We talk to Matthews Sales Agent Russell Matthews about why your first offer should never be ignored.
Putting your property on the market can be a very emotional time. There’s always a lot of uncertainty, especially with regard to price, as you are guided by your agent. Inevitably, you’re in the hands of “the market”. The market, your buyers, are the ones who will determine how much your property is worth. Their final offers will set the market price. This can be very unsettling for sellers and truth be told, for agents too.
When your first offer comes in very quickly at the launch of your campaign, it’s human nature to assume that it’s too soon; that this first offer is not the best you’ll get. Read on for some surprising news from Russell who has been selling for over 25 years and has seen it all when it comes to buyer behaviour.
“Quite often, it’s the first buyer that comes through the door that is the keenest buyer. The reason for that is, that they’ve been looking for a while, usually three months or more, they know the market well and they want to get to the property before anybody else does. It’s in their best interest to impress you. They’re going to make a strong offer.” Russell says.
“They’ve probably filtered their search so that when your property comes up, they’re ready to go. It gives you a bit of power as a seller. If you’ve got someone that’s keen from the start, the seller actually has the power because the seller’s the one that’s only been on the market for a day. Those buyers have been on the market for months, and they’re sick of looking.”
“On several occasions, I’ve seen sellers that have just held out because it’s been so quick. They think, “This offer showed up so quickly, surely I’m going to get more later on down the track,” and it’s just not the case about 90% of the time.” Russell cautions that sellers who are unfamiliar with the market do run the risk of keeping the house on the market for too long waiting for their dream price, and they run the risk of it going stale. In some cases, sellers actually get less than what the property’s worth when they hold out.
Russell’s advice to sellers is to research the market very well. Look at previous sales in close proximity to your property and make sure they match in terms of style, size, features and condition. Sellers who know the market will be in a much better position to recognize a good offer when they see it – and it’s likely to be the first one!
See the video interview with Russell Matthews below.