There is absolutely no doubt in my mind that one of the most difficult scenario's we face as Realtors, looking out for the best interest of our Clients, is dealing with an offer that materializes within the first 48 hours of the property going on the market. If we have done a thorough Comparative Market Evaluation, really researched the competition, both sold listings and active listings, and then taken into consideration the current market conditions for that area, the price tag we've advised the Sellers to put on the property should truly reflect the current value. If this is the case, then there should be no alarm at the quick offer. It should be dealt with like any other offer. Statistics show that the first offer is usually the best offer, regardless of when the offer is obtained.

The Ready and Educated Buyer: Recently I had a client who was looking for a little home that she could move into and fix up. We started by looking at everything within her price range in the area that she wanted. Within a 2 week span, many of the homes that we had viewed, sold, thus she soon became aware of what the value was in the area. Not only had she seen the properties while they were listed, she now knew what they had ended up selling for. She was becoming a very educated consumer. One day I delighted when I saw an Estate Sale come on the market and called her immediately to go thru it, and soon thereafter, I was preparing an offer for her. She was already pre-approved for her Mortgage and had made arrangements for a Home Inspector.

My Listing is Hot! The day after the listing was processed thru the MLS system, I was sitting at the kitchen table presenting my offer to the Executor and his Sales Representative. Regardless of what the property was listed for, my offer reflected the true value of the property, was well within 5% of the asking price and was to close in 25 days. The Executor laughed and demanded a full price counter. There was to be an Open House the next day and he was hoping there would be many bidders at that time. I gingerly argued my case, stating that my Client was extremely qualified and knowledgeable and that she had given him an excellent offer. The Listing agent supported the Sellers view, even going as far as to tell me that he could sell it 10 times over for the amount that they were countering the offer at. At the end of the presentation, I was sent away with a counter offer of 1% less than list. My client did not except the Counter Offer...in Real Estate lingo, we say "she walked"...simply because within the short course of that day, another listing came on the market. It was bigger, better and of better value, even though it was 20K more. She bought it. The only reason the Seller saw an offer so fast was there just happened to be a qualified buyer looking right then. That is not always the case. The "Law of Substitution" states that a person will not pay more for a property when he or she can get buy one of equal or better value in a similar area for less. Timing is everything in Real Estate. In reality, you never know who may be putting a "For Sale" sign up and you have no control over what they may be asking.

My Listing is Cold!  3 weeks have gone by since that Offer Presentation, and the property is still on the market. According to the Sales Rep, the Executor is kicking himself. There have been no other offers since. Lots of showings, but no offers and the next step will be to reduce the asking price of the property. In a very buoyant Real Estate area, Buyers start to question a house that has been up for sale longer than a couple of weeks. Why should they buy it...if no one else has wanted it? What's wrong with it? Not only does the Estate now stand a good chance of receiving less money than the First Offer would have provided them, they also must look after the property until it is sold and the deal closed.

The Powerful First Offer! There is nothing better for a homeowner, than a fast, clean sale, at a reasonable price. There's nothing really great about having your house on the market for weeks or months. If the Sellers Realtor has done his or her job correctly and it is priced right, then the house should receive an offer within 5% of list much sooner than later...and if a Seller is lucky enough to have another Agent and their client waiting for a listing like his to come on the market, then that Seller has hit the jackpot!  The Selling agent has done a great job by pricing the home with expertise, and the Buyers Agent has done their job by scouring the new listings on a constant basis to find the perfect home for their Buyer. That very excited, anxious and educated Buyer is not going to mess around. They are looking hard...and there's a good chance that the offer they give you will be the best one you will see.

What Happened? When  this type of Buyer submits an offer, it really is a big deal. They are submitting a serious offer...and if signed by the Seller, it becomes a bona fide contract. It is not time for petty silliness and when an offer is countered, the seller is actually buying his house back for the Offer price in hopes of making a bit more money. If the offer is within 5 % of the list price, great care should be taken. Not all homes sell for full price. Not all homes are tagged with the correct list price, because Real Estate pricing is not an exact science. So, yes, countering is a huge gamble...and there is absolutely nothing wrong with accepting the first offer you see! Buying and Selling real estate only has one time...NOW...what is it worth right NOW? Another interesting fact is that Sellers can end up chasing that "First Offer" they let get away, measuring everything else against it. It forms an imaginary sale in their mind and they have a difficult time accepting anything less...this prolongs their sale even more. Sadly enough, over my 25 years in the business, I've seen many houses reduced to prices less than the price of the First Offer that was turned down. Some people may believe that it's the Realtor who loves to make a fast commission....but it's not. No one likes to see their clients suffer. Could have, should have, would have. We could have had $5,000 more, we should have accepted that offer, we would have if we knew that was going to be the best. Hindsight is blind.

A Note to the Wise- So, my advice...is to deal with all of your Real Estate transactions in the Now! Don't get caught up in the thoughts of making a few thousand dollars more tomorrow, because it may well result in selling for thousands less tomorrow. Weigh your options wisely and become a very informed and successful Seller!

A note from "The Realtor with a Heart!"

Donna