Should I Wait to Take Offers Until After the Open House
It's been the same story in every listing I've had in Brighton and Brookline recently. Put the condo on the market, and one of the first questions from brokers: "What is the offer schedule?"
The market is so tight here, multiple offers are the norm, rather than the exception. And most listing agents choose to have a set schedule of reviewing and accepting offers, for example, "offers reviewed Monday 4PM."
This has many benefits. Other than the order and organization, buyers know what to expect and have time to prepare the offer. Conventional wisdom says the traffic at the open house will generate more offers, so best wait for the crowd.
But I'm not one to accept conventional wisdom. In some situations I prefer to review offers as they come, and to get things done before the open house. Why forgo the open house traffic? Here is my reasons for accepting offers before the open house:
1. Serious buyers are ready. They have been ready since before I put the condo on the market, ready to buy the next listing.
2. The savvy agents with serious buyers don't wait for the open house. The call with the "Get me in there!" I believe it is in the best interest of my client to work with a savvy agent, who will have a cleaner offer and easier transaction.
3. Many offers don't necessarily mean more money. Buyers will pay a premium to avoid the open house and compete against more offers. The competition is more annoying to many, and has nothing to do with the price they are willing to pay.
4. Too many offers can be a big fat mess. My job as a listing agent is to sell the property for the most amount of money, with as few conditions as possible. Five offers can get me there just as well as 17. At some point, all the added offers become noise, paperwork, and headache and confusion to the seller. Also, when offers are so numerous, many of the best buyers may decide not to compete.
5. Sellers sometimes prefer avoiding the open house. This past year, I've had several sellers say the idea of having a stampede through their home is unappealing. If they can skip the open house, they would.
6. When you wait to take offers, they don't come in until the last minute. Everyone wants to submit their offer last. So the seller sits in anticipation for much longer. In the meantime, buyers may be less enthusiastic two days later, when they finally write the offer. The best offer capture the excitement of the buyer who just left the unit and doesn't want to lose it.
Yesterday I received five offers for a property I put on market Thursday and showed to a dozen people on Friday. One of the agents asked me, "Will you be hosting the open house?" My reply was, "If I have five offers now, what exactly will I be doing at an open house?"
Today my client chose to sign one of the offers before the open house. I write this in anticipation of the angry buyers and agents calling me from the lobby where I've posted a note "Open House Canceled."
Sorry.
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