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Every once in a while, I notice that a seller has accepted the first offer that comes in from a potential buyer. This is not a good selling strategy!
The listing agent has a fiduciary responsibility to YOU, the seller, and I don’t believe the seller benefits from accepting the first offer. The optimal situation in a sellers’ market is generating multiple offers to drive up the price. The only exception to this would be a very, very strong offer with exceptional terms.
Talk to your agent about your strategy and countering terms before you hold an Open House!
By waiting to review multiple offers, it gives YOU, the seller, an opportunity to asses all of them them and counter back with an intelligent request. Let’s say you hold two weekend Open Houses to the public and then one during the week for the agents, maybe a Tuesday. Interested parties have a chance to view your home and respond by a specific date and time. At that time, YOU can sit down with your listing agent or negotiator and review all the terms of all of the offers. Hopefully, your agent has compiled all offers into a summary or spread sheet so you can easily review them. Look them over carefully and with the help of your listing agent, make counter offers to the top 5 or 6 strongest offers.
The counters are written with the purpose of separating those buyers who are serious about committing to the purchase from those who are not. Common terms of a counter include the request of a price point or best and final offer, shortened contingency periods, request of a leaseback and confirmation of vendor choices.