Mortgage brokers and real estate agents report a surprising trend, not only in the Rockingham, Kwinana and Baldivis areas but across the real estate market in general — the first offer a seller receives on a home is, more often than not, the best offer he or she receives.

This flies in the face of most “wisdom” involving negotiation but there is a logical explanation for it. Many real estate professionals believe that buyers start the process logically and finish it emotionally, while sellers start the process emotionally and finish it logically.

In other words, when buyers search for a home, they tend to look at market statistics and have a good idea of what they should pay for the home they are looking at. On the other hand, sellers tend to start their price too high and don’t drop their price until the home doesn’t sell and they become frustrated.

Agents encourage sellers to take first offers seriously because the first offer may indeed be the best one and it may be coming from someone who has been looking for a home for a while. Professionals feel that the most common mistake sellers make is turning down potential buyers in the beginning because they have an inflated opinion of the value of their home.

It is recommended for a seller to sit with the agent and ask relevant questions about the buyer, such as how long they have been looking, how much they plan to spend and their reasons for buying the home. If the answers line up correctly, there is a good chance that this buyer is making the best offer the seller will see on his or her home.

The price may be less than the seller wants but it is often wise to take that first offer. Not only might it be the best offer the seller gets but it might also save months of having the home on the market.

If you are interested in talking to an experienced mortgage broker about a home loan in the Baldivis, Kwinana or Rockingham areas, please call 0400 204 408 today. With access to over 20 lenders, we can help you find the right terms for your individual situation.