What Real Estate Agents Do When You Make An Offer

Have you every looked at a house that has been on the market for a month and all of a sudden you are interested in the house and now there are five offers?

There are many different cycles to selling a house. One possible cycle is called the “Over Priced Cycle”

The cycle goes like this:

The house is overpriced to begin with. Like any house that hits the market there is a lot of traffic. Then there is an open house, and there is a lot of traffic. After the weekend there are a few interested buyers despite the price. These buyers submit offers way lower than asking close to comparables. The sellers reject them and all of the similar offers in the next two weeks. They then wonder what is wrong and their agent says to reduce the price. Now that the offers are gone they reduce the price. Now all of that buying pool that looked at the house thinks something is wrong with the house. More time passes.

After a month or so you get a fresh crop of buyers in. They make an offer and the Agent calls all of the buyers agents that saw the house and that were possibly interested to tell them that there is an offer. Now that the price has reduced some of the previous buyers that didn’t find a house might again want to put an offer because there is other interest. Now there are two or more offers on the table.

While being the buyer sometimes can suck, a good Real Estate agent will try to stir up interest if the house has been sitting on the market.

The best thing to do is present the offer in person or put a limited time that the offer is good. This will deter other offers from coming in. If your offer is good enough then the seller will work with yours instead of using your offer to get other interest.

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