Maybe they’ve made some home improvements or dealt with the issue that caused them to advertise the home in the first place. The property may be rented or the owners were not willing to sell at the very low prices after the market crash. There are cases when the owner may still be interested in selling the house, even if having previously decided to keep it.
The strategy of approaching the homeowner with an unsolicited offer is not wise all the time. However, where people are desperate to buy a house and they can’t find a desirable one, an “unpopular” strategy is better than no strategy at all. In fact, some home owners have even got used to getting letters with unsolicited offers regularly, sometimes every month, when the market is very active.
Why do home owners pass the offer? Perhaps they have no intention of moving or perhaps they haven’t been made the right offer yet. While some are determined on not selling, others don’t rule out this option for good.
Should you be requested to sell your home, there are several things you need to know and be prepared for.
Who is the buyer?
There are lots of real estate agents who try to get their foot in the door, aiming primarily at accumulating properties to sell. They would contact people from old listings and try to convince owners to sell. The homeowner can make the most out of the request-to-sell situation if they have real buyers.
In areas where the market is very tight, like San Francisco, for example, real estate agents will often knock on the door of properties that look like they are about to change owner. Signs in the appearance of the house may suggest foreclosure. This is often the case with properties without proper landscaping.
These are the main reasons why the homeowner should know whether they deal with actual buyers or with an agent. Don’t hesitate to ask for such details when getting a call or mail with an offer. If you know a real-estate agent (maybe the one who helped you with the property purchase in the first place), you could ask for their help, if you’re at a loss about how to handle the situation.
Homeowners have the upper hand!
When directly approached with an unsolicited offer to sell, home buyers can name their price. This is the moment when property owners think about the price that would make them consider a major change like selling and moving. Naming your price does not necessarily mean that the buyer will pay it. But at least you know where you stand if you are approached again with similar offers.
Dozens of buyers are often competing for the same property. A prospect buyer could even agree to pay a higher price just to get over with the home hunt. This is a situation that seems acceptable to people who intend to keep the home for a long time.
What about listing the home?
If you have already received offers without a listing, it goes without saying that exposure will bring in offers galore. Most agents advise home owners to list their home prior to committing to a contract and selling. You don’t want to waste any money, that’s why the safest thing to do is to follow the steps that could help you get an excellent deal.