Receiving and Accepting Offers.

On receiving an offer you have four options:–

• accept the offer,
• reject the offer,
• counter the offer or
• let it expire.

All but acceptance are actually rejections. A counter offer states which aspects of the offer you find acceptable and what clauses needs to change. It also signifies that you are willing to negotiate.

Accepted Offers are BINDING and TIME SENSITIVE

Offers are binding legal documents that, once accepted, are irrevocable. There is no grace period for you to withdraw. They state exactly what is being purchased, the total price to be paid, The conditions you or the other party need to fulfil to complete the transaction. The dates by which you or the other party must fulfil the conditions. Failure to notify the other party of conditions you fulfil or fail, may according to the terms of the contract, be tacit acceptance or rejection. We must watch these conditions and dates very carefully. I create a series of deadline dates in my agenda as soon as you acknowledge a valid offer.

Which Offer Should You Accept?

Receiving and accepting an offer may seem to be quite strait-forward. But its not that simple. There may be multiple offers to consider and money is often not the primary concern. There is a fundamental difference between the traditional offer system and an auction.

Price, though usually important, is often not the deciding factor.

A demonstration of the buyers ability to complete the transaction is vital. You may assess this by the size of the deposit, the reliability of the financing etc.

The conditions are very important and sentiment is sometimes the deciding factor. Some agents ask their buyers to write a note explaining why you should accept their offer.

Timing is also a critical factor. The buyer or seller may heavily favour a fast or slow completion

Most good agents begin presenting an offer by carefully going through the conditions before introducing the price.

The Potential Pitfalls Receiving and Accepting Offers

The Building Inspection

Faults the building inspector reveals provide the largest potential for negotiating a price reduction. Investing in a pre-listing inspection invariable offers a huge return to the seller. This usually eliminates surprise problems. It reveals and reduces potential points for negotiation. You then have the opportunity to catch up on maintenance that you may overlook. You can acknowledge and get firm quotations that allow for repairs that will be needed. Last minute estimates by the buyer and the inspector will usually include substantial contingency allowances.

It’s a good idea to do a complete cycle of routine maintenance just before listing.

If the Buyer is told what to expect before they make the offer, there is no excuse for further price negotiation.

The Appraisal Gap

This is the subject of a separate post. This may be a problem that we will face together. It may take time and effort to overcome but need not be insurmountable.

Don’t Worry. I’ll be There for You

I realise that receiving offers may sound complicated. Don’t worry. As your real estate agent, I’ll take care of all the details. For example, I will:

• Review the offer with you and explain everything clearly.
• Give you my professional assessment as to the quality of the offer. If there are things that concern me, I’ll point them out to you.
• Advise you on whether to accept the offer, reject the offer, or make a counter-offer.
• Prepare a counter-offer, if necessary, that gets you a better deal, without risking the sale slipping through your fingers.
• Skillfully negotiate with the buyer on your behalf, so you sell your house for the highest price possible.
• Prepare all the necessary documents, and work closely with the buyer and his or her agent, to make sure the transaction goes through smoothly.
• Communicate with you throughout the entire process. You’re never in the dark when you work with me.

Selling your house for the best price possible is my expertise, especially in this local market.

Want to discuss how much you may be able to get for your house? Please call or email me for a no-obligation Personal Consultation.