Why don’t they just make an offer?
A question that pops up over and over again in real estate is why don’t they just make an offer? A house is on the market and buyers are acting cautious. They didn’t like the corner lot, the steep driveway or the busy street. Unfortunately, aspects like these are out of our control. Perhaps there has been a parade of potential buyers but nobody has made an offer. Of all the excuses mentioned above, none are the real reason that the house hasn’t sold.
There is only one thing that sells a home and that is VALUE.
Value is the relationship between the asking price and what the home has to offer. It is possible that a buyer will fall passionately in love with a home because it is so unique and perfect that they will chase it even if the price is too high, but 99% of the time we have to represent value in order to attract a buyer.
- Is your property located on a busy street?
- Does the house have an odd layout?
- Is there a fish factory behind the house?
If you ask the same price as homes without these challenges you may get lots of showings, but no offers.
But WHY don’t they just make an offer?
Potential buyers are often known to be cautious with a house if there is anything extraordinary about the property. Buyers will often prefer to make an offer on a house listed at the same asking price as a property with challenges, but on one without the extra special features. Buyers usually have a static amount they figure they can negotiate off the asking price, and whatever that number is they tend to apply it to the asking prices of all of the homes that they look at. This means that for potential buyers the two homes would work out to the same selling prices.
Why would they make on offer on the house that has more challenges and that they don’t like as much? Even if they were going to write a lowball offer, why wouldn’t they start with a lower offer on the house they like better? They often do and get the house, but likely end up paying market value.
But wait! That house down the block was willing to negotiate $20,000 lower than the one that they bought! How is the buyer supposed to know that?
The listing REALTOR® isn’t allowed to tell a buyer that. Often sellers have an issue that they can’t change and the problem is solved when they reduce the price and restore that all important aspect – value.[su_divider]