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Today's money is worth more than tomorrow's money!
Home sellers sometime think that the property is underpriced when they receive an immediate offer. In out market, you need to move quickly or the parties move on to another opportunity.
Sterling Heights, MI
I think 90% of the time it's your best ....It doesn't mean you take it ....it just means you work it till there's nothing left! I've had sellers take a lot less months after that first offer that they did not work.
Later the home is more "stale". The rule is not always true, a higher price can come later; have seen it happen, but it could be a slippery road for the seller. Waiting could be costly in terms of ongoing expenses e.g. taxes and mortgage and possibility of some serious maintenance issue arising e.g. pipes freezing or flood or even market changing due to bigger economic issues, driving all home prices lower.
I have not found the first offer to always be the best offer, typically it isn’t. At least in this market, it is often a low offer or one wanting a large seller concession. They are hoping the seller will bite. We hold off for a better offer and it has always come through.
After a period of time on the market, buyers feel there is room to offer less. In the early days on the market is when you get the most buyers through, and the better chance to get a full price (or over) offer.
Evelyn Johnston It all boils down to "A bird in the hand is worth two in the bush".
There are differents examples. if a home is vacant , the seller may have to pay mortgage for several more months before he gets the next offer.
If another home comes on the market where the seller is motivated and has listed for less, the seller may have to later reduce the price.
I also believe in the superstition. I have seen examples where it has happened. Last year my clients got an offer of $295k in a month and rejected and it expired. They listed with another agnet. It took the other agent 6 months and it sold for $275k.
I don't know, but if it meets the expections of the sellers, then ratify it. If it doesn't, counter it. It could be the only offer, or it could be 30+ days before sellers receive a second offer. During that time they will have to pay another mortgage payment, another month of utility bills and hoa dues, more taxes, more insurance, etc.
Rule of thumb is ; if the property is priced correctly the first offer will come in during the "window of opportunity" the first 2 to 3 weeks on the market, this is when the hottest buyers are looking who are willing to make the best offer in a normal real estate cycle.
This is the first time I've heard this saying. Never too old to learn something new.
Good Wednesday morning Evelyn. I like Susan's answer.
Good morning Evelyn. I am a seller very often, I can speak from experience, the property gets sold quickly and I can then move on to another transaction. How would I know if a better offer will happen or when?
Not at these days. Every property receives on average 4 offers. So, I would not suggest my client/seller to get the first offer. We usually try to gather few offers and choose the best one.
It probably is not the best offer but most agents look at it as a bird in the hand is better than two in the bush.
Evelyn Johnston they say it for a reason! Even I have seen it happening in many cases with my own listings.
Though I had an exception where the buyers of the first offer backed out - and we got a better one!
The house selling Gods who are looking down on our marketplace! And it's been my experience that the first is usually, though not always, the best one.
Just because you should work all offers and not assume there will be any more.
The longer the home is on the market, the more a buyer thinks is wrong with it because it hasn't sold.
It can be, but it isn't always the best. First offers are sometimes lowball offers and Buyers will come back with a higher offer if refused.
The longer a home stays on the market the less value it has in the buyer's mind. Ever had a buyer ask how long a home has been on the market and then follow up, What is wrong with it?
probably because the longer it takes to sell, the less the amount of the offer.... days equate to money, especially in a seller's market when the inventory is slim....
Evelyn - I think typically the first offer one gets on a home is the best offer they will get. If that offer is not accepted, and the seller waits for another offer, it will usually be a while, and will be for less than the first offer.
However, this is very dependent on what type of market we are in. In a sellers market, the seller should be getting multiple offers that will run up the sales price.
Personally I think they say the first is your best because there were no others previous to it.
Now if the sellers refuse it and the house hangs on the market people start to smell "blood" and the lowballs come in making the first offer the best. That has been my experience anyway.
I always say that it should be your best offer if you really want the home
It is the best offer if it meets the requirements of the seller. Too often sellers will get greedy when a quick offer comes in and unless it is an exteemely hot market rejecting it or not being fair can cause a long wait until another one comes in. I also get frustrated when they say, we didn't price it high enough.