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The First Offer May Be The Best Offer

Sometimes when everything goes right we have trouble accepting that fact. Perhaps nowhere is this phenomenon more clearly illustrated than in the case where a seller receives a good offer right away.

The annals of real estate are well stocked with stories of sellers who refused to take a good, but not perfect, first offer, and who then waited a long, long time before finally accepting something else at a considerably lower price. And most agents who have been around for a while know to shudder when a good strong offer is made almost at the outset of a listing; for the seller’s reservations are almost inevitable. “Did we list it too low?” “If someone will offer this much so soon, maybe we should wait a while and see if we can get more.” Etc.

When we read of Silicon Valley listings routinely selling at above list price, and while we are still in a period when multiple-offer situations are commonplace, it is understandable that such thoughts come to mind. Nonetheless, they are generally unfounded, especially if the market is anywhere near “normal”, as ours is today.

As an antidote to the ill effects of the “curse of the first offer”, a couple of observations might be kept in mind.

First, the fact that an offer is received early in the listing period — even in the first few days — doesn’t mean that the property has been listed too low.

It is easy to overlook how very efficient the residential real estate marketplace has become. Modern multiple listing systems (MLS) provide agents, and thus their buyer clients, with virtually instant access to information about existing inventory and about what has newly come on the market. In the old, old days a buyer’s agent did not become aware of new listings until “the book” (i.e. the compilation of MLS listings) was published. There might have been a lag time of ten days or more from the time the listing was taken.

Today, a good buyer’s agent will have electronically entered a “profile” of his client’s needs and price range into the system. Then, whenever he logs on to the MLS, he will be notified if a listing has been entered that matches that profile. In a low-inventory market such as we have had recently, buyers’ agents will log on a half-dozen times a day, or more, to see if an appropriate new listing has been entered. Moreover, in most systems the buyer’s agent is able to place the buyer himself on a similar notification.

The point is that potential buyers learn quickly of the existence of an appropriate new listing. Thus a flurry of activity at the outset of the listing does not necessarily imply a too-low price; rather, it reflects the efficiency of the system.

Secondly, an early first offer does not imply that the seller should hold out for full price.

We all know that there is typically a bit of a dance in the pricing and negotiating for a property. Sellers, with the concurrence of their agents, will usually list their property for an amount that is both higher than what they believe its value to be and higher than what they would be satisfied to receive. Why? Because they know that buyers almost always want and expect to pay less than the listed price

However, when an otherwise acceptable offer comes in near the outset of a listing period, sellers are frequently tempted to hold out for full price, or much closer to it than would normally be expected. Caution should be exercised in this regard.

For one thing, as we have noted, exposure of the property to buyers occurs pretty quickly nowadays, and sellers shouldn’t assume that there are going to be more, much less higher, offers as the listing period progresses.

Secondly, there often can be a transactional benefit to “leaving something on the table.” A real estate transaction is a process. These days, with inspections and disclosures, there are almost always “second negotiations” during the course of escrow. A buyer who feels ground down in the purchase negotiation may well be more difficult to deal with as other issues arise.

Position Realty
Office: 480-213-5251

TOP TIPS FOR SELLING YOUR HOUSE IN FALL AND WINTER

The temperature is dropping, the leaves are changing, and pumpkin spice everything has taken over the world. With fall color and produce so prominent at this time of year, you may be tempted to load up your home with an abundance of both. But if you’re trying to sell your home now, a little discretion may go a long way. And that’s just one of the tips for selling your house in the fall and winter.

Pay close attention to your curb appeal

We’ve admitted to having a problem resisting the temptation to buy every available pumpkin and decorative gourd at the market at this time year, so we feel your pain. But when it comes to styling your front porch, there’s a slippery slope between nicely decorated and Farmer’s Market.

The idea is to enhance your curb appeal, not obscure it. “While too many fall decorations will take focus off of your home and its best features, a few tasteful accents can create an inviting setting and make your home feel fresh,” said HGTV.

You also want to make sure that fall leaves haven’t taken a toll on your yard. Buyers may be understanding if your lawn is covered and unkempt, because they’re living the same reality, but that doesn’t mean the home will make a good impression.

curb-appeal

Go easy on the gore

You may love the idea of blood and guts and skeletons rising from your yard and headless individuals hanging from your trees, but will buyers be amused or afraid? Anything that has the potential to turn them off is a no-no when listing your house. Sticking to safe decor choices will help you appeal to the masses.

Go easy on the holiday displays, too

Apply the same logic when it comes to Christmas decorations. Tasteful displays will, quite literally, show the home in its best light. Outfitting the home to compete with the Griswolds will make it a spectacle, but not necessarily saleable.

Let In the Light

It’s always a good idea to open blinds and make sure windows are sparkly when trying to sell your home. But especially with shorter days in the fall and winter, you want to make sure you maximize the light in your home, which can make it look larger, fresher, and also “highlight your home’s best features,” said HGTV. Still need a little help? “Let in as much natural light as possible‚Ķand place plenty of lamps throughout your home for additional illumination.”

Make your space inviting

As the weather cools down, a warm and cozy atmosphere will give potential homebuyers a warm and cozy feeling. Use plush throws on the couch and beds, add fall-accented pillows to couches and chairs, and, “Try displaying vases of fall foliage or bowls of seasonal fruit throughout your home,” said HGTV.

Prepare your fireplace

A roaring fireplace during showings adds to the welcoming feeling. But, even if you’re not yet ready to light a fire, making the fireplace look great is important. Clean those doors well, and sweep out the inside, too. If the paint inside your fireplace is wearing away, a fresh coat will help. Now, stack that wood nicely or replace it with some modern glass, and you’re ready to go.

Use fall scents to your advantage

Cinnamon and pumpkin spice and vanilla, oh my! The flavors of fall are unmistakable, and when they’re flowing through your home, you can create a powerful connection with buyers.

“The fall and winter months are associated with certain smells and flavors (think: pine needles, cinnamon, peppermint and pumpkin pie). Beyond setting the mood with decorations, you could try appealing to buyers’ senses in multiple ways,” said Smart Asset. “For example, if you’re hosting an open house you could keep hot chocolate and pumpkin muffins on hand for visiting buyers. If you don’t want to go that far, keeping a scented candle burning in the background or playing some holiday music can work wonders.”

Position Realty
Office: 480-213-5251

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