Sales

I’ve received a private offer, am I leaving money on the table if I take it?

Every now and then people end up in a conundrum on whether they take save on agent fees and take a private offer from a neighbour or family member, or go to market and see if there’s more out there. It’s a difficult decision to make and without hindsight, there’s always a level of risk involved.

So, here are the facts you need to consider. First and foremost, does the offer meet your expectations? If it does, then that’s a great start, at least on a personal level, though you have to bear in mind that when it comes to selling real estate, it is a business transaction and your job is to get the best out of the market. By only having one offer on the table, it is not contested and you will never know if that was the best offer out there or if someone else was willing to pay more.

Depending on your reasons to sell, may influence your decision to take a single offer. In cases such as divorce, it is sometimes easier to just accept the easy option to move on with life a little quicker. If saving time going to market is going to help your circumstance, then sometimes money is as important and it’s easier to go forward.

If your goal is to save agent fees or extra costs, then money definitely matters to you. So here’s the thing, we know the market better than you, it’s our job too. If an offer presents itself around the time you were thinking of going to market, then still proceed with interviewing agents and see if you can find one that will provide you the honest feedback you need to proceed forward.

Having an agent that you feel you can trust on board can help really help with the decision. If it is a great offer and the agent says you should take it, well then listen to them and go for your life. If your property sits on a line whether you can maybe receive more than what’s been offered, weigh it up. Is it going to be substantially more that it’s worth paying agent fees? Or is it just enough to cover the fees and end up in the same place? Obviously depending on the comparable sales and the evidence that there is more money out there, you should choose which ever is the less stress and most financial viable move.

If there is an opportunity to keep the buyer there and be able to test the market (ie, someone looking to acquire multiple properties in your area) then once again weigh up whether your property is going to attract enough interest to push the offer higher. This must be looked at objectively and discussed with a local professional who knows the buyers and how they will react to your property. There is risk by going down this route, if the interest levels are lacking, the buyer can drop the initial offer to a lower figure as they can see the lack of interest. Though if the decision was correct, you will be in a position where you will have exhausted a marketplace, had multiple offers and feel comfortable with the highest offer at the end of the process.

 

DISCLAIMER

The following advice is of a general nature and intended as an opinion and broad guide. For all legal, financial or real estate advice you should obtain independent professional advice to do with the specific nature of your circumstances before making any legal, financial or real estate decisions.

Leave a Reply