“The Plausibility Test”
One of the biggest questions for Buyers interested in making an offer on a particular home is, “who else is interested?” (i.e., “do I have competition?”).
Of course, the ultimate expression of interest is an actual, written offer; if the listing agent has received one (or more) — believe me, you’ll know. See, “Is it Really in Multiples? How to Tell.”
But what if the other agent simply says that the home is attracting strong interest, from one (or more) other prospective Buyers?
That could range from their having already done a second (or third) showing; asked to be “kept in the loop” if another offer comes in; or even be in the process of writing (but not yet delivered) an offer.
Is the listing agent embellishing, or telling it straight?
“Please Keep Me in the Loop”
The quick (if unsatisfying) answer: it depends.
Just because listing agents have been known to overstate interest in a home, doesn’t mean that there isn’t.
As I wrote in my earlier post, the best way to gauge what the listing agent says is context.
–How long has the home been on the market?
–How well does it show?
–How well-priced is it?
–Who is the listing agent, and what is their reputation?
In my experience, homes that are priced to sell, receiving serious interest, and “in the chute” (so to speak) are actually pretty easy to identify.
When that’s the case, my advice to clients is not to look over their shoulder, waiting to see what other Buyers are going to do, but rather to get an offer in before any competition materializes — and (further) strengthens the Seller’s hand.