Buying and selling a home is not like buying milk at the supermarket. Milk, or other consumable products commonly found in grocery stores, are more or less the same, so determining their market value is not that difficult. Properties, however, have more features that make them different from other houses. No two houses are exactly similar in value, and even if they are side by side each other in the same street, it’s highly unlikely that they will be priced the same. This is the reason why selling a house is more challenging.
This isn’t the end of the story. Selling a house becomes more challenging because you have to decide if you are going to take an offer from a prospective buyer. Everyone wants to get a better deal from what they’re buying, and in most cases, is also the same philosophy that a buyer believes in when it comes to purchasing a home. They say that a house is only worth what the buyer is prepared to pay for, so how do you know if you are getting a fair offer that would make you and the buyer happy in the end?
The answer is in the first offer.
Understanding Buyers Psychology
Many agents believe that the first offer that a buyer gives should be something you should take seriously. Put yourself in the shoes of a buyer. Serious real estate buyers often share one common trait: involvement. This means that they go out there and test the waters, doing research to find out the best prices for real estate. They are the ones who go out of their way to check out prices, visit open houses, or even hire real estate agents just so they make the right decisions. They are the ones who do their homework first before jumping in the water.
The Serious Buyer
Serious buyers are the same people who — once they’ve narrowed down their searches — start to get serious and can get more engaged in the whole process. They often contact their mortgage lender or broker to see if their mortgage can be approved. They may also start to learn more about the market and check the prices of different properties. In short, their involvement makes them knowledgeable about the real estate market. They can tell if the property you’re selling is priced right and if it meets all the criteria they’ve set up before purchasing a house. So you can bet that once they make an offer, it’s highly likely that the figure they’re giving is well-thought out and fair.
Taking It with a Grain of Salt
Of course, this is not always the case, especially if you can’t really tell the buyer’s level of involvement. One important thing before you use this technique is to first distinguish a serious buyer from the rest. Once you are able to zero in one from the rest of the herd, then you can seriously consider their first offer confidently.
Selling a home may be difficult and challenging, but you can get far more than what you’ve invested in if you play your cards right. Understand your buyers and their level of involvement, and you will be able to get the best deal that you and your buyer will be happy about.
For more information on San Diego homes other great Rancho Santa Fe Homes, contact Lucy Kelts for a no-pressure real estate consultation.
