Timing in real estate is everything. Whether you're buying or selling, knowing when to act can make or break a deal. Let me share a story about two transactions we worked on with the same clients—a condo sale in a slow market and a house purchase in a very competitive one. Both experiences show how crucial it is to strike when the iron is hot.
The Importance of Timing in Real Estate
In real estate, "striking when the iron is hot" means acting at just the right time when the market conditions are in your favor. But timing isn’t just about jumping in fast; it’s about understanding the market and knowing when to make your move. Markets go up and down for all sorts of reasons—interest rates, the economy, or even local developments. Being able to read these signs and act on them can give you a big advantage.
Think of it this way: buyers can score great deals when the market is down, and sellers can get top dollar when demand is high. But to make that happen, you need to be ready to move when the moment is right.
Selling a Condo in a Slow Market
Let’s talk about the condo sale in Jack London Square. The market there was super slow. Our clients had this condo they needed to sell, but we weren’t getting much traffic at open houses—sometimes only a handful of people would show up, or none at all. It was tough, but we knew we just had to wait for the right buyer to come along.
And eventually, they did. We got an offer that was way better than expected—about $200,000 higher than any other recent sales in the area. But then, we hit a snag. The appraisal came in $40,000 lower than the agreed price, and it looked like the deal might fall apart.
How We Overcame the Appraisal Challenge
This is where things got tricky. It’s a common problem in real estate, where the appraisal doesn’t match the contract price. To save the deal, I decided to step in and offer a $5,000 commission concession. It wasn’t much compared to the gap, but it was just enough to keep both sides happy and move forward.
Looking back, that move was crucial. Without it, the condo might still be on the market today. In fact, some similar units in the building that were listed around the same time are still sitting unsold. This experience really showed me how important it is to stay flexible and think on your feet during negotiations.
Buying in a Competitive Market
Once we sold the condo, our clients were ready to buy. They found this amazing house in Alameda, on one of the best streets on the island. But the property was hot—there was a lot of interest from other buyers. We knew we had to act fast and make our offer stand out.
We decided to go in early with a strong preemptive offer, hoping to lock down the house before anyone else had a chance. What really sealed the deal, though, was offering the sellers a free one-month rent-back. This meant the sellers could stay in the house for a month after closing without paying rent. That little extra perk made our offer irresistible, and they accepted it.
The takeaway here? In a competitive market, thinking strategically, making smart compromises, and timing your move just right can make or break a deal. Having the right representation will help you succeed. With a skilled real estate agent by your side, you can navigate these tricky waters, strike when the iron is hot, and secure the best possible outcomes for your real estate goals.
