Sellers and inexperienced agents are prone to panic when a purchase offer is received during the first 1-2 days the home is on the market. They usually think something is wrong – like the price is too low.
But this is how the game works – the motivated buyers are automatically notified when a new listing hits the MLS, and they jump right on them.
Buyers may act quickly, but it doesn’t mean they are willing to pay the price. Their decision is complicated by fewer closed sales, and generally flat prices – plus the sellers still want test new highs.
What do you do when you get a quick offer that isn’t full price?
Here are my three thoughts when deciding what to do:
That sounds like great advice and makes a lot of sense Jim! You mentioned some houses where the seller bought at a real low price and now is making a killing and it’s all listed in the MLS which may turn off buyers. I have noticed that some properties where I know for sure the property was sold and then relisted and somehow the seller was able to delete the price from the major real estate listing websites that they had bought it for. I also have seen others where they listed it an overpriced price and then delisted and months later relisted it at a lower price and managed to delete the originally overpriced list price. How is this done? Thanks.
it’s all listed in the MLS
For clarification, our MLS does not list the previous sales on the main listing page, but virtually all other portals do. Same with past sales and competing active listings – they are all right there on Zillow, but on the MLS you have to go dig for them on other pages. This is our new MLS that was rolled out this year.
I don’t know how to remove previous listings from Zillow or others. But we are in an environment where there are no rules – these portals can do whatever they want, and money talks.
Excellent points, Jim.
We’re currently still in saving mode to purchase a house and looking at previous sale prices and current sales price is one of the first things I check.
And when I see something like a 100k or 200k markup in just a year or two, sometimes just a few months, then I’m really disgusted/turned off by those offers. Especially if I can see that there haven’t been any improvements to the house to warrant that price jump.
Come on people, at least stay within the rate of inflation and make it realistic price increases.
Great common sense advice!
First is usually best seems even more true these days. I think buyers are being more deliberate now and are unwilling to engage in the bidding war shenanigans. My only add would be, as a seller, if you are going to take that first one below market, fine, but do your best to shorten all the timeframes. If you have to bounce back on the market, better to happen in 10 days where you might still have a chance at a straggler that was on the fence and kicking themselves for not making an offer. Nowadays, if you bounce back after 21 days, that is as good as stale and you might as well delist and come back in a month or two. I may be overstating that a little, but not much.
Agreed, whichever deal you take, makes sure it sticks because 21 days from now all others who had interest will be way down the road.