In tough real estate markets, buyers might take a gamble on a home that’s not listed. Here is how you should handle an out of the blue offer. It is the unexpected envelope in the mail or knock on the door. A complete stranger says he/she wants to buy your home, and for a wonderful price.
It’s even quite common for an old friend of an acquaintance to approach you about their desire to buy your home. Getting an unsolicited offer for your house can feel a little odd.
What are you supposed to do when you get an enticing offer from a home buyer when your house is not even on the market? It occurs more often than you would think, and it is helpful to carefully consider all your options, whether you have thought about selling your home or not.
Why does this happen?
While you go about your day to-day business and enjoy the comfort of your home, able and ready buyers are eager to be home owners. In most areas of the country, the inventory for houses is still at record lows.
Quite frankly, there simply are not sufficient options for home buyers, so they are forced to think outside the box. Some of the zealous home buyers decide to take matters into their own hands, and mail letters to houses in the neighborhoods they desire and hope for a winner.
What should you do?
If you do not have any desire to sell your home, do nothing. However, some homeowners will want to hear what the home buyers want to say, and others may seriously take into consideration an off-market offer.
Your first step is just to listen. You will want to first vet the prospective homebuyer over the phone so that you can ensure that they are serious. Often, real estate agents will search for expired listings and reach out to the owners in an effort to drum-up some business for themselves. It is a way they accumulate real estate properties to sell.
You should ask the prospective home buyer how long they have been searching, if they have already made other offers, and what are the areas they desire.
You should then ask the homebuyer why they decided to select your house. A homebuyer who mails an offer directly to you and only you most likely really wants your house, as opposed to the home buyers who send postcards to fifty people.
Hear them out and try to better understand their experience in the market, possible price or terms and motivations.
You will most likely have to show them the house. If they seem serious, you can take that step. You should however be cautious when letting a total stranger into your home.
Enlisting a real-estate agent
If you used the assistance of an exceptional local real estate agent when you bought your house, you may want to engage them again at some point.
Although sellers and buyers dream of completing a deal and saving cash on real-estate commissions, it is normally a better strategy to first consult with an experienced and honest agent. A good real estate-agent looks out for the long-term relationship, and being the adviser to an off market sale is also in their best interest.
Most real estate agents will help in an off-market deal for a reduced commission, because they do not have to prepare and show the house for several weeks or months.
Off-market deals might not pan out
These deals do not at all times come to fruition for a wide variety of reasons- frequently, it is because the seller isn’t motivated enough to let the house go.
And in almost all off-market deals, there is a struggle over the last few 1000 dollars – and that conflict frequently keeps the house sale from happening.
The home buyer wants to be given a discount, due to the fact that they know the seller is not paying a real-estate commission. The seller wants the market-value because the house is worth what it’s worth. Both the buyer and seller want to benefit from the real-estate commission savings.
In many cases, if the home buyer wants to purchase, they have to pay the price quoted by the home owner. The homeowner has what he/she wants, and buying off the market is, in some ways, a good opportunity that they have to pay for.