In today’s fast pace, high rolling life of a realtor as glamorized by wonderful shows on HGTV (ps these shows are rarely ‘reality’ for most agents), sellers often think, the offer is too low. Lets take a $150,000 Single Family Home in Cape Coral Florida, which by the way that price range is quickly disappearing. Statistically speaking right now the Greater Fort Myers MLS has less than 3 months of inventory for homes in this price range in Cape Coral. That means there are many more buyers than available homes. With inventory levels this low the properly priced home around $150K will be under contract in less than 45 days. Now, when the offer comes in at $140,000 with no financing contingency and can close in 30 days or less that is a solid offer. Could you get $145000 if you waited another 2-3 weeks for the next buyer…possibly. But think about time value of money and the additional costs. You will have 1 or more months of tax pro-rations, you will have additional electric bills, you will have a few extra dollars more in closing costs, realtor commissions, and tax stamps on deed, so the extra $5000 you appear to be making might end up being closer to $3000 extra. Is risking $140,000 for an additional $3000 worth it? If your broker on wall street said, I can get you $3000 Return if you give me $140,000 to invest, would you even bat and eye as such an offer…gosh that is like 2.5% return…you would say don’t waste my time with such nonsense. YET, when it comes to selling a home we do just the opposite, we dig our heals in the ground and expect that higher offer.
Over the course of 14+years in this business and the hundreds of transactions I have done and the Dozens of times the seller has waited for the “higher” offer. I can tell you from experience it is never an offer that was worth the wait. If you are selling your home, and have a solid offer, that isn’t quite as high as you were hoping…I’d say take it, or negotiate a little on it, but try to get the deal wrapped up. The ‘higher’ offer you seek, might not be around the next bend.