Early Offer Paralysis – When An Offer Really Is Too Good To Refuse
Aren’t humans strange creatures?
We all want our homes to sell quickly because the alternative is a long, painfully drawn out process that wears us down. Plus, we already know that the longer a property is on the market, the harder it is to sell, at least for a premium price. Yet, along comes Mr or Mrs Buyer with an offer early in the marketing process and what do we say?
“Wow! If a buyer is already offering me so much for my property this early on in the campaign, I believe I’ll turn it down because logic says that surely there’s a better offer just around the corner!
Logic? I don’t think so. Experience tells me that this thinking is not only common, but those who fall for it stand to lose thousands of dollars. You see, the ‘value perception’ of your property doesn’t magically increase during the lifetime of a marketing campaign. It almost never pans out that way. Indeed, the opposite happens.
It is imperative that you understand that real estate attracts the greatest attention, and has the highest ‘value perception’ within the first few weeks of the marketing process. So when you receive a strong offer early on, you really should carefully consider taking it, or else run the risk of kissing thousands of dollars “goodbye”.
It’s very early on that competition to buy your property is at its peak and when anyone who has “fallen” for your home will make a move quickly by submitting offers. You’ll almost always receive the highest offer in the early stages because it’s then that buyers are fearful of missing out on it. So, whatever you do, don’t fall for what I call ‘Early Offer
Instead, make a considered judgement, taking into account the advice from your well-chosen agent on whether or not an early offer should be accepted (refer also to the original CMA given to you at the time of signing the agency agreement). That way you’ll know that you’ve sold at the optimum time to achieve the maximum price.
In many, many instances the best offer is made very early on in the piece. You only get one chance to take that offer up – then it’s gone, forever. Dismissing this advice can cost you thousands.