You’ve got an offer! Now what?

You’ve got an offer! Now what?

You’ve got an offer! Now what?

POSTED BY John Ireland ON 18 Dec 2020

When you’re selling your home, one of the trickiest parts can be knowing when to accept an offer, especially if you have a specific price in mind.

This is why you need an experienced agent to help you make this all-important decision. Take a look at some of the factors you should be thinking about when deciding if an offer is really ‘the one’.

The current market

Home sellers must take the current market into account when deciding whether or not to accept an offer.

Overall, Sydney’s property market has shown signs of cooling in the first quarter of 2018. Sale prices in the Avalon Beach area have been affected, which is to be expected after 5 years of strong growth.

This has left a lot of my clients wondering exactly what their property is worth.

Some of them have been receiving lower offers than they were hoping for. This is especially the case for clients who had their properties valued at a higher price last year, only to find themselves in a different market now.

As an agent, it’s my job to educate home sellers about current market value by sharing data about how much properties are selling for this week, rather than a few months ago. Having this information is one of the best ways of determining how realistic an offer is for your property in the current climate.

Of course, every property is different – and properties in the Avalon Beach, Clareville and Palm Beach areas remain highly desirable. In some cases, depending on the home you are selling, I may advise you to hold out for a better offer.

The number of buyers

Every property is only worth as much as someone is willing to pay for it. A lack of potential buyers means less competition so a buyer in those circumstances has the power to negotiate a lower price or favorable terms.

As your agent, my job is to create as much interest in your property as possible. I achieve this for my clients with a variety of strategies, including using eye-catching marketing, leveraging an extensive database of buyers all over Sydney, and ensuring a stylish presentation on open day.

However, while I enjoy a lot of success bringing potential buyers to my clients’ doors, I can’t control the market. There may be a lot of local properties for sale and few buyers. In this case, you’re likely to receive a lower number of offers, as buyers can become picky or choosy.

I will always negotiate on every client’s behalf to get them the best price possible. However, I will always be honest if I don’t believe you’re going to get the exact offer you’re looking for, and I will let you know if the offer you have received is the best you are likely to get.

The cost of keeping the property

Some other questions to ask yourself when considering whether or not to accept an offer relate to what your costs are if you don’t. These questions include:

How much is it costing per week to keep your property?

This includes your mortgage payments, insurance, rates and leasing fees. Is it really worth holding out for an offer of ten or twenty thousand higher if it could mean losing most of that in monthly fees?

In my opinion, achieving the best possible price is the most important thing, however as long as you buy and sell in the same market environment, then it’s all relative.

Are you selling your own home or an investment property?

If you have tenants in your property and list it for sale, it’s possible they will begin to look for somewhere else to live. If your home is still on the market when they move out, it could prove very difficult to find someone to pay the rent while you’re waiting for a buyer to come along. This can leave you with a bigger deficit in your budget.

I can help you do the maths to work out whether taking a lower offer than you were hoping for will leave you better or as well off.

The terms of the deal

Negotiating a property sale isn’t all about money. Sometimes, a bird in the hand is worth two in the bush so a lower offer may be worth taking in order to secure a quick sale.

You may also be able to negotiate the buyer into spending a little more, so they can get the terms they want.

This is where it makes sense to have a skilled agent who can broker a deal everyone is happy to agree on.

Your future plans

Your decision to accept an offer can also depend on how quickly you need to sell in order to move on.

If you need a quick sale, it may make sense to take the first offer you get, providing it’s a solid offer. In saying that, sometimes your first offer is your best offer.

On the other hand, if you can afford to wait a little longer, you may be wise to hold out for a higher offer, by letting the agent do his job. It really depends on your personal circumstances.

As well as being dependent on the current market conditions, selling your house is all about comparison and risk. The offer you accept should depend on many factors, which is why most agents will give a price range value of your home rather than an exact number.

As your agent, it is my goal to get you the very best price for your property and to market it in a way that has buyers competing to secure it as their own. However, I will also do my job by sharing market knowledge and information to help you understand how much you can realistically expect to sell your home for.

By providing clarity throughout the process I will help you will feel certain that you won’t miss the ‘right’ offer when it comes along.