How to know a Seller is motivated when buying Summit County Colorado real estate.
Do the number of days on the market show motivation? Not in Summit County, Colorado.
Whether you are looking at a condo in Keystone or Breckenridge, or a home in Frisco or Dillon, the listing history is a better way to know how badly the Seller wants to sell. If the price started at $779,000, dropped to $759,000 in a month or six weeks, then to $749,000 in another month, and you can assume a level of motivation. If it has been on the market a year with no price reductions, I would suggest that the Seller is not motivated, no matter what is written in the listing information.
Listing Brokers are not able to tell anyone that the Seller will accept anything less than the asking price without the Seller’s permission. So how is one to know that a Seller will accept less? The only sure way to tell is to make an offer on the property and see how the Seller responds. Often the negotiations are a matter of seeing who is best at bluffing, but generally your first offer will smoke out the Seller’s motivation.
If you see a listing that says something like “Seller wants to see offers” that may mean they really want to sell, or it may mean that they are wanting to see something, (anything), and they will counter the offer with a much higher price. They may be anxious to get an offer but not motivated to sell for much less than the list price. If I run an ad, or list in the MLS that the “Seller is motivated” I make sure I have written permission to use the phrase. If the Seller commits to it in writing, it generally means it is true, so seeing “motivated Seller” may mean that you have a better chance at getting a lower price than what the property is listed for.
Many times, Sellers are afraid to lower their list price as they know that they may get an offer for 90% (or less) than the asking price and they want to leave room to come down. Buyers often look at how much they get off the list price rather than looking at the value they are getting for the money. I used to suggest to Sellers that they should price close to their bottom line in order to attract more Buyers to the property. However, I now see many Buyers expecting a healthy discount and they will walk away if they don’t get it, even if the property is priced very competitively. These economic times call for a different strategy, and leaving room in the price (but not too much!) is almost always best.
If you are a Buyer, ask your agent for the listing history, offer less initially, but look at the comparable sales and see how the property compares to others that have sold to know if it is valued properly or not. If you are getting a good buy, it doesn’t matter if you are buying it at 91% or 97% of list price. List price is often a “wish price” but it can also be reflective of the Seller’s desire to sell.
