Every seller has high hopes for a bidding war when their home first hits the market. However, with the current buyer’s market in NYC, that’s a very optimistic hope. The new federal tax overhaul is just one of many reasons for the slowdown in the market. As such, buyers now have more options and leverage.
If you do get your first offer and it’s less then you expected, there’s nearly always room to negotiate. But there will be situations when you’ll want to consider that first offer. Even if it’ less, then you’d hoped. Here are five such conditions.
Accepting a first offer
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The first offer early on, and no one else is showing much interest
There are good reasons for believing that the first offer may be the best you’ll get. When your property first hits the market, there will already be a pool of buyers lined up. They’ve been in the market for some time and could be waiting for just such a property like yours to come along. The first two weeks is usually a flurry of activity as these buyers are conditioned to act fast.
After that initial burst the pool will dry up quickly, and you’ll be left, with only new buyers to the market. Properties that sit on the market for too long can become ostracized as buyers start wondering why they’re not selling. If you get a serious offer in the first two weeks of hitting the market, you should consider it. Especially if no one else has shown much interest so far.
It’s an all-cash first offer
The highest first offer is not necessarily the best deal. Contingencies will still need to be worked out. These can sometimes get complicated and lead to you taking home less then you expected. An all-cash offer should be; very seriously. It makes for a much smoother and quicker transaction. Not having to worry about lender approval or an appraisal makes the deal much more solid.
You’ve already found your next home
It’s quite the strain to pay two mortgages at once, and for many, it will be financially impossible. If you have to relocate to a different city or state for work, this puts even more pressure on you. Doesn’t mean you should accept a terrible low-ball offer to get the property off your hands, but you shouldn’t dismiss that first offer.
Even if you do have the finances to purchase your new home and move there, leaving a vacant home behind presents other difficulties. Anything could happen to it, burst pipes, heating problems or break-ins that will go unnoticed while it sits empty. Your seller’s agent can be entrusted to show potential buyers still around but expecting them to check up on the place routinely is asking a bit much.
From a serious, and seasoned buyer
If the first offer is coming from a buyer that’s been in the market for a while and understands the buying process, they’re well worth taking seriously. A serious buyer will be anyone that can demonstrate that their finances are in order and they have all the right people lined up such as the buyer’s agent, attorney, and lender.
Have your agent look for any red flags and consider all the contingencies involved. Getting more money is always nice, but if you can get a severe buyer early on, they may be the best offer you stand to gain.