When to Accept the First Offer During a Home Sale
There are no rules governing how to navigate the sale of your home in Sioux Falls. One of the most complex aspects of selling a house is the offer process and it’s natural for homeowners to be hesitant about accepting the first offer. What if another buyer comes along and offers more? What if I can negotiate a better offer from this buyer? A case of the what-ifs can make the decision between declining or accepting an offer much more challenging. To help you navigate this process confidently, the specialists at Amy Stockberger Real Estate (ASRE) have highlighted the instances in which you should accept the first offer during a home sale.
The Philosophy Behind Accepting the First Offer
Accepting the first offer when selling your home boils down to the two Rs: risk and resources. When you follow a wait-and-see approach to selling, you’re essentially risking guaranteed money for a potential payday. Also, without enough resources, following a wait-and-see strategy can lead to desperation further down the line if your house doesn’t sell. By navigating the process with the two R’s in mind, you’re far more likely to manage your emotions and make judicious decisions.
If you think about it, why lose a guaranteed offer if you don’t need to? Putting the two Rs strategy aside, your current living and financial situation will heavily influence your decision. That being said, there are specific instances when you should accept the first offer and our team has listed four of them below.
You’re in the Process of Moving
Moving can be a stressful process without the added pressure of negotiating offers. When you’re moving out of town or out of state, accepting the first offer means you get to move without the stress of paying a mortgage on a home you don't reside in.
The Home Is Inherited
If you are placing a house that you have inherited on the market, the smart choice is to accept the first offer to purchase. While receiving an inherited property can seem appealing, the cost of owning a home you didn’t buy isn’t as attractive when you start crunching the numbers.
You will be responsible for mortgage payments on the house. If you don't plan on residing there you will have to find tenants. Furthermore, if you are going to test the open market by waiting for other offers, you may be surprised by hidden flaws that could cause other offers to fall through. Selling to the first offer means you're able to reap the benefits of inherited property.
The Local Market Is Lackluster
If you’re in a hot real estate market, with homes being sold every few days at exceptional prices, waiting is in your best interest. In most other instances, a bidding war is less likely, especially if there are other homes on the market with comparable features and characteristics. If this is the case, not only are you ensuring a sale, but you are also ensuring the potential buyer doesn't find another home at a better offer.
However, the number of days on the market may not be exclusive to only your home, but other local properties as well. If houses in your area have substantial days on the market it could be a trend. Choose to sell while you still have a buyer’s interest rather than gamble on the open market.
With all of this being said, not every first offer is a good offer. There are situations when you can afford to be patient. The cons of accepting the first offer include missing out on more money or better terms from other prospective buyers. And if you're in a hot market, accepting the first offer just goes against the grain—unless it's a once-in-a-lifetime deal. Furthermore, if you are wary about the first offer, discuss it with a professional real estate team like ASRE. We understand the market and have insight into relevant data.