Spring is officially here! And as long as the weather continues to match the trends, we will too. Birds are chirping, temperatures are rising, and tendrils of sunshine are stretching out to us all! Today, we're going to share some of our sunshine and shed some light on a common occurance in real estate! You've spent years building and shaping a home into the "perfect fit" for you. Alas, everyone grows, and ideas change. Selling your home becomes inevitable, at some point. And it can be a bit tricky, deciding between practicality and sentimentality, when offered a less-than-desirable proposal. Take a journey with us, as we walk you through a scenario of the potential downfall when ignoring the first offer on your home. Here we go!
Let’s assume that you have had your home on the market for one week.
You’re asking price is $85,000.
Today, your Realtor calls, asking for an appointment to present an offer that a buyer has just made on your home. Excitement fills your chest and you jump from your seat with joy, nearly knocking over an end table (oops). You have an appointment set with your agent to learn more about the terms of the offer, and anxiously await their arrival.
The amount of the offer is $80,000 ($5,000 less than your asking price).
You think to yourself: This is the first bid on my home. And it’s only been on the market one week.. What if there's a better offer just around the corner?
You sit in front of your agent, arms crossed over your chest in determination, feeling confident in your decision, with a reply to the buyer that you’re choosing to hold out for the original market price of $85,000.
The buyer chooses not to pay your figure and continues to look at other homes.
Sitting idly by, weeks turn into months, as you await another offer presentation. After three months on the market, you begin to wonder if you should have been more willing to negotiate with more flexibility. Clinging to hope, you ask your agent to see if the original buyer has found another home yet. But, of course they have. They’ve already bought and moved into another home, three houses down from where you currently sit. Well poop!
In an effort to gain some new interest in your home, you decide to drop the asking price to $83,500.
Another month goes by, and you finally have a second buyer interested in your home! They put in an offer for $78,000. A little bit of a downer, but you’ve been waiting for this moment for quite some time now. And, because you have been trying to sell your home for over four months, you’re growing weary of the situation and decide to counter this offer with a figure of $80,000. The buyer knows your home has been on the market for a while, and agrees to split the difference at $79,000. Reluctantly, you settle for the figure.
The scenario described is not at all unusual. It's completely normal to feel that other offers are around the corner when you get an offer shortly after putting your house up for sale. Ironically, however, the first offer is usually the best offer you’ll ever receive. The longer your home remains on the market, the least likely you are to be in a strong bargaining position when an offer comes along.
The first offer is usually made by someone who has been waiting just for your type of house to become available. Don’t dwell on the "what if?" and ignore the first offer, friends. Negotiate and compromise! And, no matter the outcome, stay positive!