Should I accept, reject, or counter the very first offer on my home?
So you’ve made the decision to sell your home. You have it listed, and your agent provided you with comparables and information that, from a professional approach, will sell your home quickly and at Fair Market Value. After all, you have your eye on a home in Westridge that you REALLY hope you can purchase once your home gets into escrow. Everything is going great. Even better, two days after your home hit the Multiple Listing Service, you receive an offer!
Suddenly, you begin to second-guess yourself and your Realtor. “Wait. That was TOO quick,” you say to yourself. “Maybe we should have listed it for more money.”
This thought process unfortunately leads many sellers into the trap of self-doubt, leading to a listing that ends up sitting way too long on the market because they decided to reject their first offer for fear they did not ask for a high enough selling price. So what should a seller do when confronted with a quick offer? When should they accept, reject, or counter? Let’s take a look at some solutions.
“Know when to hold ’em. Know when to fold ’em…”
The popular song performed by Kenny Rogers referred to the game of Poker, but in the case of real estate, there are some definite signs as to when you should accept, reject, or counter the buyer’s offer.
Beware the “low-ball” offer.
This is an almost always unsuccessful tactic from buyers who have not been properly educated by their agent as to how the home selling process works. In this case, they try to “haggle” by making a ridiculously low offer, typically WAY below asking price. This is a situation where you may consider countering their offer at a price you feel is fair, or you can reject it outright.
When to reject vs. counter.
In any situation, a buyer’s offer that does not come without at least a loan pre-qualification letter is usually a red flag. Not only is he/she offering a price way below Fair Market Value, but you don’t even know if they can afford to purchase the home.
Another red flag is in the form of very little, or no, good faith deposit from the buyer. Again, this may be indicative of how serious they actually are about buying your property.
The “Asking Price” offer.
If an offer comes in very quickly from a buyer for your home at asking price, don’t second-guess yourself! You have reached this price through the diligence and professional opinion of your real estate agent who has used (and shown you) recent comparables, title information, and demographics to come up with a price he/she knows will help you reach your real estate goals. Of course, the above rules still apply. You will want to make sure the buyer can actually afford to purchase the home, and that they are willing to put down enough of a good faith deposit to make you feel comfortable that they won’t back out before escrow closes.
We are your Santa Clarita real estate professionals!
Montemayor & Associates is a team of highly trained, experienced, licensed Realtors who are ready to serve all of your home buying and selling needs. Contact us today for a no obligation consultation.Email Contact Form