I remember just a few years ago, sellers would stick their nose up in the air at an offer. Many expected multiple offers, and the norm was to walk away with more than list price.
Fast forward, how things have changed.
How many times have we heard these words from sellers "I won't accept an offer on my home under xxxx. It happens more often than you think. Speaking to many real estate agents who have been around for a long time I was told that about 90% of the time the sellers live to eat those words and in many instances the first offer is usually the best. I have seen this happen many times myself and sometimes the price paid is very high. I know of one case where the loss was about 1.5 million dollars. Does it make sense to hold out in this market, ignoring the concerns of the real estate professional you hired? If your dentist advised you that you had a cavity that needed filling would you ignore his opinion? Of course not, as the consequences would be extremely painful. So, why would you choose not to listen to the real estate professional you hired to help with the sale of your biggest investment? Yet I continue to see this type of a mistake. Here are a few points to keep in mind if you decide to go down this road.
- Your house is only worth what someone is willing to pay, or in other words what the market will bear.
- It is worth what the bank will appraise it at, if financing is required.
- Agents market your home to facilitate the sale but you Mr. or Ms. Seller will need to be part of the negotiating team; drawing a line in the sand won't work.
- Keep in mind that with high inventory and the days on market increasing you are in a Buyer's market. So will you be the next seller to lose big.
So Can you afford to stick your nose up in the air at an offer?