OK, help me out here. I'm puzzled as to why a seller wouldn't jump for joy at an offer that it over asking price, large down payment, pre approval and 30 day closing?? Only one offer, not multiple offers. You say they're hoping for an even higher, better offer? My question is, "is that always a prudent move" ? Before you answer, think about this.
It is said that the first offer a seller receives is normally the "best" offer. If you get multiple offers at the same time, and the buyers and their agents "know" there are multiple offers, you'll likely get some excellent offers and one or more may even be over asking price (in the hopes that their offer will be the highest and best). But when you only get one offer and that offer is over full price and excellent terms, it seems foolish for sellers to drag their feet and not respond quickly. To hold on to that offer and not respond in a timely manner "may" suggest to the buyers, that "the sellers are hoping to pit their offer against any other that may come in"..... which may or may not be the case, but if you were a buyer and your offer wasn't responded to right away, what would you think? And usually, when a buyer makes an offer they're very excited to learn whether theirs was the accepted offer. When I've written offers for buyers, they're on pins and needles anxiously awaiting word. Sometimes they're disappointed, but if they do get the house and their offer is accepted, they're delirious.
It's never easy to determine what would be the "successful" offer if you're the buyer and there are multiple offers. It's equally challenging, if you're the seller, to know when to "counter" if it's not exactly what you were hoping for. In this market, with low inventory, it's not an easy decision for the buyer or the seller. Sometimes the highest offer doesn't necessarily mean it will end up being the "successful" offer if the house doesn't appraise at that value by the buyers' lender. You could offer $600k on a $570,000 listed price, but if the house doesn't appraise for $600,000, based on recent "comps" you're back to square one. The seller doesn't have to sell and the buyer doesn't have to buy. So you may have lost 2 or 3 weeks time "waiting" for the appraisal to be completed by the buyers' lender, and you're back to the negotiating table. IF there were multiple offers on that particular sale and IF the buyers are putting several hundred thousand dollars down, the lender may excuse the appraisal if they're comfortable with the buyers ability to repay the loan. It's a crap shoot though, because the buyers still have the option of backing out if the property doesn't appraise at the selling price. (*And sometimes buyers make higher offers in order to get the house and then nickel and dime the sellers once they do their home inspection...thinking the sellers owe it to them being they came in at a higher offer.)
Because a seller gets an offer within a week or so after going on the market, doesn't mean a house was under-priced. It means buyers have access to umpteen million websites showing houses that meet their criteria for location, size, price, etc. and they're ready to jump on a listing that meets that criteria. They don't have to watch newspaper ads, head to every open house, or wait for their agent to call. They see those properties the minute they hit MLS because they've signed up online to get those alerts. They're watching and they're ready! If you don't believe me, ask any prospective buyer how they're finding new listings. In fact our deadline for putting ads in newspapers is often a couple weeks "out", and by the time the ad comes out , the house it usually in escrow already! Great news for sellers but not so good news for newspapers.
Just wanted to give you something to think about, whether you're a buyer or a seller. Trust your instincts and trust your agent.....make it a win-win whether you're a buyer OR a seller. It's an exciting time for both of you!
