Should You Ever Accept The First Home Offer?
Before you have even received a home offer, sellers will typically have done everything you can to make sure the process goes smoothly. You’ve cleaned up the house, taken attractive photos, made it presentable for showing, and done everything you can to make sure you’re getting the right price for your home.
However, when it comes to accepting a home offer it can a be a tricky process to make sure you do it right.
Don’t Just Look at the Number
The first thing you need to do when selling your home is to take a deep breath and remember that all your hard work is about to pay off. Sometimes being patient is the right move. At the same time, sometimes you need to be decisive.
The home selling price isn’t just merely the number that the buyers are offering. There are also the terms and conditions to take into account. Just because you have a set number in your head doesn’t mean the home offer being made isn’t the right one because it doesn’t match your initial expectations. In many home sales transactions, the first home offer is most likely the offer that ends up being the one that buys the house.
That doesn’t mean you’re bound by some unspoken real estate law to take it, but typically the first legitimate offer is usually the one that seals the deal.
Consider Negotiating
If you’re living in a hot real estate market, like an up and coming neighborhood, or a great location with fantastic schools and amenities nearby, a good home offer may be tempting to pass on because you’re holding out for that “great offer.” However, holding out for that moonshot may backfire as it may never materialize and your buyers can move on, which would be a bad thing.
Any serious offer you get from a qualified buyer is something you should weigh carefully, keeping in perspective that there is always room for negotiation. If one particular detail isn’t to your liking, feel free to go back to the sellers or their agent and ASK!
Remember the old adages about “squeaky wheels get the grease” or “if you don’t ask, you’ll never know”? There’s a reason those exist. Home sales are less of a fixed price, one and done, and are more typically a back and forth negotiation between the two parties.
Timing of the Offer
In real estate, like many other things in life, timing is everything. Sometimes the first offer that comes in may be the right one, especially if the timing is right. The last thing in the world that you want to happen is that your home should sit on the market for too long, and pass into one of the less in demand buying time frames, like winter or fall.
Additionally, when a home sits on the market too long, buyers begin to assume there was something wrong with it. Otherwise why would this perfect home still be available? Most real estate pros advise that the first three weeks a home is on the market is when it’s most active in terms of buying interest, and waiting beyond three weeks can be detrimental.
While this is not a hard and fast rule, interest typically starts to dwindle beyond the initial burst of interest. Offers made in the first three weeks therefore should be considered carefully before you pass.
Cash Offers
Another factor that can make a first home offer more attractive than waiting is if the buyer makes a cash offer. While sometimes cash offers can be slightly less than the asking price of your home, it’s a far easier transaction if the deal is done in cash.
Not having to wait for bank approvals and lending to come through means you can move towards a close date much quicker than average. This time savings can be invaluable.
When do you receive a home offer, make sure to review carefully. If there are no red flags, warning signs, or legitimate reasons why the deal isn’t good, there’s no reason you cannot accept a first home offer.