Special offer

The Importance of the Offers That Come In During The First 14 Days of the Listing

By
Real Estate Agent with Dave Halpern Real Estate Agent, Inc., Louisville, KY (502) 664-7827

The early offers in the first 14 days of the listing represent the pent up demand for that particular house style, neighborhood and price range.

Current Pent Up Demand vs. Future Buyers Trickling In.

There is a certain number of buyers currently in the market for your house. As soon as your house hits the market, those buyers and their Realtors quickly review your house, either by internet or by walking through the house. If the pent up demand rejects the house and its price, everyone has to wait for new buyers to trickle into the market.

Should I Accept The Early Offers or Wait For Something Better?

Too often sellers turn down the early offers and then wait months for a better offer that may never come.

If the house was listed in the winter, you may have a chance of a better offer in a few months when spring comes around.

But, if the house was listed in the summer and you turn down first offers, keep in mind that you may have to wait 8 months until the following spring for better offers. In today’s market, however, no one knows if 8 months later the prices will be up or down.

Consider The Early Offers With Eyes Wide Open

Conclusions:

Realtors and sellers need to very carefully consider the offers that come in right after the listing hits the market.

If the house is not moving, then the market is speaking with deafening silence. If the sellers need to sell, they must have an aggressive price reduction strategy.

Bernadine Hunter, SFR, ACRE
Keller Williams Greater Columbus Realty - Pickerington, OH
"Finding Solution to Your Real Estate Needs"

This rings so true in our market. The first offer my be the only offer.

Jan 15, 2011 07:04 PM
Nancy Timberlake
RE/MAX Shoreline - Portland, ME
REALTOR - Southern Maine

We all know this to be true but sometimes getting sellers to listen is difficult.

Jan 16, 2011 12:07 AM
Missy Caulk
Missy Caulk TEAM - Ann Arbor, MI
Savvy Realtor - Ann Arbor Real Estate

A well priced listing, in good condition gets showings and hopefully and offer with the first 6 weeks. Very true about the sellers need to really  consider it. Homes sold the first 6 weeks also sell for higher than one on the market for 6 months.

 

Jan 16, 2011 12:49 AM
Irene Kennedy Realtor® in Northwestern NJ
Weichert - Lopatcong, NJ

Dave,

In this market, I'd kill for an offer within 2 weeks - good or bad!  It sometimes happens on foreclosures but even then it is rare. My sellers are strongly advised to negotiate seriously ANY offer that comes in.

Jan 16, 2011 01:20 AM
Kathy Caylor
Realty Executives Associates - Maryville, TN
Maryville, TN Real Estate

Very well stated and completely true.  As others have stated, it's hard to get sellers to agree but creating proper expectations is the key.

Jan 16, 2011 01:28 AM
Dave Halpern
Dave Halpern Real Estate Agent, Inc., Louisville, KY (502) 664-7827 - Louisville, KY
Louisville Short Sale Expert

Thank you everyone for the insightful comments. Your comments enhance the post and illustrate the power of the mastermind group.

Jan 16, 2011 01:34 AM
Michael Setunsky
Woodbridge, VA
Your Commercial Real Estate Link to Northern VA

Dave, the first 14 days are crucial. If an offer comes in, it means the home probably looks good and was priced right. Going with a sure thing is the right decision.

Jan 16, 2011 01:45 AM
Dave Halpern
Dave Halpern Real Estate Agent, Inc., Louisville, KY (502) 664-7827 - Louisville, KY
Louisville Short Sale Expert

Jeramie #1  - That’s why an aggressive price reduction strategy needs to be discussed in advance in case it is needed.

Karen #2 – Collecting feedback and sharing it with the sellers is key.  I use ShowingSuite.com which is assigned to the supra box which is assigned to the MLS number. When the showing Realtor pings the supra box the system emails him/her a feedback survey.

Liz #3 – Excellent acid test that needs to be shared in advance with sellers.

Christine #4 – Especially in this market where it’s impossible to predict long term fluctuations.

Tammie #5 – Right! And try to take the emotion out of it.

Tamara #6 – Early offers mean we did our job right.

Sonja #7 – Right. First offers should be negotiated and not dismissed because it was low.

Asif #10. Yup, pricing it right the first time is vital.

Jan 16, 2011 02:02 AM
Melissa Zavala
Broadpoint Properties - Escondido, CA
Broker, Escondido Real Estate, San Diego County

Great points. I read another post recently that didn't get featured that was kind of the same. It said something like if your wait for the 'two in the bush" they may never come.

Jan 16, 2011 02:04 AM
Lorraine or Loretta Kratz
Crescent Moon Realty, Inc. & Land N Sea Auctions. - San Marcos, CA
Certified Negotiation Consultants

Dave:

It is difficult to convey the importance to a seller the first 14 days, so often reality has yet to sink in. Great post, and good info.

Jan 16, 2011 02:07 AM
Jacquie Cliff
Champions Real Estate Services - Lynnwood, WA - Lynnwood, WA
- Real Estate and Short Sale Expert

I know sellers hate to take that offer that comes in right out of the gate because they feel like they listed too cheap, but the reality is that if you get an offer in the first week, you have hit the mark and gotten the job done!

Jan 16, 2011 02:43 AM
Leslie Ebersole
Swanepoel T3 Group - Saint Charles, IL
I help brokers build businesses they love.

Great points that should be brought up during the listing presentation so that they are prepared. Too many sellers have a knee jerk reaction that they are under priced. If the house is the best choice on the market compared to all the other houses available, then they should get an offer right away.

Jan 16, 2011 03:09 AM
Jeana Cowie
RE/MAX Real Estate Limited - Paramus, NJ
Broker Associate, ABR, CRS, GRI, SRES

The true indicator of saleability& price is found within the first month. Owners who "get it" know an offer that comes in within this time and is within the target price means that everything was done right in the pricing and marketing of the home.

Jan 16, 2011 05:09 AM
Bill Burchard
3B Realty: 951-347-3818, CA - Murrieta, CA
Broker, Realtor, Representing Buyers and Sellers

This is great advice for home sellers, Dave. Home sellers should understand that the offers that come in quickly are most likely from buyers who have been looking in the neighborhood for quite awhile and know value when they see it. And if the home seller turns down the offer, then the buyer will move on... and buy someone else’s home!

Jan 16, 2011 05:40 AM
Dave Halpern
Dave Halpern Real Estate Agent, Inc., Louisville, KY (502) 664-7827 - Louisville, KY
Louisville Short Sale Expert

AR Friends,

I'm commuting out of town today. Will respond to all your great comments late tonight.

Jan 16, 2011 05:52 AM
John Novak
Keller Williams Realty The Marketplace - Las Vegas, NV
Henderson, Las Vegas and Summerlin Real Estate

Great insights for sellers to understand, Dave. I look at this as the home being "in the market" (well-priced, clean, easily accessible, etc.) vs. simply "on the market."

Jan 16, 2011 09:45 AM
Anonymous
Anonymous

I always tell sellers they will never have a larger pool of active buyers than the first few weeks. Likely that they have already looked at a lot of homes, know what other homes have sold for, have been in multiple offers and lost out, and are READY to buy! Do not take that lightly, take advantage of it.

Jan 16, 2011 02:03 PM
#36
Dave Halpern
Dave Halpern Real Estate Agent, Inc., Louisville, KY (502) 664-7827 - Louisville, KY
Louisville Short Sale Expert

Trisha  - Looks like everyone else agrees with you

Cheryl  #12 – Use it in good health!

Traci #13 – The market will tell but the sellers must listen

Greg # 14 / 15 – agree!

SCA #16 – Sellers need to realize it

JM # 17 Only experienced Realtors would now this fundamental

Carla #18 – That’s exactly the essence of the message!

Bernadine #19 – It’s probably true in most markets in this housing climate

Nancy #20 – You know it, we know it, the seller needs to understand it

Missy #21 – I agree on the 6 week range. If there is zero interest in the first 2 weeks the price needs to drop to get in the ballgame.

Kathy #23 – That’s why the pricing strategy needs to be mapped out at the listing presentation

Michael #25 – The seller needs to be non-emotional and go with it!

Jan 16, 2011 03:09 PM
Tony and Suzanne Marriott, Associate Brokers
Serving the Greater Phoenix and Scottsdale Metropolitan Area - Scottsdale, AZ
Coldwell Banker Realty

The first 14 days are a critical time for a new listing.  That's why we are so careful when establishing an initial list price for our Short Sale listings.  Too high - no interest.  Too low - a feeding frenzy and possibly a contract that the Sellers Lender will not approve.  We need to be "just right"!

Jan 17, 2011 01:25 AM
Brian Madigan
RE/MAX West Realty Inc., Brokerage (Toronto) - Toronto, ON
LL.B., Broker

Dave,

All too often, sellers will be "offended" and reject the first offer. In some cases, that may turn out to have been the best offer.

Brian

Jan 18, 2011 02:31 AM