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Congratulations! Your property just went live on MLS, and you received an offer on the very first day!
It’s a thrilling moment for any residential homeowner, but it can also be nerve-wracking if you don’t know what to do next.
When a Seller receives an offer on the first day their property is listed, it can be both exciting and intimidating. So, it is essential to keep a clear head and approach the situation with a level of understanding.
As a general rule of thumb, the first offer an owner receives can often be the best. This is especially true if the property has been priced correctly and marketed to its fullest potential.
Why is this? It’s because the “ideal buyer” typically makes the first offer, someone who has been searching for a home or condo that meets their specific criteria. This may include a particular street, building, floor plan, or location. Additionally, this potential buyer may have lost out on similar opportunities and is moving fast and furiously on the property to ensure they don’t miss out again (ever)!!
If a buyer makes an offer on the first day, it is important not to panic and assume that the property is underpriced. This is often the Seller’s first worry!
Instead, the homeowner is more likely to have successfully attracted their perfect buyer.
Accepting the first offer is generally the best decision, as buyers who are keen to secure a property are often willing to pay a premium and be aggressive in their approach. Remembering that turning down a good offer can backfire if you choose to “wait & see” what may happen in a week or two. Of course, homeowners should consider their options before accepting the first offer (or any offer for that matter). Take the appropriate time to evaluate the offer’s content beyond price, including conditions, deposit, terms and the closing date—a reputable real estate broker should be ensuring that the offer is fair, reasonable and accurate.
It is also essential to avoid getting “greedy” when a good offer comes in! While holding out for a higher bid may be tempting, this approach can be a giant “flop.” If your initial buyers feel that the sellers are being unreasonable, there is a strong chance they may lose interest in the home or condo and move on to other opportunities.
Consequently, it is crucial to approach the “offer-out-the-gate” situation with a level of understanding and make decisions prioritizing the seller’s best interest. Rejecting a mediocre offer can be a wise decision while turning down an excellent offer in the hopes of receiving a better one can lead to regret!
In conclusion, the first offer is often the best, and homeowners should avoid getting too “hungry” by holding out for a higher offer. Instead, they should be humble, evaluate the offer, and make a decision that serves their long-term best interest and goals for the property. If you’ve done all the heavy lifting upfront including pricing, marketing, staging, styling and photography – then a quick and swift offer is often a reward for all your hard work! Please be sure to contact a reputable real estate broker or a brokerage team if you need further guidance or assistance. Professionals with an excellent track record can provide valuable insight into the real estate market and help homeowners make informed decisions in regard to offers and everything that happens before, during and after Day One!
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This article was written by Ralph Fox, Broker of Record and Managing Partner here at Fox Marin Associates. Ralph is a Torontonian native who recognized from an early age that the most successful people in life apply long-term thinking to their investments, relationships, and life goals. It’s this philosophy, along with his lifelong entrepreneurial drive and exceptional business instincts, that help to establish Ralph as a top agent in the real estate market in downtown Toronto.
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