Finding a reliable buyer who is prepared to proceed quickly
Whether you’re a first-time homebuyer or an experienced homeowner looking to make another move, the prospect of making an offer on a property can be both thrilling and daunting. The decision to accept an offer on your home is significant – should you opt for the highest bid? Is there room for negotiation?
Receiving an offer on your home can certainly be exciting, but deciding whether to accept it can be challenging once the initial joy subsides. While it’s natural to want to secure the highest price possible, it’s also crucial to find a reliable buyer who is prepared to proceed quickly.
Accurately reflecting your property’s value
Firstly, ask yourself if the offer accurately reflects your property’s value. If your home has only recently been listed, you might want to hold out for potentially better offers. Timing can also significantly influence your decision – if you need to sell quickly, you may be more inclined to accept a slightly lower offer to expedite the process rather than wait for a higher bid.
It’s also important to consider the buyer’s circumstances when deciding whether to accept an offer. How quickly are they able to complete the sale? Do they need to sell their current property first? Will they need to secure a mortgage to purchase yours or do they already have a mortgage ‘Agreement in Principle’ in place?
Not obligated to accept the first offer
Remember, there’s no need to rush your decision. Take a day or two to carefully consider all aspects before making your final call. The question of whether to accept the first offer on your house is complex and depends largely on individual circumstances.
You are not obligated to accept the first offer, or indeed any offer, if it doesn’t meet your expectations or needs. However, there may be situations where accepting the first offer could be beneficial.
Prolonged period without much interest
For instance, if your home has been on the market for a prolonged period without much interest or you’re in a rush to sell due to work relocation or school considerations, accepting the first offer might be wise. Similarly, if you’ve already had an offer accepted on a new property and are eager to proceed with the purchase, the first offer on your current home could expedite the process.
As for whether sellers always select the highest offer, while most aim to secure the maximum price for their property, certain circumstances might lead homeowners to accept a lower bid. If a quick sale is necessary, a lower offer from a cash buyer or someone who has already sold their property or secured a mortgage ‘Agreement in Principle’ might be more appealing.
Withdrawal and subsequent time wastage
There are also instances where a higher offer might not seem credible, leading to concerns about potential withdrawal and subsequent time wastage. Emotional factors can also influence decision-making, such as a desire for a family home to be passed on to another family or a preference for buyers who would make good neighbours if the seller is remaining in the area. Ultimately, it’s your property, and you have the right to sell it to whoever you choose.
When you find yourself with multiple offers on your property, you’re in an advantageous position to possibly secure a high selling price. If the offers you receive are identical, you have two main options. Firstly, you can choose a buyer with the potential to close the sale swiftly, such as an individual who isn’t part of a property chain or who has a pre-approved mortgage.
Maintaining the right to retract an offer
Secondly, initiate a sealed bid process, where both interested parties record their highest offer for the property in a sealed envelope to be submitted by a specific date.
With the second option, your estate agent will open the bids; typically, the highest bid is selected. However, it’s crucial to remember that you aren’t legally required to accept the highest bid. The buyer also maintains the right to retract their offer, with the sale only becoming legally binding upon contract exchange.
A mutually agreeable price is reached
Negotiation is not just a possibility but often an expected part of property transactions. Buyers usually submit their initial offer at a level 5-10% below the asking price. As the seller, you’d typically respond with a price above their offer but still less than your original asking price.
This negotiation continues until a mutually agreeable price is reached. However, there’s no obligation to negotiate. If an offer is so low that it questions the buyer’s seriousness, feel free to reject it.
Turning down a full-price offer
Remember, as the seller, you can turn down a full-price offer. There are several reasons why this might happen. For example, if a full-price offer is made shortly after listing, you might suspect undervaluation and decide to reject the offer and increase the price.
You might also reject a full-price offer if you anticipate a long completion time due to the buyer’s circumstances, such as not yet listing their current home or being part of a lengthy property chain. Lastly, declining the offer is within your rights if you’ve simply changed your mind about selling.
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Please note: a mortgage is secured against your home or property. Your home or property may be repossessed if you do not keep up repayments on your mortgage or any other debt secured on it.
