June 18, 2017
By Kay Wilson-Bolton
In a competitive market like this, the impact of a making the early and quick “pre-emptive” offer can vary. In the old days real estate professionals would advise clients their first offer is their best one. It’s not always true.
If a home is listed at $650,000, it is reasonable to assume that a quick, full-price offer with reasonable terms, made prior to full market exposure, would be readily accepted by the seller.
Recent experiences demonstrate it isn’t so. In the case of a trustee’s sale, it is the duty of the trustee to obtain the highest net return for the beneficiaries. The trustee may feel more compelled to wait to see all offers unless a fee appraisal is in the file making the trustee aware of what to expect when the house is appraised. And, the trustee will wait if there is no pressure from the beneficiaries.
If the sellers are being relocated, they are likely to accept their first, full-price offer unless they have a guaranteed buy-out and can afford to wait for a higher price. If it is a flip house, investment funds for the next sale are tied up until the close, it could go either way if the investor has significant funds in the bank.
The various business practices of individual brokers and their agents will influence the outcomes. Based on the contact management programs being used, buyers may hear about new listings within 24 hours of being taken. Others will learn about it in real time.
The neighborhood network is also in play. Word will leak that the property is coming on the market soon. Sharp buyers and their agent will make the pre-emptive offer that will result in one of two events. “Stop — let’s see what else is out there;” or, “Go” and move towards escrow with the seller not looking back.
Listing agents needs to be wise in how they advise their sellers. The wrong advice could cost their clients both money and time. There is no substitute for experience, but the agent is obligated to present options stand by while the client decides. It is always the client’s choice. Always.
Kay Wilson-Bolton has been serving Ventura County since 1976 and brings a regional perspective to local issues. www.kaywilsonboltonblog.com. She can be reached at 805.340.5025, or email@example.com and is associated with Century 21 Troop Real Estate.