Home Selling in San Mateo>Question Details

Christine Du…, Real Estate Pro in San Mateo, CA

Is the first offer the best offer?

Asked by Christine Duncan, San Mateo, CA Mon Jun 28, 2010

Many agents believe the first offer is the best offer. What do you think?

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Christopher Pohlman’s answer
BEST ANSWER
Hi Christine!

It depends on the circumstances really I believe. If you've priced it well or low and it's a great property, then you probibly have the oppourtunity to get another offer. Especially if its been on the market a short period of time. If it's been sitting for a period of time and you are unable to get people to view the property, then I would say Yes! Take the offer, get it closed, and move forward.

The other factor is the motivation of the Seller. Positive reasons and negative reasons for the sale effect what a Seller will accept.

For instance, a Seller who is losing their home psycologically wont care as much for what it sells for because they see it as the banks loss and not as much theirs (Once its at that point). A Seller who is moving for a job or a larger home will have preconceived notions of what they "need" to get out of the sale to move on into the next chapter in their life. (Buy a home in the other city, pay of debt to start new, etc.)

It really depends on each individual situation


Christopher Pohlman
DRE 01838445
415.894.2469 direct
888.669.8881 toll free
christopher@yournewrealtor.com
1 vote Thank Flag Link Mon Jun 28, 2010
Often. Not always, but often. Maybe even usually.

Think of it this way. How many days have you been on the market when you receive that first offer? Well, three weeks from now, it will be that plus twenty-one; will buyers think that it's become more valuable with extended market time?
1 vote Thank Flag Link Mon Jun 28, 2010
It may not be the best offer, but you would be a fool not to take the first offer very seriously as it may go away if neglected. If they are serious enough to make a qualified offer, have the decency to respond...and take the emotion out of it if at all possible
0 votes Thank Flag Link Tue Mar 29, 2011
Not always, but no offer should be dismissed. If you have a person interested in you home it is a good idea to write a counter offer. They may have put in a low offer just to test the waters and see how motivated you are to sell. In this market it's a good idea to hold a prospective buyers interest in your home so they don't go down the street and buy somone else's home.
0 votes Thank Flag Link Wed Mar 23, 2011
No, the first offer is not always the best offer, particularly in this real estate market.
Web Reference: http://www.golftobeach.com
0 votes Thank Flag Link Wed Mar 23, 2011
The 1st offer from the 1st person? The 1st offer from a person, from many other offers?
0 votes Thank Flag Link Wed Mar 23, 2011
That is an open ended question, many factors come into play. How long has it been on the market, what is the motivation to sell do you need to sell now or is the seller in no hurry. It really is up to the buyer whether they accept or wait!!!!!!!
0 votes Thank Flag Link Wed Mar 23, 2011
Often it is because that buyer has been waiting. Ignore it and you may have to wait for another buyer to "get ready." It takes awhile before buyers know enough about the market to feel confident jumping in - so if you have a fully educated and confident buyer who offers immediately don't take it for granted.

The other comments are valid as well meaning it is situational. If the offer is way below what is reasonable of course you can probably do better. But, if it is just that you had wished that you could do better, you're better off getting real with that first offer.
Web Reference: http://MintProperties.net
0 votes Thank Flag Link Fri Jan 7, 2011
Christine,

The first offer isn't always the best but a bird in hand is better than 2 in the bush. Also, as you may know, the longer a property sits on the market, the less interest it generates. That said, it may be that the frequency of offers drops after the initial offer.

Cynthia I. Nakaya
Realtor, Tarbell, Realtors
Eastvale Office
12648 Limonite Avenue, Suite 2G
Corona, CA 92880
951.743.3321 Cell/ Text
951.270.1020 Fax
cnnak@aol.com
License # 01818243
Short Sale Certified
Turning House Calls into Homes
0 votes Thank Flag Link Fri Jan 7, 2011
More often than not, yes, the first offer is the best offer.
0 votes Thank Flag Link Mon Jun 28, 2010
Christine it depends, if you are a buyer you need to find out if there are any other offers in or coming in, if not than you may have time to make a lower offer, if there are other offers, you should make your highest and best offer up front.

Remember the best offer is not always the highest offer, cash beats financing and an offer with no continingincies beats one with alot of them. if you want a home inspection, make sure the inspection and results are no mor ethan 7 days from acceptance.

I have a blog with some more infomration

http://www.trulia.com/blog/scott_godzyk/2010/05/how_to_get_y…

HOW TO GET YOUR OFFER ACCEPTED WHEN BUYING
Web Reference: http://www.ScottSellsNH.com
0 votes Thank Flag Link Mon Jun 28, 2010
Christine,
It often is. However, it can become problematic sometimes when the offer comes in shortly after the property is listed.

The Sellers can feel like it's happening "too soon" and they're just not prepared for their move. Also, they may feel that the agent hasn't really "earned" his/her fee because finding a Buyer for the home didn't take a long time. Worse yet, the Sellers may feel that the asking price was set too low.

I really believe these are the times when a good agent proves their worth. (Notice I used the word "feel" a lot?) Sellers in this situation are operating from emotion. The Realtor needs to calmly address the offer and its merits, and also explain what could happen if the Seller decides to wait for another, better one. In a declining market, to get an offer early on is cause for celebration, not sorrow.
0 votes Thank Flag Link Mon Jun 28, 2010
I would have to agree. It also all depends on the circumstances. If you are thinking that the offer you received is too low ask your agent for comps. Most often though, that first offer is the best when it comes to resales.

Lisa Barton
Century 21 Heritage Realty
770-778-0842 Cell
770-867-6121 Office
lisabarton@live.com
0 votes Thank Flag Link Mon Jun 28, 2010
I am sure your agent is acting in your best interest. I know agents seem on the surface to be only commission driven, but the truth is we do this so much, we are psychic! Agents know, price, condition and area drives the type of buyer you are going to get, plain and simple. At the end of the day you are the client, so talk it over with your agent, see why they think it is the best choice.
0 votes Thank Flag Link Mon Jun 28, 2010
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