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Real Estate

The pros and cons of the early offer

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I'm a sales strategist turned real estate agent and home renovator.  I like my coffee hot, homes modern and cabins rustic. I'm on a mission to make renvoation easier. 

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Buying and listing  strategies to get you home. 

A house went pending before the offer review date, why?

Buyers tired of getting outbid on offer review days have resorted to writing disruptive, “take it off the market today” offers. When homes new to market with an offer review date go pending early, that’s probably what happened.

The best coined term for the early offer I’ve ever heard? “The bully offer.”

Even when an offer review date is published, there’s a little secret. The listing agent is legally obligated to present offers received to the seller (at least in Washington State). So even if early offers are discouraged, they must still be passed along.

When that happens…

Sometimes agents pull the offer review date forward when an early offer comes in, and call everyone that has toured the home already. Sometimes sellers “just want it done” and accept the offer on the table. These offers play to the human desire to have a “bird in the hand” rather “than three in the bush” because multiple offers come offer review day are never a guarantee.

Whether you’re a buyer or the seller, there are pros & cons to early offers:

Buyer Pros

Win without all the competition

Lock in a contract

Make the seller an offer they can’t refuse

Certainty

Buyer Cons

Offer needs to be compelling

Competing against yourself – you might pay more than you need to to win early

Potential to pay more than necessary

Showing your cards early – you may get shopped around

The early offer can become the new price floor

As a seller, it is tempting to take an early offer. So why call it a bully offer? Well, the buyer is putting pressure on you to make an early decision without all the information. The advantage of accepting an early offer is having a done deal. The downside is one will never know if money has been left on the table by accepting early.

Seller Pros

Certainty around price

Getting under contract quickly

Multiple offers are never guaranteed and offers may not escalate as high as the one on the table

Seller Cons

Money left on the table – someone else may have paid more for your house

Opportunity cost: a better offer may have arrived

Not ever knowing how it would have played out

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A WOMAN OF MANY HATS RENOVATOR, STRATEGIST
REAL ESTATE AGENT PHOTOGRAPHER & Driver of a little black BEETLE

Hi, I'm Julie.
Magnolia local
 & real estate agent.

I'm obsessed with renovation, design and a well appointed hat.  I love connecting my love of photography with helping buyers find their way home. 

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