Now that the Phoenix housing market is picking up steam, home sellers in the price ranges all the way up to $600,000 – depending on their homes’ condition and how competitively they’re priced – are starting to receive multiple offers on their listings. Two and three years ago, buyers felt a lot more comfortable making low offers, because they assumed, if sellers wouldn’t accept their offers, they’d at least send back a counter offer.
Today, with multiple offers on the table, home buyers are starting to ask themselves, “Do Phoenix home sellers have to respond to every offer they receive?” More specifically, “Do they have to respond to MY offer?”
The short answer is, unfortunately, no. But let’s look at why…
Although the long answer still starts with “No,” it may be helpful if I share a few reasons below we’ve seen Phoenix home sellers give for not responding to every offer they receive. We don’t necessarily agree with each reasoning, but we do believe that buyers and sellers can benefit from a greater understanding of each other’s thought processes.
* If the home is new to the market – some home sellers consider up to one month as “new” – we’ve heard of some sellers not responding to any offers until the home has been on the market for at least three, five, or more, days.
* If an offer comes in so low (usually more than 10% – 15%) below the current list price, some sellers won’t send a counter offer back to the prospective buyer, because the seller believes there is too much ground to make up to be worth it.
* When a seller receives multiple offers, it simply may not be practical to respond to every offer. If the seller receives more than five offers, for example, often times the seller and the seller’s agent (i.e., Listing Agent) will consider sending a Multiple Counter Offer to just the two or three best offers. And even if a seller only receives two or three offers, he or she may skip the counter offer process altogether if one of the offers is so much more superior than the others that the seller doesn’t want to risk scaring away the best offer.
As you can see, there are various reasons why Phoenix home sellers may not respond to every offer they receive right away. If you are thinking about selling your home, please contact us so we can tell you more about the contract negotiation process and what we, at The Hill Group, can do to get you the best offers possible. If you are thinking about buying a home in the Phoenix area, please contact us so we can tell you what we do to help you find the best home possible and present your offer in the best light.