Getting a good price for your home: When to hold out for a better offer
Category Sellers Guides
For most people, buying a home is the largest investment they'll ever make and it's natural to want to ensure you're getting a good price for your property when it's time to sell, however, determining whether an offer is fair can be challenging.
"We all want the best possible return on investment," says Cobus Odendaal, CEO of Lew Geffen Sotheby's International Realty in Johannesburg and Randburg, "but whilst it's tempting to hold out for a better offer, it is crucial to not lose out on a good deal and to balance expectations with market realities and also individual circumstances.
"Determining whether you are getting a good price for your home requires careful consideration of various factors and, of course, the knowledgeable advice of your estate agent.
"This is one of the main reasons that it's essential to select an agent who has experience and knowledge of the local market so make sure you ask questions about how long he/she has been working in your area and ask for a sales track record."
Over and above consulting with your property professional, Odendaal says that the following should be taken into consideration when deliberating about whether to accept or reject an offer:
Research the Market
To gauge the value of your home, start by researching the local real estate market. Look at recent sales of comparable properties in your area to get an idea of the average selling price. Consider factors such as location, size, condition, and amenities to make accurate comparisons. This information will serve as a benchmark when evaluating offers.
Evaluate Buyer Motivation
Consider the motivation of the buyer when assessing an offer. If a buyer is genuinely interested in your property and has made a competitive offer, it may indicate that they are willing to pay a fair price.
Conversely, if an offer seems low or comes with multiple contingencies, it may indicate a less serious buyer or someone looking for a bargain. Assessing the buyer's motivation can help you gauge the likelihood of receiving better offers in the future.
Factor in Market Conditions
Take into account the current market conditions when evaluating an offer. In a seller's market with high demand and low inventory, you may have more negotiating power and the potential for multiple offers and holding out for a better offer could be a viable option.
In a buyer's market with increased supply and slower sales, it may be more challenging to secure higher offers quickly. Understanding the broader market conditions can inform your decision-makiFor most people, buying a home is the largest investment they'll ever make and it's natural to want to ensure you're getting a good price for your property when it's time to sell, however, determining whether an offer is fair can be challenging.
"We all want the best possible return on investment," says Cobus Odendaal, CEO of Lew Geffen Sotheby's International Realty in Johannesburg and Randburg, "but whilst it's tempting to hold out for a better offer, it is crucial to not lose out on a good deal and to balance expectations with market realities and also individual circumstances.
"Determining whether you are getting a good price for your home requires careful consideration of various factors and, of course, the knowledgeable advice of your estate agent.
"This is one of the main reasons that it's essential to select an agent who has experience and knowledge of the local market so make sure you ask questions about how long he/she has been working in your area and ask for a sales track record."
Over and above consulting with your property professional, Odendaal says that the following should be taken into consideration when deliberating about whether to accept or reject an offer:
Research the Market
To gauge the value of your home, start by researching the local real estate market. Look at recent sales of comparable properties in your area to get an idea of the average selling price. Consider factors such as location, size, condition, and amenities to make accurate comparisons. This information will serve as a benchmark when evaluating offers.
Evaluate Buyer Motivation
Consider the motivation of the buyer when assessing an offer. If a buyer is genuinely interested in your property and has made a competitive offer, it may indicate that they are willing to pay a fair price.
Conversely, if an offer seems low or comes with multiple contingencies, it may indicate a less serious buyer or someone looking for a bargain. Assessing the buyer's motivation can help you gauge the likelihood of receiving better offers in the future.
Factor in Market Conditions
Take into account the current market conditions when evaluating an offer. In a seller's market with high demand and low inventory, you may have more negotiating power and the potential for multiple offers and holding out for a better offer could be a viable option.
In a buyer's market with increased supply and slower sales, it may be more challenging to secure higher offers quickly. Understanding the broader market conditions can inform your decision-making process.
Consider Time on the Market
The length of time your property has been on the market can influence your decision to hold out for a better offer.
If your home has been listed for a considerable period without receiving significant interest or offers, it may be a sign that the initial asking price was too high. In such cases, you may need to re-evaluate your expectations and consider accepting a reasonable offer to avoid further delays and potential price reductions.
Analyse the Terms and Conditions
Assess not only the price offered but also the terms and conditions outlined in the offer. Look beyond the Rand amount and consider factors such as financing contingencies, inspection contingencies and proposed closing timelines.
An offer with simple or favourable terms may compensate for a slightly lower price.
Evaluate Buyer Financial Strength
For instance, a cash offer or a buyer with a strong pre-approval from a reputable lender can provide more confidence in their ability to close the deal.
Offers from financially secure buyers may be more favourable, potentially warranting greater consideration even if the offer price is slightly lower.
"While it's important to consider these factors, trust your instincts and negotiate when you believe it is in your best interest," concludes Odendaal.
"With a thorough assessment and strategic decision-making, you can ensure you are making an informed choice and potentially secure a better offer for your home - or not lose out on what's already a good deal."
Some of the most important people to know in your local community are the estate agents operating in the area.
In an article published in April 2023 Seeff Property Group, explains agents do not only sell or rent property on behalf of their clients, but also have their ear to the ground in terms of what current property values are, how much properties might sell for, and what is happening in the property market.
With so many newcomers to the market, often making lofty promises of high prices and quick sales, it is easy for sellers to get caught up in the hype. A property which simply sits on the market with no or low offers can be very frustrating for buyers.
The role of a good agent in getting your property sold as fast as possible, and for the best possible price cannot be overstated, says Samuel Seeff, chairman of Seeff. A bad agent could leave you with a lengthy and frustrating sale process.
Regardless of when you are selling, but especially in the current market, it is important to ensure you choose the right agent for your property and market. If you are not aware of who the best agents in your area are, ask around for recommendations from neighbours or friends.
Always meet the agents in person before appointing them:
This will give you a chance to ask questions and assess the agents. Check how long they have operated in the area. Each area is different and local expertise is a vital point of advantage for any seller.
Look for a successful sales track record:
Ask for a list of their recent sales in the area, how long it took to sell, and the prices achieved. A strong sales record is an important indicator of the likelihood of success and that the agent could find the right buyer for the property.
A strong brand and network is another advantage:
An established brand will have a strong online presence for maximum exposure of your property backed by the latest technology and marketing and sales methodologies. They will use best practice to market and sell your property.
Look for someone who will assist every step of the way:
Selling a property is a complex process with many legalities to be taken care of. A good agent will explain the process and guide the seller to ensure they have all the necessary documents and maintenance done for an efficient selling process.
Choosing the right agent to sell your home cannot be over-emphasised, especially if you are selling right now as you will not want to waste time, says Seeff. Choose the right agent and ensure you follow their advice.
ng process.
Consider Time on the Market
The length of time your property has been on the market can influence your decision to hold out for a better offer.
If your home has been listed for a considerable period without receiving significant interest or offers, it may be a sign that the initial asking price was too high. In such cases, you may need to re-evaluate your expectations and consider accepting a reasonable offer to avoid further delays and potential price reductions.
Analyse the Terms and Conditions
Assess not only the price offered but also the terms and conditions outlined in the offer. Look beyond the Rand amount and consider factors such as financing contingencies, inspection contingencies and proposed closing timelines.
An offer with simple or favourable terms may compensate for a slightly lower price.
Evaluate Buyer Financial Strength
For instance, a cash offer or a buyer with a strong pre-approval from a reputable lender can provide more confidence in their ability to close the deal.
Offers from financially secure buyers may be more favourable, potentially warranting greater consideration even if the offer price is slightly lower.
"While it's important to consider these factors, trust your instincts and negotiate when you believe it is in your best interest," concludes Odendaal.
"With a thorough assessment and strategic decision-making, you can ensure you are making an informed choice and potentially secure a better offer for your home - or not lose out on what's already a good deal."
Some of the most important people to know in your local community are the estate agents operating in the area.
In an article published in April 2023 Seeff Property Group, explains agents do not only sell or rent property on behalf of their clients, but also have their ear to the ground in terms of what current property values are, how much properties might sell for, and what is happening in the property market.
With so many newcomers to the market, often making lofty promises of high prices and quick sales, it is easy for sellers to get caught up in the hype. A property which simply sits on the market with no or low offers can be very frustrating for buyers.
The role of a good agent in getting your property sold as fast as possible, and for the best possible price cannot be overstated, says Samuel Seeff, chairman of Seeff. A bad agent could leave you with a lengthy and frustrating sale process.
Regardless of when you are selling, but especially in the current market, it is important to ensure you choose the right agent for your property and market. If you are not aware of who the best agents in your area are, ask around for recommendations from neighbours or friends.
Always meet the agents in person before appointing them:
This will give you a chance to ask questions and assess the agents. Check how long they have operated in the area. Each area is different and local expertise is a vital point of advantage for any seller.
Look for a successful sales track record:
Ask for a list of their recent sales in the area, how long it took to sell, and the prices achieved. A strong sales record is an important indicator of the likelihood of success and that the agent could find the right buyer for the property.
A strong brand and network is another advantage:
An established brand will have a strong online presence for maximum exposure of your property backed by the latest technology and marketing and sales methodologies. They will use best practice to market and sell your property.
Look for someone who will assist every step of the way:
Selling a property is a complex process with many legalities to be taken care of. A good agent will explain the process and guide the seller to ensure they have all the necessary documents and maintenance done for an efficient selling process.
Choosing the right agent to sell your home cannot be over-emphasised, especially if you are selling right now as you will not want to waste time, says Seeff. Choose the right agent and ensure you follow their advice.
Author: Team Seven