Special offer

"The first offer is almost always the best offer". AND I'm writing a great offer. So why wait?

By
Real Estate Agent with Alain Pinel BRE 01367196

It's an adage: "The first offer is almost always the best offer." Many REALTORS attest to this, and many of us have experienced it.

LEAPING LIZARDS! WHY dont/won't more people believe it?

 

CONVINCE ME!

I haven't been a REALTOR as long as some of you have been, but very recently, I've experienced this first hand. It's mind-boggling that it's a challenge to convincingly validate to sellers why there is a lot of truth in this.

Today, I am thinking about this adage again because I just submitted an offer a day after the listing came on the market. My seller has been looking for a while. He knows what he wants. And we don't want to waste time. We wrote for over list price with aggressive terms: no buyer inspections, 40% down payment, 3% initial deposit, AS IS. Sellers decided to wait until next week before they look at our offer.

 

WHY?

Isn't this house for sale? I brought a ready, willing and able buyer. If they weren't ready to look at offers, they shouldn't have activated it for sale on the MLS.

Why are we back to setting offer dates again?

 

 

RECENT EXPERIENCES (in less than a year)

  • Early this year, I listed a bungalow. The same day I also told my buyers about the property. One couple instantly liked it and wrote an all cash offer. My seller accepted. Although more offers came in later in the week, the one we picked as a back-up had to withdraw because of job loss. My seller was thrilled he went with the all cash offer.
  • My buyers submitted an offer on a 4-plex. But we were told the seller wanted to wait a few more days. They generated 5 offers, and picked one. They didn't even counter ours. Later, when it closed, I found out that the property sold for $20K less than what we offered. So I asked how come our offer wasn't accepted although we had aggressive terms --- 20% down, AS IS --- and our offer was higher. Turns out that after the buyers did inspections, they requested for a lot of credits and repairs. At that time, the sellers were so tired of the back-and-forth negotiation that they gave in and settled for a lower price.
  • I listed a fixer. It immediately generated an offer. The owner's son thought they may get more offers if they waited a couple more days. It did generate offers, but for less. By the time they thought they should have accepted the first offer, the buyer had moved on. The property sat unsold while the siblings argued among themselves. They finally took it off the market.
  • On another listing, we received a really good offer, but it was less than what the seller wanted. She turned it down. Another offer came in. She turned that down. Finally, we got into contract --- for the same price as the first offer. Had she accepted the first offer, we would have closed escrow two months ago!

RELATED POST

First offer is almost always the best offer ---- how true is this?

 

 

Comments(7)

Dorie Dillard Austin TX
Coldwell Banker Realty ~ 512.750.6899 - Austin, TX
NW Austin ~ Canyon Creek and Spicewood/Balcones

Pacita,

I do believe the first offer is often the best offer. My seller's got an offer on their home. We knew the area we wanted to look so went out yesterday and looked @ a new one that came on the market. It looks like a perfect fit. We made an offer but that seller now thinks he priced the home too low because he got an offer so quick!! Of course he has had no other showings.  Amazing!! He has an offer on another home due to close Sept. 1. My clients are qualified with 20% down, no continguency and will close when they want! The seller is leaving on vacation tomorrow!! Not in a hurry. We will find something else I'm sure!!

Jul 22, 2009 11:02 AM
Terri Onigkeit
Keller Williams of Northern Colorado - Fort Collins, CO
GRI

I just had this happen by an REO they wanted to wait until the house was on the market ten days.

Jul 22, 2009 11:04 AM
Pacita Dimacali
Alain Pinel - Oakland, CA
Alameda/Contra Costa Counties CA

Dorie --- that happened on another offer I made with 25% down in area with declining market values. The listing agent told me that the seller thought she could do better if she waited. The listing agent told me the seller was screaming at her that the offer was insulting. That was 48 days ago. Still no offer. Eventually, the seller dropped the listing agent, went with another agent....and still no offer.

Terri ---- this is what confuses me about the REOs. They do ask for 7-10 days to respond to an offer. But not all REOs insist on offer dates. Everything is so confusing with them. Some insist on getting preapproved by God knows who; others insist on including FICO scores; others want 7 days for loan appraisal/approval --- who can meet THAT requirement?

 

 

Jul 22, 2009 11:36 AM
Ricki Eichler McCallum
CastNet Realty - Corpus Christi, TX
Broker,GRI,ABR, e-Pro, TAHS

Almost always true and I tell my sellers this also.  Hopefully, it will not be true on  one of my new listings as we turned down the first offer :)  Should have a second offer coming in tomorrow or Friday. We'll see!

Jul 22, 2009 12:15 PM
Pacita Dimacali
Alain Pinel - Oakland, CA
Alameda/Contra Costa Counties CA

Ricki --- wishing you all the best. Maybe yous will be one of the exceptions.

Jul 22, 2009 12:43 PM
Lori Churchill Cofer
Beasley Realty - Pullman, WA
Realtor - 509-330-0086 - Pullman, WA

Pacita,

It seems to hold true so many times that truly the first offer is the best.  Like you said, often these buyers have been looking for a while, thus undergoing an education process....when they find a house that has value, they recognize it and offer a great offer!

 

Jul 23, 2009 11:47 AM
Pacita Dimacali
Alain Pinel - Oakland, CA
Alameda/Contra Costa Counties CA

Lori --- when a buyer makes a quick decision, it's not always done in haste or the heat of the moment. More often than not, they've already done their homework, know what they need to do, and takes action.

Again, the hope is that sellers will appreciate this fact.

Jul 23, 2009 03:56 PM