I Don't Want It Unless Someone Else Wants It!
There is an interesting phenomenon occurring in the real estate world that has some agents perplexed. Some of their listings are getting multiple offers while others sit gaining nothing more than additional days on the market.
It seems that the more offers that are received on a property the more offers that continue to trickle in. However, other well-priced listings may be sitting with nothing more than a few semi-interested calls from agents asking if there are offers coming in on the property. When the answer is "no," zero offers come in.
Many agents have told me that their buyers simply don't want to write an offer on a property that isn't being inundated with other offers, feeling that the lack of interest means that the home is not worth having. If they can't fight for it, they don't want it - which makes me think of preschoolers who only want to play with a toy once someone else has picked up. It seems counter-intuitive, but I have seen this happen many times: buyers will circle around a listing they love almost waiting to see if there is someone else interested before they take action. However, this is a strategy that can be very costly for a buyer.
While the concept that if people compete for a property it is guaranteed to be worth more later could have some merit, it is wiser to buy real estate based on facts and not competitive spirit. I know many smart buyers who have chosen not to compete in the price point with multiple offers and have in fact moved up or down in price to be in a less-competitive market. They have chosen to purchase great value properties that do not have the kind of competition that multiple offer properties with escalating prices do.
I encourage you to take a look at your buyers and ask yourself if this scenario sounds familiar. Sit down with your buyers and reevaluate your strategy regarding evaluating properties based on how it solves problems for a buyer and discuss price points. A change in strategy might just help your buyers find the real jewels in the market. Just because a property doesn't have a lot of activity or multiple offers does not mean it isn't an excellent buy.
By Denise Lones CSP, M.I.R.M., CDEI - The founding partner of The Lones Group, Denise Lones, brings over two decades of experience in the real estate industry. With expertise in strategic marketing, business analysis, branding, new home project planning, product development, and agent/broker training, Denise is nationally recognized as the source for all things real estate. With a passion for improvement, Denise has helped thousands of real estate agents, brokers, and managers build their business to unprecedented levels of success, while helping them maintain balance and quality of life.