You’re Costing Yourself Thousands

THE GOOD NEWS:

The real estate market in Fairfield County, Ct is extremely active.  Once again an agent in our office presented an offer today on a home that was new to the market and already had another offer.  The listing agent explained that the first offer was higher, and unless our buyer was willing to raise their offer by X, the seller was going to accept the first.

I say that it’s good news of course because it’s another example of current conditions in our marketplace.  If an offering has unique or compelling features or is priced attractively, there’s a lot of buyer interest.

THE BAD NEWS:

The bad news is that the strategy in handling those two offers could have cost the homeowners tens of thousands of dollars and more by not providing each potential buyer the opportunity to submit their “highest and best” offer.  Who knows what each buyer would have done in that situation?  The typical fear that many have of  losing both buyers in that scenario is just that – nothing more than fear.  Buyers don’t fall out of love with a property because they feel under the gun.  Their initial frustration of being involved with multiple offers is overcome by their desire to want the property even more because they in fact have a fear of losing it.  We never want something in life so much as when someone else wants it also, do we?  That phenomenon, incidentally, begins to engulf us before our first birthday.   Have you ever had two children fight over the same toy after it had been untouched for days?

DO YOUR YOURSELF AND NEIGBORS A FAVOR:

This is not the first time, nor will it be the last, that a multiple offer is mishandled.  If you’re a home seller fortunate enough to be in that situation, however, I suggest that you advise your Realtor to ask each party for their “highest and best” if they are not savvy enough to make that recommendation themselves.  It is their responsibility to do everything that’s ethical and prudent to procure the most money for your home.  Failing to protect your equity is not only costly to you, but also to your neighborhood as it directly or indirectly affects the value of every home.

Please keep in mind that asking buyer B to hit buyer A’s number is actually “setting a bar” for the second buyer, one which they may have been willing to exceed if you simply asked for their  “highest and best.”

Were you ever fortunate enough to receive multiple offers on your home?

Were you totally happy with the outcome?