Perfect timing for sellers, buyers and real estate agents
The other day I started thinking about the timing in which things happen in real estate. This was after we entered into a few bidding wars with other buyers on Hilton Head property. In thinking about it, there is a perfect order for real estate sellers, real estate buyers and real estate agents that goes something like this.
It is always best to be the First one sold ~ This rule applies to sellers that have many neighbors in their building or on their street for sale. The first sold in most cases gets the highest price because all the neighbors recognize the sale and all adjust their prices based on this activity. What happens than is competition for buyers at this new level now takes place and sooner or later someone adjusts lower again. In a market with a lot of inventory it is always best to be the first sold.
It is always best to be the Second offer on the table ~ This rule applies to buyers that find a great deal. If you are making an offer on the property that already has an offer in place, you know that you have to be competitive in order to win the property from the first bidder. In many cases the first bidder starts negotiation lower than they would if they knew another offer was on the table. Often the first offer has a longer way to move up and the second offer ends up with the property.
It is always best to be the Third Realtor ~ This is a rule that applies to real estate agents. The agents that are fortunate enough to be the second or third agent to list a specific property typically have seller’s that are very willing to list at fair market value or make necessary improvements to the property in order to get it sold. Time has shown these sellers that buyers will not pay more than fair market value and will often pass on a property that needs work.
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