How to handle early offers when selling your property
With the property market picking up steam, home owners looking to upgrade are putting their homes on the market. Most desire a quick sale at above market value but put their guard up when there’s an early offer.
Remember, sometimes in real estate, the first offer tends to be the best offer. So, before you knock back the offer for a potentially better one, consider this:
Is the home presented correctly? Is the pricing strategy in line with the market? The agents feedback after the first open house inspection is positive with attendees liking it?
If the response to those questions is favourable and a buyer makes an early offer, suddenly the nervous energy shifts. Is it too quick? How long should it stay on the market? It's only early, we are in no rush.
Many sellers have learnt that when you list your property in the digital age, the buyers are going through your house virtually. The internet allows literally thousands of potential buyers to scroll through your property photo gallery within days of it being listed online.
Check how your home loan compares
In most campaigns, 75 per cent of the enquiries and inspections will occur in the first 21 days. If you decline the highest offer that comes from this period, you are essentially working in the belief that the best buyer will be in the 25 per cent that enquire and inspect after day 21 of the campaign. In fairness, that could potentially happen, too.
It’s imperative that you know the probability you are relying on when you decline an early offer, though. As a general rule, it’s safe to decline an early offer if it does not meet your or the agent's price expectations.
However, declining a strong offer just because your property has just listed can and often does backfire. And remember, sometimes the first offer ends up being the best offer.
Prior to covid spread in Australia, property market was booming with nearly 30 per cent of sales destined for auction occurred before the big day.
In putting a case forward as to why the early offer should be judged on the price rather than the timing of the offer, there is one aspect that cannot be written about. That aspect is context. Every sale has a different dynamic. Knowing the rules of poker is different to being able to play poker.
Ensuring the early offer is played to the seller’s best advantage is best judged in context. A skilled agent who can actually negotiate will ensure the best decision is made in the client’s interests.
An early offer, from the seller’s perspective, should be considered a good omen as it shows that there’s likely demand for the property. And if the offer meets your expectation, it shouldn’t matter how early in the sale process it was made.
Tell us: Enjoyed this article? Don’t forget to like and share.
And while you’re here, take our mortgage shredder challenge and discover how much you can save on your home and investment loans by using loansHub technology as your personal mortgage manager. To discover why loansHub and what we do, click here.
This article via Which Investment Property does not constitute advice; readers should seek independent and personalised counsel from a trusted adviser that specialises in property, a tax accountant and property design specialist.