So you’re a seller. You’ve prepped your home, staged it to shine, listed it at a sharp price and the showings are rolling in. You are eagerly awaiting an offer! But what happens when one comes in, or better yet, two or three…
The real estate industry tends to speak generally and vaguely, and often doesn’t educate about the true scenarios that you face when you are actually selling a home. So here it is, our tips on responding to an offer.
When you get that much anticipated call from your agent ” hey guys, we just received an offer”, you are nervous, excited, and sometimes completely frazzled by emotion. Going through the selling process ourselves, we know the feelings. It is always a big moment, whether it be the first offer, the winning offer, or anything in between.
So what are the options.
1. Turn down the offer
If the offer is just simply not appealing (ie. The price is wildly low, they have a firm closing date that you cannot accommodate, or their clauses and conditions are excessive and unreasonable) should you feel there is no sense in trying to work out a deal with this party you can choose to not engage with it and notify the other party that you are not interested.
2.Counter the offer
You received a good offer, but were hoping for a better one… this is your chance to let your agent negotiate on your behalf and optimize your sale! This can mean countering the price for a higher figure, presenting an alternative closing that favours your preferences, shortening or eliminating conditional periods, and eliminating clauses as needed.-When engaging in a counter offer, if you put “pen to paper,” when signing back or countering on one of the offers (either digitally or in writing), you will then be locked in to working with that one offer. In other words, you cannot sign back or counter offer more than one offer at a time when you have received multiple offers.
If, as the Seller, there is only ONE offer on your property, countering with a sign back in writing is encouraged because tactically, you are negotiating with only one party at the table. However, it becomes infinitely more complicated is when you have multiple parties at the table and there is not one stand-out winner.-It is also important to note that when engaging in sign backs with a buyer, this negotiation process can take several back and forth offers before all parties ultimately agree and the offer is accepted.
3.Accept the offer
You receive an awesome offer and you know that it is in your best interest to take it and run! Accepting an offer without negotiation can happen when a buyer brings their ” best and final” to the table right away. Sometimes buyers don’t have interest in the back and forth game, and would prefer to bring you their best offer right away, for a fast an efficient deal.
Want to learn more about the process of handling an offer? Reach out! We love talking offers!