Scott's Weekly Column

First Offer, Best Offer

It was interesting to read an article this week which showed that just under 50% of all regional home sellers who had signed a contract in 2016 had previously rejected a higher offer for their property in the first six weeks of marketing.

Whilst it is difficult to predict in a rising market whether to take an early offer or wait, the decision becomes easier as the market returns to normal conditions such as we are experiencing now.

When a property is fresh to the market, Home sellers will see a lot of activity from buyers looking to view the property. It is important to remember that although a property may be new to the market; many buyers viewing the property have been doing their research and inspecting properties for weeks or even months just waiting for the right property to become available.

Today’s buyers are very well informed on what is happening in any market place. Any member of the general public can purchase a report from a number of different research companies and find out what properties have sold in an area and what price each property has sold for. Consequently when a property is “fresh”, the educated buyers will make an offer based on their research, however, the natural reaction from many home sellers is that the offer has come too soon and if I wait I might get more. Unfortunately may home sellers do not get a higher offer and as time passes the property can become “stale” and interest in the property from buyers drops off. Often the only way to re-generate interest is to drop the price and start the process again.

If you are thinking of placing your home on the market it is important to remember that it will be in competition with other properties in the market place, so make sure you do plenty of market research first and avoid the trap of over pricing your property. If it is priced correctly from the start, you will get good offers close to your asking price and avoid becoming another “first offer, best offer” statistic.

Have a great weekend.