You just listed your home and you have already received an offer. It isn’t perfect, but it seems reasonable. Should you take it?
Refusing a reasonable offer because it is early in the process is one of the Seven Seller Sins. You can read about all seven of them by clicking here.
As humans, we are constantly asking ourselves, “What if?”
When we get an offer soon after listing our home, that “what if” question hits us. Sometimes it hits us hard!
What if a higher offer is out there?
What if we leave money on the table?
What if someone wants to buy with cash?
In other words, what if a better offer could come in?
Predicting the future
The truth is that there may be a better offer coming. Then again, you may already have the best offer in front of you.
None of us have a crystal ball so there is no way to know for sure. The best way to make this decision now is to fall back on your goals. You can avoid the stress of the “what if” game by discussing your goals before you list.
Here are some of the discussions you need to have:
- How much do you need to net on the sale? How much cash will you need to put in your pocket to make it worth your while? Keep in mind all the fees that will come out of your sale. You can use a net sheet calculator to help you figure it out. If you read about Seller Sin Number 1, your price should be correct. (click here to read number 1)
- What offer structures will you consider? This includes the type of financing, the timing of the move-out and close, and any contingencies.
- What is the current range of sales prices for a home like mine? And what is the range of offers that I would consider? Too low and you might not hit your net. Too high and it may not appraise.
When you have these discussions up front, before there is any risk, you can set your foundation.
Making the decision
At this point, you know what kind of offers you will consider. When you receive an offer, you can go back to your foundation and see if the offer lines up with your goals. If the offer doesn’t line up, you can counter with an offer that makes sense for you.
If the offer does line up, take is serious. It meets your goals and gets you what you want. And though it may not be perfect, ask yourself another question. If your home sat on the market for another 30 days, would you take the offer?
Real estate decisions are often tough. But by having important discussions early, you can make better decisions when it matters.