You are selling your house. I list it and price it to sell. If I told you I could get you an offer the same day which will most likely lead to a final contract for 94%-96% of your asking price, you would probably laugh out loud and wish me luck. Well guess what. It can happen. And it can happen in this market. To tell you the truth, It has happened.
Now I am not going into any specifics but I want to portray to you how such an unbelievable event can go terribly wrong. This goes for all sellers. There is a point in talking with your Realtor that you come to terms with what is the best listing price to get to your ultimate goal. You can't come to that realization without first figuring out what you ultimate goal is for your property. Most people can reach that point, although some have a difficult time.
The tricky part comes in when you start talking about time. In our market on long beach island, especially in certain townships, the average Days on the Market can be close to 250. Most sellers know that it is going to take a substantial amount of time to get their property sold.
BAM!!! You have your self a strong offer.
- "Did we price the house too low?"
- "Are we ready to sell?"
- "What if this is because the market is turning?"
- "If we got an offer this quickly, let's hold off and see if we can get higher offers."
Reality Check! There is a reason for all of this madness. How many times have Realtor explained that your first set of buyers are normally your strongest chance of closing the deal at a reasonable price? Thousands!!! Before I give those reasons lets look at a picture of the perfect buyer.
The Perfect Buyer:
- Ready to close within 30 days
- Are set on and interested in a certain geographic area
- Have been actively looking in your area and understand price points
- Value your home over all others
- willing to pay what the home is currently worth
The reason your first buyers are normally your strongest is because they fit most of those qualities listed above. Even if you get some showings a month or a couple months down the road, the chances are that they are in the beginning stages of looking. The other guys were on top of their search because they are motivated. The later guys are just figuring it out.
The other option is that the time on the market has no impact on why these buyers are even seeing the house. If you have a good agent, they will list a house and already have a few buyers in mind that they have notified weeks in advance. If you turn down those people, there's a good chance that there are no other people looking any way...
and even if there were, you will be running the chance of getting the same or less of an offer a couple months down the road. Time Value of Money explains the rest.
Just a warning to sellers, Don't waste your good strong buyers willing to pay what your original ultimate goal is! Save your self the time and money and don't get greedy because it will cost you. If you would take the offer 3 months from now, take it now!
*If they are not willing to pay what the house is worth, then do not entertain the first buyers. Only if they are reasonable and you are comfortable taking the offer.*
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