We've covered how strong coming soon marketing can create pent up demand for your listing and have buyers lined up at your door when you're ready for showings to begin. So how do you leverage all of this interest to generate the best possible offer?
When buyer interest is high, many of our clients choose to allow several days to a week of showings before responding to any offers. This strategy offers sellers a few key advantages.
First, it creates the expectation that multiple offers are likely, and that the winning offer will need to be a very strong one. Therefore, buyers will need to write a nice a clean offer and for a very high price if they hope to have their offer accepted.
Second, it allows time for all interested parties to schedule their showings and tour your home. It also allows for a Sunday open house, which in a hot Spring market can expose your home to dozens of potential buyers. More exposure means more offers for your listing.
Third, it gives your listing agent time to effectively negotiate on your behalf. For example, your agent will notify all parties who've toured your property when the first offer has been received. This will motivate others buyers to write. With each new offer your agent will notify all parties that another offer is in.
In a multiple offer situation we often see a "leapfrog effect" where each new offer surpasses all of the other offers on the table. Sometimes buyers even re-submit or counter their original offer in order to leapfrog the competition. The end result is a negotiation that is much like an auction, where each new bid is a sweeter and better deal for the seller.
If you have a super hot listing...
Don't be in a rush to negotiate with the buyer who writes an immediate offer. Allow time for more showings and more offers to come in. Let your buyers know about their competition so they have motivation to submit their highest and their best. In a hot Spring market this approach can yield an offer that far exceeds your expectations.
Disclaimer: Of course every listing is unique. Always consult with your real estate agent or attorney about the best negotiation strategy for your listing.
This article is published courtesy of: Dan Miller, REALTOR Mad City Dream Homes & RE/MAX Preferred