Multiple Offers? Yes it is happening
If you are selling your home and it has been on the market for over 60 days without an offer there are a couple of things you should be asking. First and foremost is it priced right? Second, is my agent stalling offers?
The agent stall might be ok, if you both agree to the terms, for instance you might say that you don't want to see any offers under $750,000. Ideally that should be in writing so the agent can show it to potential buyers and save you the time of rejecting the "low ball" offers.
Seeing those offers doesn't hurt. It is good to know what people are thinking on the buying side so you are better prepared as the seller.
Back to the first question though. There are several homes that have had multiple offers over the past few months. All of these homes had one thing in common. They were priced right for the location, condition and most importantly for todays market. Yesterdays market is gone and tomorrows market has no guarantees. The bankruptcy filing of Residential Capital by Ally Bank is a big indicator that the future is still blurry.
I have seen three and four homes all at the same price with two or three of them sitting over 180 days and one or two selling in just weeks. The difference is simply being priced right. One owner has told me more than once "bring me anything." The problem is the clients see her house and the others at the same price and likes the others better.
Think of it this way. If you walk on to a car lot and all the cars are $5000, you would simply pick the best one right? The same psychology holds true for home buyers. Why haggle with the worst of the group when you can start with the best?
A home that is sitting on the market for a long time is only going to attract low ball and investor buyers unless it has some very unique features. If your home is really unique, then extra marketing efforts are going to be required to reach those few buyers who would appreciate your home.
The key to pricing right is knowing the market. Comps are a great start. Lets say you priced your home for $1. If you are in my market, I'll buy it right now, sight unseen if your agent doesn't. I have a pretty good list of investors to help me out too. If you price your home $500,000 more than the home next door which has the same views, same lot size, same build quality, guess what, it won't sell. In fact just being over by 5% appears to be the difference between multiple offers and sitting on the market for 180 days or more.
This leads to a third question, are you serious about selling? If not then why waste your agents time? Price right, and sell today. If you aren't sure what your home is worth, call me. I will do a complete evalutation at no charge. I won't walk in and say "I think we can get $$." This will be a full comp analysis and I will go over every room in the house so you know exactly where you stand. Some small changes might lead to big $ in your pockets.
If you are thinking of listing your home and want to sell, call me anytime 714-594-7355