How To Attract Multiple Offers In Any Market – Part 1
Put The Power Of Negotiation In Your Favor
The Sacramento and Placer County real estate markets are shifting and have been shifting since mid April, early May.
As our correction proceeded, prices were skyrocketing and buyers were paying seemingly anything to get into a home. That’s not happening now and the days a home stays on the market is increasing.
Seller’s who missed their shot in the first two quarters of the year are now wondering, as one seller whose home I don’t have listed asked me this week, “are there just no buyers in the market now?”
I wasn’t ethically able to comment but I can address this here. My first thought after looking at the listing on the MLS was a simple one; your home is overpriced for the market. There are buyers out there but they aren’t willing to pay more for a home than it’s worth.
An overpriced home will never draw multiple offers, ever. They never have and never will. This makes sense if you think about it.
You want multiple offers. Multiple offers help you negotiate the highest price possible. Getting the highest price possible is an art and not for the feint of heart.
The Shifting Sands
Real estate markets can shift on a dime and ours has. While most Realtors in my office commented back in 
April on our company facebook page that “something’s going on in the market, anyone noticing?”, the media and consequently the public are about 4 to 6 months behind this trend.
This is all too common.
The only homes flying off the market right now are homes that are properly priced for the market that we’re in. Any home that is overpriced or not seen as a value to the market is sitting, languishing with sellers asking their agents “where’s that hot market you told us about?”
Fact is, most agents are behind the power curve as well. You’ve got to be in the business, talking to buyers, sellers and agents to keep your finger on the pulse of this market to be able to advise consumers accurately.
Why You Don’t Have Multiple Offers
Everyone interested in selling knows that the home needs to be clean, have a good location and amenities to get the highest market price. Otherwise you’re looking to sell for the average sales price, maybe slightly higher, depending on condition, IF YOUR HOME IS PRICED CORRECTLY.
Do the work to get your home ready to sell. It will pay off at the closing table.
Once you’ve got that nailed, the KEY PURPOSE of the initial listing price is to get butts through your door. In order for it to sell AT ALL buyers need to see your home. They will not visit your home unless they believe it’s a value for the condition, location and amenities.
Most sellers overestimate the value of their homes. Some of that responsibility could rest squarely on the shoulders of their agents. Some agents aren’t honest with their sellers for fear of offending them and as such homes get overpriced.
I will not take an overpriced listing. I will not take a listing from a seller just to “test the market” or “lets try it at this price and see what happens”. I cannot do my job, no Realtor can, when a seller decides to overprice their home. It’s a waste of time for the seller and the Realtor.
These choices result in an overpriced home that, more often than not, will not sell at the average sales price for the market it’s in. When a home is overpriced, you will get few if any showings. If no buyers are coming through, you won’t get any offers.
Simple.
After it’s been overpriced for 2 weeks, some sellers relent and come down in price but generally not enough. By then, it’s too late. Buyers who are in the market to buy have already passed on it.
When the price is reduced, buyers begin to think “they reduced their price, what’s wrong with it?”
Unless the price reduction is initially drastic, which most aren’t, the price reduction will have some but little affect. Most sellers may get a few showings but not enough to get multiple offers.
Then another 2 weeks go by and there are more price reductions. Now the home is stale and no one is coming through.
This scenario generally results in the home selling for less than the average sales price for the market it’s in and not to mention, frustrated sellers. They’ve just lost 1% to 2% to the average sales price when they should have sold 1% to 2% above it. I’d be frustrated too.
For part 2 of this 3 part series, The Holy Grail Of Getting Multiple Offers, Click Here!
Buying or selling a home in Rocklin? If so, I’d like to help you. Please call or text me directly at 916-532-7653 or click here, for my contact page.
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