In the world of Silicon Valley real estate, one of the most pervasive myths is the notion that a seller “only needs one buyer.” On the surface, this statement might seem reasonable. After all, a home only sells to one person or family. But when you dive deeper, it becomes clear that this mindset is not only misleading but can also be detrimental to sellers looking to maximize the sale price of their property. In reality, you want many buyers competing for your home. You want to create an atmosphere of demand that positions your property as the obvious, must-have choice in the market.
The Danger of “Only Needing One Buyer”
Let’s start by exploring what happens when there is only one buyer for a home. If a seller subscribes to the belief that finding just one buyer is enough, they often relax their efforts in presenting, marketing, and pricing the home. Once that single buyer shows interest, there’s a false sense of relief. However, this situation puts the seller at a significant disadvantage during the negotiation process.
Consider what that lone buyer is likely thinking: “I’m about to buy the house that nobody else wants.” That perception immediately impacts how they view the value of the home. If no one else is vying for the property, the buyer will automatically assume the price is too high (because if it weren’t, there would be other buyers for it). This weakens the seller’s position. Instead of competing with other buyers and feeling pressure to make a strong offer, the sole buyer has all the leverage. They can offer less, ask for concessions, or demand repairs that might not have been an issue in a competitive bidding scenario.
Worse yet, that buyer can always walk away, knowing that they aren’t missing out on a hot commodity. After all, no one else is showing interest. Why should they feel rushed or obligated to meet the seller’s price? In short, when there’s only one buyer, that buyer is in the driver’s seat. You as the seller can expect to be raked over the coals in this situation.
How Lack of Competition Affects Perceived Value
One of the fundamental principles of economics is that demand drives value. When more people want something, its perceived value increases. Conversely, when there’s little to no competition, the perceived value drops. Real estate is no different. The myth that “you only need one buyer” overlooks the essential fact that competition for your home is what fuels higher offers and better terms for sellers.
When there’s only one buyer, the scarcity of interest creates doubt in the buyer’s mind. They may wonder why no one else is interested in the property and begin questioning the home’s value to them, to speak nothing of potential resale value. That doubt directly affects how much the buyer is willing to offer. They may feel emboldened to offer less than asking, or worse, they may back out entirely in favor of another home if they find even the slightest issue with the property during their inspection period, or there are any hiccups along the way such as an appraisal issue.
On the other hand, when there are multiple buyers interested in a property, the psychology shifts. Buyers begin to see the home as a valuable commodity — something that others desire and are willing to fight for. This reinforces the perceived value of the property in their own mind, if only subconsciously. This competition creates a sense of urgency, leading buyers to put their best foot forward with strong offers, often above asking price, just to secure the property before someone else does.
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The Impact on Negotiations
In a scenario where there is only one buyer, negotiations favor the buyer, not the seller. When a buyer knows that no one else is in the running, they can take their time and push for concessions. They might ask for price reductions, request repairs, or make demands that a seller in a competitive market wouldn’t have to entertain.
Let’s compare this to a situation where multiple buyers are interested. In a competitive bidding war, buyers are far less likely to ask for discounts or unnecessary repairs because they know that the seller has other options. The fear of losing the house to another buyer forces them to make a clean, strong offer. In these scenarios, the seller is in a position of strength and can often dictate more favorable terms.
When there’s competition, the dynamic of negotiations shifts in favor of the seller. Multiple buyers create a sense of scarcity — there’s only one house, but several people want it. Buyers don’t want to lose out, and this competition motivates them to be more flexible, offering better prices and fewer contingencies.
Why Sellers Need to Abandon the “One Buyer” Mindset
For sellers who cling to the belief that they only need one buyer, they run a high risk of selling for a lower price than they would command in a competitive sale scenario. This “one buyer” mindset encourages complacency. A seller may think that once they find a single interested buyer, their job is done. However, without fostering broader interest, they’re likely leaving money – a lot of money – on the table.
Sellers should instead aim to attract many ready, willing, and capable buyers. The goal should be to make the home irresistible and generate as much demand as possible. This creates an environment where multiple buyers feel compelled to compete for the property. In such a scenario, the seller not only increases their chances of receiving offers quickly, but they also have the opportunity to select from a pool of strong offers, often resulting in a higher final sale price and more favorable terms.
How to Attract Multiple Buyers
Attracting multiple buyers isn’t about luck. It requires strategic planning, effective marketing, and a deep understanding of the local market. Here are some key strategies to ensure your home attracts a large pool of interested buyers:
Proper Pricing
Price your home competitively from the start. Overpricing can deter potential buyers, leading to fewer showings and a longer time on the market. A well-priced home, on the other hand, attracts more interest and may even spark a bidding war. In fact, in Silicon Valley and the greater Bay Area, bidding wars – or at least bidding skirmishes – are quite common. You should trust the power of the market and the law of supply and demand to help deliver you the best price the market will bear.
Often times, sellers don’t believe in the power of the market. They believe their home is unique, and for whatever reason, market forces don’t apply to it. But the truth is, every home is unique, in some way. But the law of supply and demand is a law, and it applies everywhere, at all times, to all types of property, no matter how “unique.”
The cold hard truth is that the price you ask for your home is the first and most important part of your marketing strategy. If you get the price wrong, there’s very little else you can do that will get multiple buyers in your door and writing competitive offers to boost the sale price.
Home Staging
Proper presentation is everything. Staging your home to highlight its best features and appeal to a broad audience can make a huge difference in how buyers perceive its value. A well-staged home creates an emotional connection for buyers, making it feel like a must-have.
When sellers hear the word “staging,” they think of renting furniture. That may be a part of staging, but to my mind, staging is how you present the home to the buyer. That usually includes removing some of your existing furniture, re-arranging what remains, decluttering, cleaning, minimizing whatever negative attributes your home may have, and accentuating the seller features buyers are likely to pay more for.
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Professional Photography and Videography
In today’s digital age, first impressions often happen online. High-quality photos and videos can make your property stand out and entice more buyers to schedule a showing. Drone footage and virtual tours are also great tools for showcasing your home’s features.
However, there’s something important to consider when posting images and video of your home online: buyers use this digital marketing material to disqualify homes. They swipe through the images online and make split-second decisions if they want to come and see your home, or not, based on what they can see of it. Many REALTORs blithely post images and videos that are likely to reduce buyer interest in the property. They show small and dated kitchens and bathrooms, neighborhood nuisances like high power lines, cramped bedrooms stuffed with furniture, steep driveways, and dark interior shots that most buyers would see as a turn-off.
Better to have fewer photos and a shorter video that work to entice buyers to come in the door, and leave out anything that could create an excuse for a buyer to avoid visiting your property in person.
Marketing Across Multiple Channels
Your home should be marketed across multiple channels, including MLS, email, social media, real estate websites, and even targeted ads. The more exposure your home gets, the more buyers you’ll attract.
It’s important to understand though that the main channel you’ll be leveraging is whatever site a buyer is using to find homes for sale. Zillow commands about 40% of market share for this; Redfin probably commands another 20%, and Realtor.com probably somewhere around 10%. There are second-tier players like homes.com and compass.com where buyers may also be seeing your home – wherever it is that a buyer is getting their feed of homes for sale, this is where your listing must be visible. That’s because this is where the buyers with highest intent are actually looking for properties right now.
The other channels are most helpful because it can expose your property to people who aren’t looking right now – but perhaps they know someone who is. It just helps get the word out, and anything that helps is something worth doing, and doing well.
Highlight Unique Selling Points
Every home has something unique that makes it special. Whether it’s the location, the design, or specific features like a gourmet kitchen or backyard oasis, make sure these selling points are front and center in your marketing efforts.
But you need to consider that many things that make a home unique are not selling points. For example, I once had a listing that had a huge indoor hot tub installed on the 2nd floor of the house. It cost the owner a ton of money to get that hot tub built there, and was indeed very unique. It’s possible that some buyer, somewhere, would want a hot tub like that inside the on the 2nd story of their home. But for most buyers, it was a turnoff. It was something that took up a lot of valuable space, and they’d want to have removed, which would be a big project costing thousands of dollars.
Needless to say, I included no photos or video that showed the hot tub did not appear anywhere in the marketing or marketing copy. Carefully consider what are the actual elements of value in the property, and make sure to highlight those values primarily, or even exclusively.
Hosting Busy Open Houses
Open houses can help generate interest and create a sense of urgency. When potential buyers see others walking through the home, it reinforces the idea that the property is in high demand. Of course, this is only true when you actually have visitors at an open house. If a buyer shows up and they’re the only one at the party, what are they to think? Awfully quiet around here.
The first open houses are the most important of all. You really want to make sure those are well-attended, so they should be well-publicized and promoted within an inch of their lives. Ideally, you would only need one weekend of open houses, if you have priced your home strategically and have crafted effective marketing.
The Power of a Competitive Market
When you successfully attract multiple buyers, you create a competitive market for your home. Buyers are more likely to make stronger offers and avoid unnecessary contingencies because they know they’re competing with others. This competition often results in a higher sale price and more favorable terms for the seller.
Additionally, a competitive market instills confidence in buyers. When people see others vying for the same property, it reinforces the idea that the home is a good investment. No one wants to miss out on something valuable, and multiple interested buyers signal that the property is worth the asking price — or even more.
Conclusion: More Buyers, More Money
The myth that you only need one buyer is not only misleading but potentially costly for sellers. In reality, the goal should be to attract multiple buyers who are eager to compete for your home. When more buyers are interested, the perceived value of the property increases, negotiations favor the seller, and the final sale price is often higher.
Sellers who embrace the mindset of creating demand and fostering competition are far more likely to achieve their desired outcome: a faster sale at a better price. By pricing strategically, staging effectively, marketing broadly, and showcasing the high-value features of the home, sellers can position their property as the must-have choice in the market. Ultimately, having many buyers vying for your home is the key to maximizing its value and securing the best possible deal.
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