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Should I accept the first offer made on my home?

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Should I accept the first offer made on my home
Posted 29 April 2016

Is the first offer the best offer?

Your home has been on the market 2 weeks, you've had 6 inspections and 1 offer. It's a good offer but not quite what you wanted.  Let's assume you've done your market research on property prices in your area on similar properties. You have used some of the home valuation guide websites to give you a strong idea of the value of your home. Well.....so has the buyer. 

That first offer can be anything from right within your ball park and totally acceptable to outrageous and almost insulting. And it could come after months of listing your home for sale, or as soon as your property listing is live. Whatever the situation....how do you manage to stop, take a breath, and analyse if the offer is the best one for you?


Everyone has a theory on real estate.


Everyone has a theory on real estate. People will quite often theorise that the first offer is usually the best....and sometimes it is....but not always. What is undoubtedly the case, is any first offer is going to cause you some level of anxiety and stress. If it comes early in your sales campaign, how do you know it could be the best possible price? Or if you have been on the market for months, perhaps you feel it may be the only offer you get?

So what should you do?

At the start of the sales process, before the home is officially on the market, set your own personal limit - or reserve if you like. Be realistic and be firm with yourself. Make sure your price is based on a realistic valuation of your home. 

Do your research. Read the Next Address blog post How much is my house worth? before you start.  Now there are loads of great home valuation tools online you can use which provide an accurate guide to the value of your home. Or you can engage the services of a property valuer.  This will give you a good idea of what you can realistically expect.


How much is your really house worth? 


Remember, if you set your personal reserve and an offer comes in quickly - but is not quite there - you have some power to negotiate to push the price higher. However if you have been on the market for a while and this is the first offer, you may need to take some time to consider the offer seriously. Weigh it up against all factors including lifestyle and financial factors.

You may find some negotiating power with the terms of the offer from a preferred settlement date, no finance clauses, building inspections etc that could help with the final agreed sale price. Successful negotiating is achievable when you have a clear idea of what you need to achieve. Theres the old saying " a win win for everyone"

Next Address suggests using an 'Offer to Purchase' document to assist with the negotiating process. Consider all the above factors and how they marry to make this a successful transaction which works for you.


Have a clear idea! 


With all this in mind, it is important to consider the value of getting your home sold. And this is not just about price. It's also about how it affects your lifestyle, how quickly do you want to be able to move on, what changing circumstances have to be factored in? You may have the luxury of time to wait for just the right price.....or you may have already bought and have some urgency around selling up and moving on.

So setting your reserve price and understanding the value of moving is not always just about the price you put on your property.


It's not always just about the price 


Our advice? Do your research, read our blog posts on valuations and ask loads of questions. Ask friends, neighbours and colleagues about there experiences with both the real estate process and achieving a fair price. And if you need some help....just ask us....we can point you in the right direction.  

More great blogs to read

Property Valuation

Photography tips

How to use an offer to purchase document

Successful negotiating



 

 

 


 

 

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