Dear David,
We retired four years ago and started our search for the perfect downsizing home. We finally bought a property last week and put our current house on the market. Our agent advised us to hold offers, but we just received an early offer with a great price and no conditions. Should we jump at this opportunity, or wait to see if something better comes along? – UNSURE
DEAR UNSURE: Downsizing can be a long process, but it sounds to me like you’ve already done the lion’s share of the work. You’ve figured out where you’re going next, put your current house on the market, and followed your agent’s advice. You were so well prepared that things came together faster than expected, which caught you a little off guard. Now you’re worried about potentially missing out if something better comes along.
Understanding the dynamic of pent-up demand may help you to make a decision. Think of the real estate market like a railway crossing. When a buyer can’t find what they’re looking for in existing inventory, the proverbial gates go down in front of them and they’re stuck waiting for the next listing to come along. Other buyers are also facing the same problem, so traffic starts piling up. When a new listing hits the market, it’s like a train going by. The gates go up, and there’s an immediate rush of showing traffic from educated buyers who have already seen what’s out there and are looking for a home that checks all their boxes (you were part of this group until last week).
This initial rush tends to be short lived. Soon enough, the backlog clears and the pace of traffic returns to normal, just like at a railway crossing. It sounds like you were lucky enough to find a buyer amongst those waiting for the next listing to come down the track. Because your buyers understood the market, they were willing to submit an attractive offer with a timely closing and a bonus of no conditions, in hopes you would look at it early.
It’s human nature to wonder if you’re leaving money on the table, especially when things come together quickly. I’ve seen plenty of clients in your position choose to wait things out, and later wish they had a second chance to snag that first great offer. There’s no crystal ball to confirm whether this is the best you’ll see, but if the offer meets or exceeds your expectations, I’d think twice before letting it go. Once you’ve exhausted your initial wave of buyers, the only way to attract a new group is to lower your listing price.
PRO TIP: When I’m working with sellers, we always discuss expectations surrounding the price, closing date and types of conditions we’re likely to see on incoming offers. If a listing is prepared and executed properly, there’s a good chance we’ll get an offer from that initial wave of buyers. Once the pent-up demand clears, showing traffic in any price range often fizzles out to a buyer here and a buyer there, just like at a railway crossing. When showings are disrupting your daily routine, these extra weeks on the market can feel like a month of your life. #Advice #AskDavid #TheNegotiator
David is a top-selling Broker in Kitchener-Waterloo Region. He works personally with you when selling or buying your home. Call or text today for your free home evaluation! 519-577-1212.
