Early offer paralysis

Posted on 10th March 2015

Everyone wants to sell their property quickly because the alternative could well be a long, drawn out process that is wearing to all concerned. Plus, we already know that the longer a property is on the market, the harder it is to sell, at least for a premium price.

Sometimes we receive offers on properties that have only been on the market for a short period of time but for some reason vendors quite often reject such offers stating that the "property has only just gone on the market, it’s early days and they have the mentality that if a buyer is willing to offer this much so early in the marketing campaign then there must be a higher offer round the corner" – it’s a trap that people can understandably fall into as ultimately everyone wants the best price for their property.

When properties first go onto the market they generate the most attention than at any other stage.  Rightmove statistics show that in the first two weeks of marketing, a property receives three times the attention to what it achieves in weeks three and four, and in a market where prices are not rising, your property is not going up in value.

It’s very early on that competition to buy your property is at its peak and when anyone who has 'fallen' for your home will make a move quickly by submitting offers. You’ll almost always receive the highest offer in the early stages because it’s then that buyers are fearful of missing out on it. So, whatever you do, don’t fall for ‘Early Offer Paralysis’.

Instead, make a considered judgement, taking into account the advice from your agent on whether or not an early offer should be accepted. That way you’ll know that you’ve sold at the optimum time to achieve the maximum price.

So when you receive a strong offer early on, you really should carefully consider taking it. Many times we have seen vendors reject an early offer and then regret it later. Once it’s gone, it’s gone.