Could I reply to a buyer's offer within a reasonable timeframe?
Don’t Play Hard to get,
but Don’t Seem too Eager
Is it acceptable to keep a buyer waiting for too long? The answer depends on a number of factors, just like in so many other situations. You may be given a deadline by buyers to respond to their offer. It might seem high-handed, but in reality, it’s just part of the process. It is just as stressful for buyers as it is for sellers, and they do not want to wait for days for a reply. The deadline will let you know how much time you have to consider it and respond.
It has been the rule of thumb for agents to respond to offers within 24 hours for many years. However, when you sell by owner, there are so many considerations that you may not be able to respond that quickly. A number of factors need to be taken into consideration when you decide how to respond to a buyer’s offer.
You should take into account your current position. You may want to formulate your response more quickly if you have been on the market longer than you had hoped, and the offer is within your acceptable range. This will ensure that you do not lose your buyer. This scenario might work well with a 24-hour turnaround time.
Providing that the offer is at least minimally acceptable, constructing a counteroffer may take some time. You don’t know whether the buyer will accept your counteroffer, so you might just benefit from letting them stew for 48-72 hours. It would be a good idea to let the buyer know what your timeline is via email if you choose this route. Do not divulge any information about your response. A low offer isn’t worth waiting for. It is best to reject the offer immediately and let the potential buyer make a better offer on his or her own.
If you are selling your home without an agent, when should you accept or reject an offer?
It’s official, you’ve got an offer on your house. You did all the hard work in getting your home ready to sell, pricing it correctly, and marketing it without an agent’s help. After you have received the buyer’s offer, you must decide whether or not to accept it. Taking such a crucial decision requires a lot of consideration. The following information will help you decide what to do if you have a pending offer on your home.
What is the best time to accept an offer?
There Are Too Many Concessions
Potential buyers typically ask for concessions during the selling process. However, if these demands become out of control, you may need to find a new buyer. For example, you may be asked to pay all closing costs or install new windows as part of some unreasonable concession.
The Financing Has Not Been Set Up
In the event that a prospective buyer puts in an offer for your home but he or she isn’t mortgage-preapproved or doesn’t plan on paying cash, this should raise a red flag. Before starting their home search, serious buyers should have their financing arranged or their closing could be significantly delayed.
The Right Time To Reject An Offer
It’s important to receive strong offers as quickly as possible when listing your home for sale. The reality is that this does not always happen. You may occasionally receive offers that don’t appeal to you. The following examples illustrate when it is a good idea to reject a buyer’s offer.
Buyers Who Won't Negotiate
There are times when buyers are unwilling to budge on numbers in the real estate selling process. Consider rejecting the buyer’s offer if your house is worth more than the offer they have made.
Decision-Making
In the end, accepting or rejecting an offer is up to you, but thinking through some of these scenarios can help you make the right decision.
How To Evaluate A Buyers Offer:
It’s essential to determine whether the buyer can fulfill the terms of the contract with financing as you analyze any purchase offer and decide how/when to respond. If possible, request that the buyer provide a letter from the lender stating that they have been prequalified or preapproved for a loan.
Upon confirming the legitimacy of the offer, consider the following factors:
- Is the offer close to your asking price?
- Are there any other offers?
- Would it be possible to wait for more offers to come in?
- What do you plan to do if there are no other offers after a certain date?
- What is the amount of the earnest money deposit? (At least one percent is expected.)
- Is the contract price of your home likely to be appraised at the contract price?
- Do the buyer’s closing costs need to be covered?
- Can you give the buyer a credit for home improvements or repairs?
- Would you be comfortable with the settlement date requested?
Sell Like a Pro: juggling motivation, confidence, and the art of offer
Formulating a response will require you to weigh the answers against your motivation to sell as soon as possible and your confidence that other offers will follow. In negotiations, you’ll be better equipped to offer things you don’t want that much, but that might be of greater value to your buyer if you’ve carefully considered and decided upon your own priorities. Negotiations can be smoother and more effective if you establish trust with the buyer.