For Sellers, Emotions Trump More Money

I know it is a competitive market. It is in fact it's still a hot seller's market with many home seeing multiple offers. Realtors and anyone looking to buy a home here in the Silicon Valley knows this. On some of my more recent listings I have seen all cash offers. And quite often these cash buyers are investors, and it is this situation that makes it hard for the married couple, first time home buyer, with 20% down loan who are looking for a home for themselves to raise their kids.

Having said that, there is something to be said for making that connection to the seller's emotion, and a new study conducted by Coldwell Banker seems to prove that. According to the study more sellers are willing to judge and accept an offer based on other factors than just more money as opposed to years past. 

In fact I closed a deal with a first time home buyer client of mine who wrote a personal letter addressed to the sellers telling them how much she loved the home, the neighborhood, and complemented the sellers on their sense of style in decorating the home and how well they maintained it. Even though my buyer client's offer was not the highest (but still pretty good compared to other offers), the sellers liked the fact that my buyer was being so open and honest about her desire for the home and accepted her offer. 

Sometimes even showing up to an open house, if the seller is there, can make a difference. If you can make that face to face contact with the seller and letting them to get to know you and your situation, often times they will remember you when the offers come in. I've seen some buyers who did this and ended up successfully getting the house. Go figure.

So against the investors with too much cash burning a hole in their wallet, there is hope people.



Home sellers today are twice as likely to choose an offer based on emotion rather than money alone compared to the years prior to the recession, according to a new survey of more than 1,500 home sellers released by Coldwell Banker Real Estate LLC, which analyzed real estate trends in the past decade.

Read more: 3 Mistakes Sellers Often Make
Since 2014, more than one in four sellers nationally sold their home in less than two weeks. But despite the higher prevalence of multiple bids and offers above asking price, sellers judge an offer based more on emotions than the extra money, the study found.

"There is a notable difference in seller psychology today compared to 10 years ago," says Budge Huskey, president and chief executive officer for Coldwell Banker Real Estate LLC. "The national housing market has changed significantly over the past decade, and seller sentiments have evolved. Home sellers often want to feel emotionally connected to the buyer. These findings should give solace to buyers in highly competitive markets who may present a compelling story as to why they should be the next owners of the home."

Before the recession, about 20 percent of sellers accepted an offer based on emotion rather than money alone. However, from 2006 to now, the number has climbed to 36 percent.

"While housing has clearly steadied, we have all wondered how the recession might impact home sellers, and we now have additional insight," Huskey said. "During this recovery, sellers are more aware that their home, which played such a critical role in their lives, will have the same emotional impact on the next occupants. Today, they have more information than ever and want to more actively participate in the sale of their home."

During the recession and its aftermath, more sellers accepted the first offer they received – a notable difference from today. Now, only 46 percent of home sellers accept the first offer they receive – which marks a 22 percent decrease, the survey found.

Source: RealtorMag Online
http://realtormag.realtor.org/daily-news/2015/06/11/for-sellers-emotions-trump-more-money?om_rid=AAFmZk&om_mid=_BVeejGB9CnYC8V&om_ntype=RMODaily