The First Offer May Be The Best(There has been much discussion over the past several months about how it has become increasingly difficult for home sellers to adapt to this new (buyers) market, after years of being spoiled during the fortuitous boom from 2000 to 2005.)
The average home seller has to first determine if he or she wants to go through the rigorous process and entertain offers that are thousands of dollars less than they would have sold for a year ago.
But just because you lower your asking price does not guarantee you a sale. As buyers gain more control of the market and there is an abundance of available inventory, they have more authority to make low offers.
The article, “Sellers still unrealistic about asking prices” posted November 20, 2006 on Inman News explains how many sellers are finding out the hard way that any offer on their property may be the best they can hope for and may regret passing it up in anticipation for something better.
“A Piedmont, Calif., homeowner listed his home for sale this summer at a price that he'd hoped would generate multiple offers and a higher price. Not long after the house went on the market, a buyer made an offer for over the list price. However, although it was a good price, the seller wanted even more. So, he issued a counteroffer for an even higher price. The buyer rejected the counteroffer and bought a different property.”
The same seller then decided to increase his asking price since he was already offered a higher amount than the original listed price. The property sat on the market for several weeks with no offers. Eventually the seller was forced to reduce his asking price again. He finally received an offer than was thousands less than his initial offer. So, the process took a couple months longer and cost the seller thousands of dollars.
“It's difficult for most sellers to accept an offer for less than they want if the offer is made soon after the listing is marketed. The natural inclination is to think that more exposure will bring buyers who will pay more. This is always possible.”
However, serious buyers have usually done extensive research on an area and their values, so when the right property becomes listed, they make an offer. They are motivated and willing to buy. Thinking that better offers will come along may cost a seller his or her best chance of selling and it would have been quick too.
“Make sure you carefully evaluate the merits of an offer that is presented soon after your home hits the market. Ask your listing agent to give you feedback about your list price and the local market conditions. How many homes like yours are currently on the market? Have any sold within the last few weeks? How do the list prices of these properties compare to yours? Is there serious interest from any other buyers?”
In order to conduct a successful sale, you have to become a salesperson, that is, put yourself in the buyer’s situation. Would you want to buy your property for the listed asking price?
Once you pass up a genuine offer, you risk having to deal with guilt and regret as you lower your price and wait for several more weeks. Do not be greedy, especially in a buyers market. If the right offer comes along, take it. Don’t you want to sell as quickly as possible anyways?
Back to Articles | 
