One of the most difficult decisions for a seller to make is whether or not to accept the written offer that they have on your property. Naturally, if its’ a full price offer you’d be delighted and, provided the terms were fair, you’d sign and pop open the champagne!
But if the offer isn’t full price, then how do you determine whether or not to accept it?
There will be a number of factors to consider. Here are some you would want to take note of:
- How does the offer relate to the research that was provided to you on recent sales and the current market value of your property? When determining your list price, you would have considered this current market information – what’s recently sold and what competing properties are listed at. Does the offer fit into the anticipated market value range?
- What feedback have other buyers given on the value of your property? A skilled agent will always extract an opinion from a buyer on your property value, even if the buyer isn’t interested in purchasing the property. Remember that buyers view many properties and often are very accurate when it comes to estimating market value.
- Has your property been properly marketed so that you have been exposed to the majority of buyers in the market? In other words, is this offer really the best offer on the day? If you haven’t had proper marketing it may be that most of the buyers are unaware of your listing. The offer you have may not be the best offer in the market. On the other hand, if you’ve had strong marketing and many inspections, this may well be the strongest offer today.
- Is this the best offer this buyer can submit? Ask your agent if the buyer has indicated there is room to improve his offer. This is when you need the agent to work for you, not against you – and it’s most likely to happen when you have a sole mandate with an agency. It may well be that the buyer can improve the amount of his offer, in which case you may consider making a counter-offer. But a word of caution – when you counter-offer you are rejecting the initial offer and it falls away – so be sure when you do so.
- If the price offered can’t increase, can the terms improve? If the sale is conditional on another sale or other conditions, can these be removed? Can the finance amount be reduced? Can the timing of the transfer or occupation dates be changed to suit you better?
Don’t conclude that there will always be a better offer out there – even if it’s your first offer. If your property has been well marketed to create buyer competition, and your agent has worked the buyer up to their maximum, you probably have the best offer available today. And that’s the peace of mind you deserve.
Principal, Harcourts Platinum