Receiving your first offer after putting your home on the market can be as nerve-wracking as it is exciting. What if the first offer is the best one? What if you end up selling yourself short?
While achieving the highest price possible is an important goal to have in mind, you should also consider the buyer behind each offer, and how their plans align with yours.
Here are the key things to take into account when weighing up your decision:
Knowing when the price is right
The key thing to consider about each offer you receive is whether the figure reflects a fair price for your home.
This is why having an expert valuation under your belt will put you in good stead from the get-go, as the asking price you set should be an accurate one.
It’s important that the agent you work with can demonstrate expertise in the local market. Your location may have added significant value to your property over the years, especially if the local schools have excellent ratings and there are plenty of nearby amenities.
What is the buyer’s situation?
If your home is relatively new to the market and your first offer proves disappointing, it could be safe to hold out for another buyer who can offer a better price.
However, timing is crucial, as you may be more inclined to accept your first offer if you’re in a rush to get moving.
If this is the case, it’s equally important to find out more about the buyer’s situation before accepting their offer. Does their prospective timeline align with your own? Are they attached to a chain? Do they have a mortgage agreement in principle?
Rash decisions are risky ones, so don’t forget to take your time and seek advice from your agent where needed.
Assessing the terms and conditions
While the price is undoubtedly important, you should also consider the terms and conditions attached to the offer. The suggested completion date, contingencies, and financing details can significantly impact the overall desirability of an offer.
An offer that might appear lower in value could be more appealing if it comes with favourable terms. For example, a first-time buyer can offer a chain-free transaction - a great option if you’re hoping to move quickly and minimise delays.
Consider market trends
Understanding the current state of the property market is vital. Is it a buyer's market, where there's more supply than demand, or a seller's market, where demand surpasses supply?
In a seller's market, you might have the flexibility to be more selective with offers. However, in a buyer's market, dismissing offers hastily could mean missing out on the best offer you’ll get.
Research property prices in your area to gauge the market accurately, or get in touch with your agent for expert guidance.
Trust your estate agent
Your estate agent's experience and insights can be invaluable when assessing offers. A skilled agent can provide a nuanced perspective, helping you identify potential concerns and navigate intricate offers.
Rely on their expertise to make a well-informed decision that aligns with your objectives and the current market conditions.
Consider your personal circumstances
Beyond financial aspects, remember that selling a property can have personal implications. Do you need a quick sale, or can you afford to wait for a better offer? Are you emotionally attached to your home and seeking a buyer who will appreciate it as much as you do?
These personal factors can play a significant role in your decision-making process.
Summary: Reasons for rejecting an offer
There are lots of reasons you might not accept an offer on your home. Some of these include:
Unsatisfactory price – The offered price is significantly lower than the your expectations or the property’s market value
Unfavourable terms – The terms and conditions of the offer, such as the proposed completion date, contingencies, or repairs to not align with your preferences.
Buyer financial instability – The buyer’s financial qualifications, such as creditworthiness or mortgage pre-approval status, raise concerns about their ability to secure financing and close the deal.
Conditional offers – The offer is contingent on the sale of the buyer’s current property, introducing uncertainty and potential delays into the process.
Unverified buyer – The buyer hasn’t provided the right documentation to prove their financial capacity or credibility.
Lack of flexibility – The buyer is inflexible about negotiation or is unwilling to address reasonable requests from the seller.
It's important to carefully consider all these factors when making the decision to accept or reject an offer. Each situation is unique, and sellers should weigh these reasons against their specific circumstances and priorities.
Contact your local Parker’s branch to start up your moving journey