YOUR FIRST OFFER, IS IT THE BEST ONE?
April 6, 2017 | Richard Sites
The first offer you get on you home for sale may be the best one you will get or it may not. Let’s take a look at the differences between the first offer and others that may…or may not come in later.
The first offer generally comes in quickly after a home goes on the market. What does this mean to you the seller?
Active and serious buyers are looking at homes to buy daily. You, as seller, are not.
This means they know what the competition is for homes like yours. You, as seller, do not.
Active and serious buyers are ready to buy when they find the right home.
Zillow, and other online resources, can be your worst source of valuable information about home prices.
The second worst place for correct information is talking to your neighbors.
The best place to find out what your home is worth is either a professional appraiser or…buyers.
This is why the first offer is so important to you, as seller.
Active buyers have seen the competition and recognize the actual value of your house. So, they make an offer.
Let me give you a couple of real life examples.
A homeowner on the Loxahatchee River has been trying to sell for years and has been through multiple agents looking for the one with the silver bullet or the secret marketing sauce.
In a phone conversation with him, he told me when his home was listed at $2.6 million he received an offer, his only offer, that was just $60,000 under the asking price. He turned it down and never got another offer.
His solution? He tried to sell it himself and failed. Then, he hired another agent and raised the price. The house still sits unsold.
Here’s another example. In my post, The Perfect Storm, I outlined the steps that guarantee your home won’t sell. During my interview (I didn’t get the listing) the owner told me when his house was listed for $1 million he got a cash offer of $925,000…and refused it. He never got another offer, so like all frustrated sellers he changed agents and raised the price.
The house is still sitting on the market after nearly two years.
What is The Correct Price For Your House?
Let’s assume that your home is priced correctly, or close to it, to begin with. Now, most homes sell for around 95% of the current listing price, not the original list price.
The higher the price of the home, the lower the percentage of the asking price you will probably receive unless you have a very special, waterfront location.
In both of these case cited above, the first offer was well within the correct selling range and should have been accepted.
Why don’t sellers accept these offers? Because their pride leads them to think they know more what the house is worth than the buyers.
A good agent should counsel sellers about these ratios and work to convince them to accept them. Especially a cash offer.
Don’t overlook your first offer, it could be the best one you will ever see.
If you would like to have a conversation about selling and moving forward with your plans, contact me directly at 561.762.4073. I have been helping sellers locally for 14 years and can do the same for you.