Heuristics

There is a saying in real estate that the cheapest you can buy a house is the day before a second offer is made on the same house.

That obviously has more credence in a rising market than in a falling market, but it is still possible to miss out on a favorite home by delaying too long. I know that Buyers believe that Sellers are so anxious to sell that they will accept anything, and that there is no competition – but that does not always hold and particularly for exceptionally desirable properties.

Well priced, clean properties in nice locations will always draw a crowd.

On the other hand (I feel like a lawyer), not all Sellers can count on getting a single offer, much less multiple offers.  It is a judgment call, and gambling can add months to the length of a sale and loss of thousands of dollars in a dropping market.

Obviously every situation differs because all situations are different, but the rules of thumb hold. It is much like I have always preached in computers – there are industry standards, and it is possible to deviate from them but you had better have a damn good reason, know the downside and be willing to accept them.

There are rules in every industry – not rules written in stone and handed out on the top of mountains but natural rules developed from many years of experience – much like typesetters learned from years of experience their rules which desktop publishers didn’t ever learned and produced, and still produce what is known as “laser crud.” You probably don’t know that there is a cultural difference in what Europeans and Americans expect to see as a typeface in Headlines and body copy, but typesetters do.

The real estate industry has heuristics, or rules of thumb as well. Buyers and sellers don’t sell or buy often enough to learn the Rules of the Road, and, in truth, neither do inexperienced Realtors.

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