Ready to sell your Mosman home?
The following is a common scenario: You have researched the market, kept a close eye on the prices similar homes are selling for and discussed everything in detail with your real estate agent. Your home is looking picture perfect and is ready to pass any building inspection.
In Mosman, auction is the main strategy used by home sellers. This gives you the opportunity to see where the market places your home, and create competition between buyers to increase the price.
However, after an early viewing, your agent comes to you with a pre-auction offer. It’s a good one, but you’re not sure if you can do better.
Is a bird in the hand worth two in the bush, as the saying goes?
It depends on a number of factors.
To accept or not to accept?
This is a question only you can answer, but you can come to a more confident decision with the help of your real estate agent.
Here are a few reasons to accept an early offer:
It meets your financial goals. The money on the table is enough to help you make your next move, with a little left over.
Time is not on your side. If you need to sell quickly, accepting an early offer brings you several weeks closer to settlement. You can also start shopping right away for your next home. If there is one you have your eye on, you’re in luck. Perhaps you can put in an early offer yourself.
You’re not likely to do better. Your real estate agent will help you decide if this is the case. This professional will have an in-depth understanding of current market conditions as well as the number of people who would be serious when it comes to buying a home like yours. If your agent firmly believes (and can share evidence) that this price is the best you’ll get, give the offer serious thought.
Home sales have slowed in your area. Most homes sell within a few weeks of being listed, especially in Mosman. However, if you’re selling over summer when people are away, you risk your home becoming ‘stale’ on the market. Consider how much it costs to own and run your home each week—would taking an early offer balance out an extra six weeks of a sale campaign?
Prices are sliding in the wrong direction. In Mosman this isn’t really a problem in the late 2019 market. However, things change rapidly in real estate. If your agent warns your home may be worth less in the coming weeks due to a forecast of interest rate change or other reasons, you may regret not accepting an early offer.
Why you may decide to hold out for an auction:
Buyers are everywhere. And they’re getting desperate. Your agent will let you know if competition is strong for your Mosman home and if they feel confident you will achieve a higher price at auction.
You’re not desperate to sell. If getting the right price is the only reason you’ll say ‘Sold’, hang on for it. You can always withdraw your sale and wait a few months if the auction doesn’t go your way.
The early offer is unreasonable. The market dictates the value of your home but if your agent agrees the first offer doesn’t match current prices, continue with your plan to see what other buyers are willing to pay.
Often, the first offer for your home is the best one because it comes from someone who has been looking for a long time and has added to their budget so they don’t miss out.
However, your real estate agent is your key source of information and guidance in this situation. They will be able to provide advice based on your circumstances and goals and their understanding of your property’s value.
The final decision is up to you but if you make it in a fully informed way, it will hopefully be the right one.