Should you accept the first offer?
After months of preparation your property hits the market. Within days there’s an offer made and it’s good (maybe even great).
The big question is…should you take it? Should you count your lucky stars and sign on the dotted line, or is this initial offer just a sign of the price your property could achieve?
Whether to take an early offer or hold for something higher is one of the biggest and most emotionally charged questions that a vendor will face when selling a property.
And it’s a decision that can evoke fear and stress. So let’s look at the dynamics behind offers including timing and negotiation.
When early offers happen
Sometimes there’s a tendency to think an early offer means a property has been priced too low. But that’s not necessarily the case.
Often, serious qualified buyers move fast. They know what they want and if they’ve been watching the market and waiting for a property just like yours, they’ll move decisively once a property appears that ticks all their boxes.
But the bigger question is: what do you do when your property attracts a strong first offer?
Things to consider
It’s important to note, the first offer tends to come from the most motivated buyer. These are the purchasers who understand what your property represents and they’re ready and willing to purchase both emotionally and financially.
As the vendor, you can opt to accept this offer, or alternatively you can use it to set the tone for negotiations.
Pros and cons of accepting the first offer
Whether or not you accept the very first offer that is put to you depends on a whole range of circumstances.
On one hand, a strong first offer confirms the home’s appeal and pricing, and accepting it can potentially reduce a whole lot of stress, including weeks of open homes, uncertainty and conditional offers later down the track.
Accepting an early offer also protects you should the market shift.
But on the flipside, if the property’s just been listed, how do you know there aren’t other people out there who are willing to pay as much or more?
It may be worth allowing more buyers to inspect the home in order to get a feel for exactly what the market is willing to pay.
It’s also worth weighing up the conditions associated with any offer, such as finance clauses or long settlements, and whether they suit your needs.
Meanwhile, the type of market plays a role. In a seller’s market, competition might drive the price up further. But in a balanced market or buyer’s market, it could be worth securing a fair early offer early.
A great agent
When it comes to navigating the landscape of offers, working with an experienced agent that you trust is an absolute must.
A great agent will offer guidance on market conditions, pricing, and buyer demand to allow you to make an informed decision about whether this is an offer you should accept.
They will tap into their data and insight to gauge whether stronger offers might be forthcoming and will help you negotiate to ensure you are receiving the best price possible for your property.
How we can help
If you’re considering buying or selling a property and seeking to understand the current market conditions, why not chat with one of our friendly agents to understand how we can help?
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