Sold in a day is a great marketing slogan for listing agents, but not always best for the seller. Here are several reasons why:
- Creating a competitive environment is difficult to accomplish in one day.
Sellers want to get the maximum value out of their home. However, that’s hard to do IF a seller takes the first “good” offer that comes, literally, through the front door.
Unless a seller has a desperate need to move quickly, a good agent will counsel them to think about this:
- IF you let more prospective buyers interested, the potential for getting a higher sales price increases. There are a good number of examples where telling a prospective buyer something like this –
“The seller wants to wait a week to give everyone a fair opportunity to think about this home. After that time, all the interested buyers can submit their best bid and the seller will make a decision.”
Given the current housing market, this is actually a very fair way to ensure that all the interested parties get a chance to view the home.
- Sellers can afford to be fair and let multiple prospective buyers a chance to view what could be their home for life. Waiting a few days will level the playing for prospective buyers. It allows for more showings as not everyone has a lot of flexibility in their schedule and gives every interested party a chance to think through the purchase.
Life today is stressful, taking a little more time can make life easier for everyone involved.
- Not closing in a rush also reduces the chances of buyer’s remorse, when an impulse buyer thinks about the deal, gets cold feet and then flakes out. When someone wants out of a sales contract, it can turn “Wow, great – it sold in one day!” to “Oh great, now what? Should I sue? Should I put the house back on the market?”
- Avoid the “Oh gosh – I never realized that this buyer was going to nitpick everything!” Waiting a while gives a seller a good chance to evaluate each potential buyer’s behavior and what it’s going to be like dealing with them in a transaction. If someone is going to be a pain In the neck, that will surface rather quickly – and better to have it occur before a contract is executed.
Experienced agents will tell you that a quick offer from a troublesome buyer can turn into lengthy and sometimes heated discussions.
- If you establish a period before any bids will be reviewed, buyers may increase their bids so they don’t “lose another house.” And, a seller can still review any and all bids and THEN either ask all the bidders to re-bid or just negotiate with one bidder.
Sellers need to remember that their goal listing a home is to attract the right buyer and drive away the wrong buyer. Waiting before making a decision takes a lot less time for a seller than other alternatives:
- Regret over taking a lower bid “that I should have,” when it turns out that other similar homes sold for a LOT more
- Having a “phantom buyer” decide to walk away from the purchase price they contracted
- Discovering that the quick buyer is going to make your life miserable” and make negotiations expensive AND last for an extended period