“My wife and I rent and theres been a house for sale down the street. After driving by it for 4 months, we decided to make an offer. When we did, suddenly the sellers agent said he had another offer. It seems all too coincidental. How often do agents lie and say theres a second offer just to make someone pay more?”
***ANSWER:
Not often, though I know it happens occasionally.
Recently, I was showing homes to some great clients. We made an offer on a stunning home that had literally been for sale for most of 2 years. The next day the sellers agent said she had a second offer.
My clients were understandably dubious and basically said, Fine, if there really is another offer, let them buy it.
And thats just what happened.
OK, so WHY the heck does a home sit for months and suddenly attract two or three offers at the same time?
My theory is that sometimes theres a perfect storm of short term supply/demand fluctuations. Suppose:
John Smith has had his home for sale for 3 months.
Its a little overpriced and getting no real interest. Theres a similar home down the street, one around the corner, and a third one two blocks away, all for sale.
John decides to drop to a reasonable price.
In the next couple of weeks, two of the competing homes sell and the third takes his off the market. No new listings take their place. John has the only house in his category for sale in the area. About that time two new couples become interested in the neighborhood and
Suddenly John has two offers on his house!
Thats my theory. And Im sticking to it.
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