The First Offer can often be the Best Offer

The first offer on your house is often the best according to studies. While the temptation is to wait and see what better offers come in, studies have shown that the first offer is frequently the best offer received.

It is human nature to think that if an offer is received quickly, perhaps the house is priced too low.  It is natural to feel that way, but is it the best approach to take?  Possibly not, and let me explain why. 

At any given time there are Buyers who are just beginning to look at houses; Buyers who have been looking for a while, and still others who have literally seen every house on the market in their price range.  This last group is the one we want to focus on.  Frequently these Buyers will have made lower offers only to loose out to other higher Bidders.  It's human nature to want to get a bargin, and many people try to do that, but in an active market, it often takes getting outbid a few times before the Buyers start to bid closer to the listing price, or maybe even full price or above. 

When a house they really like comes on the market, they are ready, willing and able to act immediately, and may often assume that there are other Buyers out there competing for the same property, so, determined not to miss this one, they make their best offer out of fear of loosing out to yet another Bidder.   

This motivation disappears when the house doesn't sell immediately, in fact, human nature comes into play again when a house sits too long without selling.  People tend to assume that there is something wrong with it and are often less willing to pay top dollar.  The term is called being "Shop Worn" and research shows that the longer a property sits, the lower the ultimate sales price. 

The decision, of course, is yours to make, but we strongly encourage you to give serious consideration to any and all offers that you receive.  The first offer is frequently the best.