Does a quick offer mean you priced too low?

Tips for Home Owners
There are generally three pricing strategies a homeowner can go with when selling their home: optimistic, realistic, and motivated. An optimistic pricing strategy is basically a nice way of saying "over priced". This strategy is employed by many homeowners who just want to try and see if they can get their price, and is followed by a series of price reductions. A realistic price is one that is in line with recently sold comparable homes and your current competition. A motivated homeowner may price their home below market value to generate a quick sale or to try and get multiple offers.

Following these definitions it is easy to understand why a homeowner might think they under-priced their home if they get an offer (or two or three) after just a day or two on the market. However, a quick offer does not necessarily mean you've priced your home too low.

The first few days that your home is on the market should be your busiest, if not there is something wrong with either your price or your marketing. Why? all the buyers that are alreaady looking for a home like yours are going to come and see your home as soon as they can - they've already seen and dismissed all the other similar homes for sale. They've done their research and will be ready to make a decision quickly. If you're well priced and marketed, and your home shows well, there is a good chance you will get an offer  from at least one of these buyers.

If you don't get any bites from these buyers, you may have to wait for new buyers to enter the market. These buyers are just starting their search, and need to see all the homes they can afford that meet their basic needs. They need to do their research so it takes them longer to make a decision.

So in the end, a quick offer probably means you were priced well, you were well marketed, and you did a good job getting your home ready for showings and fewer interruptions to your family schedule.

by Sara Maclennan