Monday, May 21, 2012

First Offer Could Be Best Offer

First Offer Could Be Best Offer

Why is it that more often than not, the first offer a seller receives on their home is usually the best offer? Of course, this is not true in every situation, but there are reasons why sellers should give serious consideration to the first offer they receive.

Buyers usually start off slowly by going to a few open houses, going online, and doing their homework.  They then  make first contact with an agent to assess what the agent thinks about the local market.

From there, the buyers begin to get more serious.  They may go on a few private showings with their agent and eventually become what we call a "real buyer"  approved for a mortgage, and actively engaged in the process of buying a home. Real buyers are often the ones who write the first offer a seller receives on a property, and that’s why their offers should be taken seriously.

A real buyer's offer may not come in within days of a property going on the market.  It will, however,  come from an informed buyer who is knowledgeable of the market.  If a home is priced too high and a month or two goes by without an offer, it will be the real buyer who has been watching the listing and waiting to see how the market responds.  If the buyer sees that there aren’t any offers on it and there is no activity after some time,  the real buyer will come in with a low offer, which actually may be a good offer, on the seller’s home.

While sellers sometimes see the low offer as insulting,  the seller should still look at this offer closely and investigate who the buyer is, how long they have been looking, ask whether they’ve written other offers nearby, determine if they are working with a good local agent, and ask if the offer comes with a pre-approval letter.

As hard as it may be for a seller to contemplate an offer much lower than their asking price, serious sellers should look at all the signs leading up to it and consider if this is the offer to accept.

Nancy Puder is the owner and broker of Signature Properties, a prestigious real estate sales and property management firm in Arroyo Grande, CA.  You may reach her at 805.710.2415 or email Nancy@NancyPuder.com. Website: www.SignatureProperties1.com. We always enjoy hearing from you!






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