Gwen Pangle's Blog
Let's face it – reviewing an offer to purchase can be difficult. And if a home seller feels unsure about a homebuying proposal, this individual may want to consider rejecting the offer to purchase.
Ultimately, there are many reasons why a home seller may decline an offer to purchase, and these include:
1. An offer to purchase fails to meet a home seller's expectations.
If a home seller receives a "lowball" offer to purchase, he or she may submit an instant rejection. In fact, this seller likely will have no regrets about declining the offer to purchase and continuing to wait for a homebuying proposal that matches his or her expectations.
As a home seller, it is vital to establish realistic property selling expectations before you list your residence. If you set a competitive initial asking price for your home, you may reduce the likelihood of getting lowball homebuying proposals. And as a result, you may be better equipped than ever before to speed up the home selling journey.
2. A home seller has multiple offers to purchase at his or her disposal.
If a home seller receives multiple offers to purchase his or her home, this individual likely has a tough decision to make. Fortunately, a seller can review his or her options and make an informed decision.
When a home seller receives several offers to purchase his or her residence, there is no need to rush to reject or accept a proposal. Instead, a seller should evaluate each homebuying proposal closely and use all of the information at his or her disposal to determine the best course of action.
3. A home seller can afford to wait.
If a home seller lists his or her residence in a buyer's market, the demand for houses may be limited. Conversely, if a seller lists a home in a seller's market, this individual may receive many offers to purchase as soon as his or her residence becomes available.
Sometimes, a home seller who can afford to be patient may choose to reject an offer to purchase in a buyer's market, even if the proposal is competitive. Because if the seller waits for the real estate market to improve, this individual may be able to optimize the value of his or her residence at a later time.
For home sellers who are committed to getting the best price for a home, it generally is a good idea to employ a real estate agent. This housing market professional will help a seller establish a competitive initial asking price for his or her residence. Plus, a real estate agent will set up open house events and home showings to promote this house to potential buyers. And if a seller receives an offer to purchase, a real estate agent can recommend whether the seller should reject, accept or counter the proposal.
Want to list your house and streamline the property selling journey? Hire a real estate agent, and you can work with a home selling expert to evaluate any offers to purchase your residence.
If you are on the fence about whether to accept or reject a homebuying proposal, it is important to remember that a third option is available: countering the offer.
By countering a home offer, you can set the stage for a negotiation with an interested buyer. If a buyer accepts your counter-proposal, you and the buyer can move forward with a purchase agreement. Or, if a buyer rejects your counter-offer, you can always continue to seek out proposals from other potential buyers.
Before you counter a home offer, it is important to know what to expect after you make this decision. That way, you can feel confident about your decision to counter a homebuyer's proposal, even in a high-pressure situation.
Now, let's take a look at three tips to help you analyze a home offer and determine whether to counter it.
1. Assess the Housing Market
The housing market ultimately may play a key role in how a home seller approaches an offer. Because if a seller examines the real estate sector closely, he or she may gain actionable insights that can be used to differentiate a "fair" proposal from a "lowball" offer.
Look at the prices of comparable houses in your city or town, as well as the prices of recently sold residences in your area that are similar to your own. Then, you can use this information to take a data-driven approach to analyze an offer. And if you decide to counter an offer, you can rest assured that your decision is backed by relevant real estate insights.
2. Review Your Home's Pros and Cons
Oftentimes, it is beneficial to consider your house's age and condition as you review an offer. This will enable you to account for any potential home repairs and the costs associated with them – something a buyer also may do before he or she submits an offer on your home.
Don't forget to consider the strengths of your home as well. If you recently performed a series of home upgrades, you probably accounted for these house improvements when you set the initial asking price for your home. Thus, you should have no regrets about countering a home offer if it fails to match your expectations.
3. Consult with a Real Estate Agent
Hiring a real estate agent is crucial, particularly for a home seller who is uncertain about how to proceed with a home offer. A real estate agent can help you evaluate all aspects of a home offer and make it easy to submit a counter-proposal as needed.
Typically, a real estate agent will offer expert home selling recommendations. He or she also will respond to your home selling concerns and questions and ensure you can make an informed decision about any offer, at any time.
Ready to review an offer on your house? Use the aforementioned tips, and you should have no trouble deciding whether to counter a homebuying proposal.