Receiving and Accepting Offers
Receiving and accepting offers is when the fun really begins.
We understand some of you may find this process daunting or scary. But trust us when we say it doesn’t have to be! This stage of the game is the most exciting part of selling property – it’s a game of strategy to the finish line.
Of course, there’s always the option of enlisting a professional’s help if this really isn’t your strong suit. If you sell privately with us at buyMyplace, you can add our Professional Negotiations service to your campaign anytime. Our negotiation specialists will take over the process on your behalf to drive the best possible sale price from up to three buyers.
However, you only grow outside of your comfort zone! Receiving offers and negotiating your property’s sale price is a simple process. When you think about it, it’s just a matter of having conversations with buyers and reaching an agreement. And yes, you’re right – it is easier said than done because, like everything in life, things don’t always go as planned. We’re not saying this process is a walk in the park, but if you show up prepared you’ll be kicking goals all day long.
Before You Dive In
Before you engage with buyers, assess your financial situation and determine the absolute minimum price you are willing to accept. This will help keep you aligned with your budget, and give you a benchmark for knowing when to walk away.
Remember, receiving and accepting offers is a game of strategy. You’ll win the game with ease if you plan ahead and have action plans ready for the different scenarios you might face.
On average, properties receive the maximum number of enquiries within their first 30 days of listing on the market. It’s said you should make the most of your first few price offers because, generally, they will be your best offers. Don’t be discouraged if your first few offers don’t live up to your expectations because they tend to be the easiest to negotiate with. These buyers have usually been searching the market for a while and are keen to buy immediately.
Counteracting Low-ball Offers
Receiving a low offer can be disappointing. However, this is your opportunity to negotiate to a higher figure. You’ll hold the most negotiating power, but always keep your absolute minimum price in mind.
Unsure on how to reject a low offer?
Start by thanking the buyer for their offer (polite manners go a long way). Then you may say something like, “Based on current interest shown in my property, your offer is at the lower end of the property’s value. If you could secure the property today, would you pay $____?” Or, “Unfortunately, your offer is lower than what we’re willing to accept. Based on market feedback, we are expecting the property to sell between $_____ and $_____.”
If the buyer can’t reach your absolute minimum price, it’s always worth asking if they would like to be contacted if your price drops in the future. It’s better to be safe than sorry. But, as long as you’ve set a fair price for your property, you’ll likely find ‘the one’ (your perfect buyer) right around the corner.
What to Do With a Duo
It’s quite possible that you’ll receive multiple offers at once, lucky you!
The best and fairest way to manage two offers that both fall within your acceptable price range is to let both parties know there are other offers on the table. Allow both parties the opportunity to give you their best offer, but be sure to specify a due date to encourage a sense of urgency. Once both parties have put forward their best offer, assess and accept the one you prefer most.
This method gives both parties a fair chance to secure the property, which helps you avoid the unethical practice of gazumping (backyard auctioning).
Think Before Committing
If you find a buyer and the price is right, be sure to consider more than just the dollar sign.
For example, if you find yourself juggling two offers at once, what will you do if the higher bidder’s offer is subject to finance? Will you risk it? Or, will you accept the lower, more secure offer?
Quiz yourself with other questions such as:
- What if an offer is subject to your buyer selling their own property?
- How long would you like the settlement period to be? 30, 60, 90 days?
- Is a cooling-off period mandatory according to your state’s regulations?
We’ve Accepted! Now What?
Once you have accepted an offer and agreed to all terms and conditions, inform your conveyancer so they can amend the contract accordingly. Once amended, pass it onto the buyer so they can sign on the dotted line. From there, your conveyancer will help you handle the legal aspect of selling your property.
Pro tip: don’t sign the contract before the buyer does!
Heard of the saying “when life gives you lemons, make lemonade”? It doesn’t happen often, but if the sale of your property is subject to special conditions it’s possible that your offer could fall through. Don’t lose heart, get back in the game and another buyer will come along before you know it.
If you sell your property with buyMyplace, the first thing you should do is let us know your sale has fallen through. We’ll relist your property at no extra cost, so you’ll be back on the market in a jiffy. Secondly, go back to all the other buyers who have shown interest in your property to let them know it’s back on the market and you’re open to taking offers. Organise more Open for Inspections so interested parties can revisit your property.
Now that time has passed since you first listed your property on the market, consider making a few changes to generate interest and attract new buyers. We’ve got a few marketing tactics up our sleeves to help you get started. Hit the refresh button and consider updating your listing’s main hero image, or consider purchasing professional photography services to really impress new buyers.
No matter what happens in the final stage of selling your property, the best thing you can do for yourself is to stay calm, cool and collected. Being prepared, setting realistic expectations and keeping a level head will guarantee your success.
More Food for Thought
Before we send you on your merry way, equipped and ready to take on your buyers, here are a few housekeeping items for you to take on board.
– Facing a Buyer’s Advocate
If your buyer isn’t a comfortable negotiator, they may enlist the help of a buyers advocate. The buyers advocate will negotiate on behalf of the buyer in order to drive the deal in favour of their client. Be aware of any sales bullying tactics they may use and be sure to stick to your guns. If in doubt, don’t hesitate to contact us in regards to having a professional negotiator take over on your behalf.
– Get It on Paper
Nearly as important as the golden rule, be sure to get everything in writing.
If you decide to sell with us at buyMyplace, you can download our ‘Letter of Intention to Purchase‘ and forward it to your buyer to formalise their offer. While the Letter of Intention is not legally binding, it does put pen to paper and documents the details of their offer, such as the settlement period, any special conditions and the cooling-off period.
If your phone starts ringing with verbal offers and you don’t have time to send the ‘Letter of Intention to Purchase’ to your prospective buyer, suggest they send you an email outlining their offer, rather than accepting it verbally.
Keep track of all the offers you receive, including details like the buyers’ names, contact details, the prices offered, and all proposed conditions. This will hold yourself and your buyers accountable for your agreements and allow you to stay organised.
– Take Your Time
In all the excitement of receiving an offer, you may say something rash or fail to completely consider all your options. Don’t be afraid to tell buyers you need time to consider their offer. Consult your partner and/or family to see what they think. Acting impulsively won’t do you any good, so give yourself time to truly reflect what’s on the table.