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Every seller 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 get your first offer and it’s less than 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’s less than you’d hoped. Here are five such conditions.
The first offer is early on, and no one else shows much interest.The first offer is early on, and no one else shows much interest.
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 are usually a flurry of activity as these buyers are, conditioned to act fast. There are good reasons for believing that the first offer may be the best you’ll get.
If you get a serious offer in the first two weeks of hitting the market, you should consider it, especially if no one has shown much interest. After that initial burst, the pool will dry up quickly, and you’ll be left with only new buyers on the market. Properties that sit on the market for too long can become ostracized as buyers wonder why they’re not selling.
It’s an all-cash first offer.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 the homeless more than you expected. An all-cash offer should be; very serious. 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.You’ve already found your next home.
It’s quite the strain to pay two mortgages at once, which will be financially impossible for many. If you have to relocate to a different city or state for work, this puts even more pressure on you. It 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 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 buyerFrom 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.