Whatshot
A quick offer doesn't mean your home was underpriced
A quick offer doesn't mean your home was underpriced
Date: 2018-09-28
If you were to ask home sellers how they would like the transaction to go, most would probably say that what they would really like is an offer to buy close to their asking price, as soon as possible. However, those same sellers will often develop doubt if their wish is granted and they receive a strong offer shortly after listing.
In areas where there is strong demand and a shortage of homes for sale, it is not uncommon, for a good agent to receive offers within a few days of a property being listed for sale, and occasionally even within a few hours. This is more likely if the seller has worked with the agent to set a highly market-related asking price and the property is in good condition to move into.
But as most experiencedestate agentscan relate, the sellers in such a situation will often not celebrate as one might expect, but grumble instead that the asking price was obviously too low if buyers were so keen, and perhaps even say that the agent does not deserve their full commission because they didn't have to work very hard for the sale.
Sadly for them, this strategy usually doesn't work, as informed buyers will compare the property to similar homes in the same area and be put off by the fact that it is now overpriced. No offers will be forthcoming until eventually, frustrated at being unable to get on with their plans to move, the sellers have to cut the price anyway and accept an offer that is probably actually lower than the original one.
In short, sellers should not be too hasty to believe that a quick offer means their asking price was too low. What it is more likely to indicate is the increasing productivity of the real estate marketplace.
He says a quick first offer that is slightly below the asking price should not be rejected out of hand either, but should be viewed as the starting point for negotiations.