Multiple offers are typically generated on a property that is perceived either as an “exceptional value” or a great “opportunity to create value in the near future“. Multiple offers are a sign of a strong buyer demand that outpaced available inventory.
In either case, preparation and choosing the right go-to-market strategy are key. The seller must present the home in its best light including staging, de-cluttering, and minor home repairs, market it aggressively in multiple channels, with a comprehensive showing schedule, and price it carefully.
If the initial response from the buyers is strong and there is confidence that more than one party is interested in pursuing the home, then the seller can request that any and all offers be presented on a specific date. This typically ensures fair conditions to all parties and the best selling price and terms. If this strategy does not pull in a buyer, then back tracking can make the price appear to be out of step with the perceived value.
One strategy is to list a home for sale at a price significantly under market. However, when this is done, many buyers can come to the table with unrealistic expectations. This competition can also breed a fair amount of uncertainty and discourage would-be buyers from making an offer.
However, even in a market where inventory is low, buyers are aplenty and the when majority of homes sell in record time, there are homes that “sit” or don’t sell at all – simply because of the wrong price, no marketing strategy, and lack of appeal to buyers.
There are three important elements in real estate marketing campaign:
Recent comparable sales establish an asking price that will encourage buyers to compete for your home. Pricing based on sold properties determines the market value. Value is based on what a buyer is willing to pay and not on what a seller feels it is worth.
A home must be clutter-free and furnished in such a way that it neutrally presents a picture of stylish serenity. Before you list your home for sale, it is extremely important to have it thoroughly deep cleaned. This is the time to start packing up all your personal things and emptying out closets, and simplify your decor. In order to present your home in the best light, your home needs to be staged so that does not detract a buyer and instead attracts a buyer to visualize their life in their new home. Photos, personal clutter, daily living, all need to be cleaned up and put away so that the home is in showroom/ model home condition. This includes odors, sounds, cleanliness, free of pets, toys and normal daily clutter. The home needs to be ready to show at all times.
Developing a marketing strategy is paramount. It is not enough just to take some photos, write a paragraph and place the listing in MLS. Developing a marketing strategy includes telling the story about the property, what makes it have value, what makes it different than other properties. Once you know the home’s story it needs to be shared with agents and potential buyers.
All forms of online marketing through blogging, sending email blasts to real estate agents in target markets, sending out information in newsletters, articles, online social media: Facebook, Twitter, YouTube, Pinterest etc need to be planned and time released.
It is also important to set clear guidelines for buyers and their agents about when the house will be shown and when offers will be heard.
Today’s buyers are more tech savvy than the typical real estate agent and in order to be able to speak to tech savvy buyers, an agent needs to be comfortable with technology and implement the tools where buyers do their own research.
While sellers often hope to have multiple offers, in our Santa Fe & Taos Ski Valley real estate market, this rarely happens. Having unrealistic expectations from the sellers, often keeps all buyer offers from coming forward. Pricing a property to sell is the key to getting any offer.
It is important to remember only one offer and one buyer can succeed in purchasing a home.
If you or someone you know is thinking of buying or selling:
What I do for my clients is invest my time consulting, marketing, negotiating, and overseeing the details of their transaction so they will have a superb experience that causes them to want to introduce me to the people they care about most.
The purpose of my business is referral, which means I must bring my clients so much value that they feel comfortable introducing me to the people they know who need my help.
After all, a referral is sending someone they care about to someone they respect and trust.
Contact me, Dianne McKenzie for your real estate transactions & let me help you manifest your dreams today!
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