What should I do if I receive an offer on the first day on market? | Top Toronto Real Estate Agent Karen Law
Tuesday Oct 29th, 2019
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Here is a common theme with homeowners who are selling a property: you have a fantastic property and you receive an offer on the very first day that the property is marketed. Should you consider the offer and do your best to work with it? Or is it better to take the chance and wait "a few more days" in case there is a second offer that could be better?
Listen to the video or read the answer below in the full transcript.
If you have any questions about real estate or know someone that wants assistance buying or selling a property in the Greater Toronto Area, give Karen a call at 647-836-2895.
Toronto Real Estate Broker
Hey, guys, it's your Toronto agent here, Karen Law.
And here's a thought for homeowners who are selling their property.
So what happens if you end up getting an offer on the very first day that you go onto the market?
Well, I'll tell you what a lot of homeowners are thinking. They're thinking "if we get an offer the very first day, let's just wait it out you know, a few more days and maybe we'll get another offer. And then we'll have multiple offers!" Or somehow they're thinking that by waiting it out another week or two that it's going to benefit them and that they'll get another offer potentially.
Okay, and here's the truth. If you get an offer the very first day that your property hits the market, it's most likely the best offer that you will get. And why do I say that? Well, from working with a lot of buyers, the buyers who are most serious, who have to purchase and who are motivated to close a deal, they're out browsing homes every single day. As soon as they see a property online that meets their expectations, they're calling me up to see the property that same day that it comes out on the market. Isn't that the buyer that you want to have when you're closing a deal as a seller?
And here in the Toronto market, even though we have about two and a half months of inventory at the moment, the best properties still usually sell within the first week. So buyers know that they have to act quickly. And if they're motivated to purchase the place, there is that strong sense of urgency. And so don't be surprised as a homeowner if you receive an offer the very first day that we market your property. And if that's the case, I always strongly advise homeowners to consider that offer and to work with it. Chances are, that offer as well, is a strong offer because you're really not going to see a lowball offer given to you the first day that we hit the market. You know, lowball offers usually come in when a property has been sitting on a market for quite a period of time, longer than what the typical timeframe would be to sell that kind of a similar property.
So as a seller, if you get an offer the very first day that you hit the market and you're still thinking that you might want to wait it out another week or two to get another possible offer, I want you to think of it this way. When there's a buyer who is not-so-serious, so I'm talking about the type of buyer who's not ready to purchase a home this week, this moment, when they have time to check the MLS and see your property online in one or two weeks from now, they'll book a showing at that time, at their convenience. And what will happen is if they like your property, they might submit an offer.
But again, they're not ready to commit to a purchase just yet. That's why they're not out browsing homes every single day and checking listings as soon as they come out onto the market. And even if they do submit an offer to you, what's the likelihood that a buyer who's not really that serious, that they are going to submit a strong offer to you? Not really likely.
Also, if you happen to think that by waiting another week or two that it might be in your favour, I want you to consider what would happen if one or two homes in the neighbourhood come up for sale during that one or two week period. And what would happen if those homes were priced very competitively to your property as well? What happens if one of those other homes happens to be showing better? Do you think that would be to your advantage or to your disadvantage? So if you are a homeowner and you get an offer the very first day that the property is marketed, I strongly advise you to consider that offer and to work with it and to negotiate with it.
If you guys have any questions at all about real estate or there's anything at all that we can do to help you just reach out, give us a call.
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