Sellers beware, waiting too long to accept an offer could cost you

Accepting an offer can be a stressful experience, especially if the offered price is not quite what you expected. In some instances, such as when the offer is just below the asking price, a seller may also be tempted to think they could get more for the property. This uncertainty can cause delays or might even result in the seller rejecting a viable offer.

Tiaan Pretorius, manager for Seeff Centurion says sellers should always consider any serious offer, especially if it does not include onerous conditions. Holding out for a higher price can be a big risk. The first offer is often the best offer as early buyers tend to be serious, have often been waiting for a new listing to hit the market. They often know a little more about the area, quickly spot a correctly priced property, and tend to be ready to move quickly.

To counter these challenges, sellers should consider:

• Setting a price range upfront. Before simply rejecting the offer, the seller must bear in mind that there is no guarantee of a higher price or a next offer. To avoid this, it is best to establish an acceptable price range for offers upfront, rather than a single fixed price. Offers within this range should then be seriously considered.

• Fresh, new listings have the advantage. When a property remains on the market for too long, buyers often assume that something is either wrong with the property or it is overpriced. At this stage, instead of high-value bids, it may attract opportunistic, lower offers compared to the first offer.

• Avoid price reductions. One consequence of a stagnant listing is often the need to lower the price, says Gerhard van der Linde, MD for Seeff Pretoria East. The risk is that by this time, the most active, serious buyers may already have seen the property and moved on. You can always negotiate higher, he says.

• Your next move may cost more. Sellers should consider the time value of money. If you wait too long for a slightly higher price, the price of your next home may be climbing. You may already have another property in mind, and he says hesitation could cause you to lose that opportunity to a more decisive buyer.

• You may end up taking your property off the market. Eventually, a property which has lingered on the market for too long can become “stale,” and the seller may decide to take it off the market and relist at a later stage. This too could be risky since you may end up not achieving much more than what you could in the current market.

Van der Linde says the best strategy is to partner with a property agent who provides a realistic price assessment based on current market conditions and market experience. Such an agent will already have the right buyer in mind. You should also trust your agent’s advice. They will have a strong sense of whether an offer should be seriously considered, especially if it is in the agreed price range.

Issued by Gina Meintjes