M
arket Insights
Don't be fooled by the "early bird" myth - being first to market doesn't always guarantee success.
As a Realtor, I've learned that being an early riser and adhering to the old adage "the early bird gets the worm" can be beneficial for productivity. However, in the highly competitive Bay Area Real Estate Market, being early isn't always an advantage.
Recently, we've received numerous unsolicited offers from a particular agent who works with large developers. These offers often come within minutes of our listings going live online, and they're usually lowball prices that don't reflect the true value of the property. This is a problem in areas where housing stock is scarce, and institutional buyers are changing the game.
In 2021, institutional buyers purchased around 13.2% of residential properties, and a recent study by Redfin found that investors bought about 19% of U.S. homes sold during the first quarter of 2024. This means that competing against large institutional buyers is tough for younger buyers trying to break into the market.
Dealing with institutional buyers can be challenging. They expect offers to be presented within 24 hours, often without doing any due diligence or research on the property. This can lead to anxious sellers jumping at the first offer they receive, rather than waiting for a more informed decision.
As Realtors, we wouldn't encourage sellers to take these uninformed offers. Instead, we recommend that sellers wait for market-tested offers that reflect the true value of their property. While preemptive offers can be an elegant solution in some cases, they're rarely easy and often come with uncertainty on both sides of the transaction.
In short, there's a time and place for early offers, but only if the property has been fully investigated, the price is right, and the buyers are qualified and patient. Otherwise, we won't be doing business with them.
How can we help you?
Julie Gardner & Sarah Abel | Compass Realty
We're not just Realtors - we're consultants who take care of your home as if it were our own.
