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17 Comments on Offers beget Offers
Randal~very interesting perspective! It's a shift in energy, perhaps, and is rather magnetic...I notice that at trade shows, how some boothes attract more people, as one shows interest, then others pick up on it and say, wow, let's see what's going on over there....and then others just sit in an empty booth hour after hour (I feel sorry for those folks).
Good morning, Randal.... I agree.....for some reason, when a home has been sitting and waiting, the crowd comes and the offers are written.... one never knows when that will happen...
Good morning Randal - that's certainly been our experience many times! It's probably the same force that makes everyone reach for the last spoonful of mashed potatoes at the same time.
I think that this is imaginary. If an undesireable property has been on the market a long time and a couple offers come in it just means someone did not find it so undesireable afterall and finally got ready to make an offer.
It may be the positive energy of getting even one offer. It changes your outlook for future showings, listing appointments. When we feel we are at the top of our game, the energy is infectious. I had 1.3 in sales fall apart this week (appraisal issues, too low, home inspection issues), but my focus is on the 3 sales equally 2.3 closing....and I'm showing today. I liked the featured listing on thinking 90 days out. I can't control my future, but I can work it as best as I can and try to control today. Nice post, thanks for sharing.
Many times the onlt problems is how agents think. You're comment " you figure- we can get this one cheap" is exactly the wrong way to think, but agents and buyers still do it. They should be calculating the fair market value, the condition and amount of potntial repairs that might be needed, then make their offer accordingly. Days on market has nothing to do with value. Have you even seen an appraiser use DOM when appraising a properties value? Well Mr. and Mrs. Seller, Based on comps, condition, location, etc, your property appraises at $429,000.00, but wait, I see it's been on the market 138 days, so I'm going to deduct $1000.00 per day, which brings the appraised value down to $391,000.00.
I've had this happen to me on some of my own listings as well as with my buyers. In fact I just had this happen yesterday on a condo listing. On one listing, we had two offers come in. The first was $400K below the asking price and the 2nd was only $150K below the asking price. Now my clients are willing to work with that one and we'll likely be in contract in a couple of days.
So true. Nothing happening and then all of a sudden multiple offers. Just closed one last week that was like that!
Randall, I will typically tell my buyer clients that if they like the property you can bet someone else will to. You bring up an excellent point that really does happen a lot.
Just like posting too....You do one, you launch it and nothing happens...A little while later...the responses start coming in
I've seen this happen before, too. It's an interesting theory, for sure.
Definitely agree. I was driving to meet my seller with an offer on his lot. It has been on the market for 2 years. On my way to the appointment, guess what? Another offer on the lot!
Very true. Buyers always want what another buyer wants..it makes it more valuable apparently..nobody wants to be the first!
Hi - sometimes it is price.. so many buyers waiting for the price to reach a certain level.. and yes.. the home could have been on the market for a long period of time.. but as soon as it reaches that special number.. mutliple bids.. or it is simply the best value at the tail end of the spring/summer market...people settling
Well I have a different theory. One is there are many agents out there that look at property's that have been on the market for a long time and think ok maybe my buyer can get this at a good price, seller must be fed up by now if they really want to sell and my buyers looking for a bargain may be a fit. These agents have about the same number of days on market as their guideline so this activity seems to coincide, thus a small temporary spike in demand for that home.`
Two is the majority of agents have gone the way of that is how it is done now days crowd. They get a written offer and call the listing agent who presents it or at the least lets the listing agent know what the offer is. The buyers agents are the idiots that allow this to happen. First thing the listing agent is going to do is start broadcasting to every agent that has shown or made an offer on the place or whatever criteria they have that an offer is coming in at such and such, your buyer may be able to get this at a great price by offering a little more, etc. and then multiple offers and the auction effect comes into play. you should have learned your first year in the business not to let you offer be shopped around.
So you brain dead buyers agents out there that declare how well you represent your buyers you need re-education on it is not what is easiest for you, but what is best for your buyer. Your offer should declare only to be presented to the sellers in person by the buyers agent, no information to be revealed ahead of time to sellers agent or anyone else. Offer shall expire 48 hours from the time and date contract was signed by buyers below or upon presentation. Listing agent says come on, give me a little info so I can prep. I say OK the offer is written and I think it is a good one. Last listing agent tells me If I don't get a copy in advance I won't present it, I say OK give that to me in writing, my fax number is, and of course you know where to show up when the hearing is scheduled. In the meantime I will have my buyers go and contact your sellers directly because the are not bound by the code of ethics, I know they should be but they are not, said sarcastically. Letting a listing agent represent your buyers at the presentation of the offer is letting a defense attorney be the judge too at the same trial.
I noticed a strong increase in this activity when I joined a board that had the policy of having the listing agents present the offers, where my main board had the policy of listing and selling agent present the offer to the seller direct. The second board had a rude awakening when they want to fine me for insisting I be present at the offer and I showed up at the hearing with a member of the department of real estate in tow and they started having to leave on urgent business and wanted to reschedule. The letter they got from the state made it absolutely clear what was going to be the new policy of the board and it's members. The response of the board was there was a misunderstanding the hearing wasn't to fine me but to cover that this was only a meeting to cover a few things, it was not a rule or legal requirement, just to let me know how things were normaly done in the area customarily and it would be nice if I conformed because it would lead to greater harmoney overall with members set in their ways. Well, the buyers agents movement was starting about then and their harmoney was due for more disruption.
I had this happen with two properties this summer all within a week of each other. One had been on the market 60 days and was countering back and forth on a low-ball offer. A buyer swooped in and wrote for close to asking price--SOLD! The other was only on the market two days, also countering back and forth on a low-ball offer. Buyer #2 swoops in and writes an offer close to asking price--SOLD AGAIN!!
Buyers make your offers strong the first time and you won't have to worry about someone else swooping in and stealing the deal.
Offers do beget offers. My experience has shown that it is usually because the market has made the property attractive at the price it is being offered. Everything sells eventually, as they say.