First Offer Syndrome
Selling in a reasonable timeframe is every genuine vendor’s aim, second only to selling for the best possible price. Yet most agents say that the hardest sale to make is the one that comes along in the first days of marketing.
We often find that inexperienced vendors are often unaware of the mechanics of the marketing process. They think that purchaser one is prepared to pay $200,000 in the first week of marketing, then purchaser two will pay $210,000 next week. They say things like if the first inspection brings in this sort of response, what will the second one bring? – as if price increases incrementally with time.
Vendors should be aware of the processes that are set in motion when a property first comes on the market. A property attracts the greatest amount of attention when it is first offered. All the purchasers that have been looking for their ideal home for weeks and months converge eagerly on a new listing.
These are the qualified purchasers – the ones who have done their homework and know exactly what their money will buy. New listings attract numbers of qualified buyers. And this demand creates the climate that generates the highest offers. This is the time when a purchaser falls in love with a property and will be afraid that someone else will snap it up before they do.
The longer a property is on the market at a given price, the more sense of competition fizzles out and the more likely subsequent purchasers are to feel they have plenty of time to make up their minds. The feeling that time is on their side gives purchasers the psychological edge.
Basically they feel they can afford to offer less with more chance of getting a bargain. It’s not hard for them to work out that a property is getting stale.
A property starts to go stale once all the qualified purchasers have inspected it. Those who come on the scene subsequently are new to the market place and have yet to work out what their money will buy. Naturally, new purchasers are unwilling to commit themselves until they have done their homework.
In the final analysis, the vendors’ two main aims are not separable. They are two sides of the same coin. Selling for the highest price usually means getting serious about that earlier offer. Vendors who fall victim to First Offer Syndrome often regret their earlier refusal to negotiate when they discover that further down the track they end up selling for less.