Four brothers and sisters are trying to sell the house. The realtor indicated a price that two of us consider too low. His hope / plan is to make an open house proposal on the day the house is listed. It looks like this will induce an aggressive buyer to either offer that lower list price or an even lower offer. Can we hold out if the offer is below the price list? So, this is the flip side of your article “Make an offer before open days”. How can we stay open to higher offers without losing a customer?
Okay, the question and answer have multiple points of view. First, good luck with four siblings “trying” to sell a house! Over the years, I’ve found that trying to get four siblings, or fewer for that matter, can be negotiable, even if it’s quite difficult. I come from a family where I have three older sisters, and as you might guess, unanimous consent is as rare as the appearance of the Yeti! That being said, I think your real estate agent’s strategy is a little risky … putting all your (your) eggs in the proverbial open-door basket! For the purposes of this answer, I am assuming that the house in question is for sale locally, as from time to time we receive questions sent from outside our region and the location was not specified in your question.
Anyone who has read this column for the past four or five years knows that I am not a huge fan of traditional open houses! Why am I not an open house fan? In simple terms, they do not influence the formation of proposals that the house remains open. Does this mean they don’t work? No, it just means that in our market they are not very effective at creating a crazy feeding atmosphere. I know, I also watch HGTV and see the frenzy of open doors at the end of every episode of Flip or Flop, Good Bones or Hometown. (By the way, these are almost the only types of shows besides football or hockey that we watch at Kimbro’s house!) Unfortunately, I’ve never seen it work this way … they call it reality show, but that’s not all. … reality I’ve ever seen. Again, this doesn’t mean it won’t work, it just means that the statistical odds are low! If this magical open house doesn’t work and you don’t get any offers at all, or the offers you get come from “low scores” (every time I hear the word “ballerinas” I think of the Rock), you are definitely , you can hold out for a higher price from another buyer in the future. If you receive an offer at the asking price and do not accept it, there may be some potential issues with the agent commission due, but that is a question for a completely different column. The last part of your question is like eating your cake and eating it! How can we stay on higher offers and not lose a buyer with a lower rating? This answer is simple too … you can’t!
I have heard my mom say this many times … you are either pregnant or you are not! When it comes to real estate, you either have a contract or you don’t! You can’t, at least no self-respecting buyer will allow you to shop under their contract, contract with one buyer and still ask for offers from other buyers, which may be higher, and then just go and dump your current buyer. out of bed! It just doesn’t work like that … or maybe it works on some weird “reality show”! You need to list the house at the price you are willing to sell it for, and then sell it to get bids. The angle we will use from time to time when we think there may be an unusually high demand for a property is to put it on the market and then hold all offers for 5 days. This not only allows for an open house, but also provides significant market saturation and generating traffic and interest in the hopes of accumulating multiple offers that will result in buyers competing for properties. This sometimes works well, but works best when the property is unique, in a high demand price range, or in an area with high demand.
After all, you can look at it the same way as any family, when in the ranks of disagreement … two of you will be right and two of you will be wrong! Sometimes the only consolation is to be right!