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Based on the local market and similar homes that were just on the market, we could be getting 6+ offers in a couple days on market. Part of the reason for multiple offers is that there is normally no similar houses on the market. It's a single family home, of 1600 sq ft, in the best school district in the state in a city where almost all the other single family homes are 3,000-8,000 sq ft. The house will be on the market in a couple weeks.
Just assuming this will be the case, how should we handle the offers? If we put the house on the market on Thurs, should we say anything like we will wait to respond to offers on Sat?
As a potential buyer who has been facing bidding wars, in my area, it seems the house goes on the market by Thurs and they give until early the following week for best and final offer. You'll probably get the most people looking over the weekend, so you'd probably want to decide on Monday.
Based on the local market and similar homes that were just on the market, we could be getting 6+ offers in a couple days on market. Part of the reason for multiple offers is that there is normally no similar houses on the market. It's a single family home, of 1600 sq ft, in the best school district in the state in a city where almost all the other single family homes are 3,000-8,000 sq ft. The house will be on the market in a couple weeks.
Just assuming this will be the case, how should we handle the offers? If we put the house on the market on Thurs, should we say anything like we will wait to respond to offers on Sat?
As always in real estate, local custom and experience will decide, but I wouldn't say anything about waiting to respond to offers. All that does, in my experience, is tell people to not bother putting in their offer until just before that deadline. I would show the house and let people make whatever offers they want. Then, depending on the number of serious offers you get, you can decide how to proceed.
Not sure how you are pricing the property, but, if you get 6+ offers in a few days, one might think you were underpriced. You will rarely get more than you ask ... or at least, it is very difficult to negotiate upwards from your asking price. My thought is that if the market is as 'hot' as you suspect, list it for a higher price. That doesn't prevent potential buyers from offering less, and gives you room to move up. Your property is worth what someone is willing to pay for it, NOT an average of listing prices or what a Realtor says it is worth.
Sit with your realtor and asses the 'quality' of each offer.
Select the one which you feel most comfortable with...not necessarily the highest price. Consider: best chance of getting financed, soonest to close, least contingencies, best fit for your neighborhood (and neighbors), mostly likely to live in house....things which matter to YOU.
It's a dynamic process; have a framework, see how it goes.
Since the house is significantly different from most others in the neighborhood, you may not get the best offer possible from a rapid competitive bidding situation. IE: you're limiting your buyers to a smaller pool and perhaps not making it available to a buyer willing to pay more.
If you have a good agent and they recommended underpricing to generate multiple bids, they probably know what they're doing. Keep in mind though it's in the agent's best interest to get a quick sale, not necessarily the best price.
Congrat, you have an affordable house (relatively speaking) in an otherwise expensive and highly desirable neighborhood. This type of house usually attracts buyers who typically don't look in your area because they don't think they can afford it, in addition to those already looking in your area. So it's common to see higher than usual interest for a house like that.
Here's one strategy that I've encountered that I thought worked pretty well for the sellers:
Have open houses for two consecutive weekends. Say that offers are due by (this) date. After all offers came in, go back to all the buyers and say, we have multiple offers so we're giving you a chance to up your offers, pls submit your updated offer by this date; you can also leave your offer as is. Those who really want the house will come back with even better offers.
Also, make sure to say in the listing description not to disturb the occupants. A desirable house such as yours typically attracts a few drive-by door-knockers. If you won't be having an open house during the weekend immediately following the listing day or if you plan on showing the house for more than a one week period, put that in the listing description because some buyers see that your house is on the market for more than a week and may think there's something wrong with it.
You may also receive personal letters along with some offers that try to sway you with the buyers' personal stories, usually include pictures of cute kids and pets. I'd take those letter with a grain of salt because they aren't always as truthful as you think.
As always in real estate, local custom and experience will decide, but I wouldn't say anything about waiting to respond to offers. All that does, in my experience, is tell people to not bother putting in their offer until just before that deadline. I would show the house and let people make whatever offers they want. Then, depending on the number of serious offers you get, you can decide how to proceed.
i see what you're saying about not giving a deadline
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