Accepting Offer at Advertised Price

if I advertised a property for $830,000 through an agent and an offer was received at exactly $830,000 a day later would I be obliged to accept it or could I wait a few weeks and see if something better is offered? How does it work in this situation in NSW legally?

 

You are free to accept or reject offers as you see fit. Even if at or over asking price

 

You could wait - but consider the risks in waiting too. You might not get that same offer again.....although you might get something better. It's a slight gamble - chat with your agent regarding their thoughts.

Cheers

Jamie

 

If the sale falls over because you held off accepting an offer for the listing price, will you pay the agent his/her commission? He/she have done their job after all.

 

Have you had at least 1 Saturday open?
Anyway, I agree with Jamie. Talk to your agent. They should have a good idea if it's likely that you'll get a better offer or not. And I'd say if the buyer really wants your home, they'll wait. But I don't know your buyer, they could also be someone of the opinion that any of a half dozen homes works just as well for them. (Perhaps? I'm really not sure how many people buy homes in this manner though). But if they are willing to put in an offer on a contract, they probably could wait at least a few days for a decision. (Make them wait nervously perhaps).

When we bought December 2015 we offered asking price but the vendor took about three weeks before they accepted. We were so happy to get that signed contract just before Christmas (and cooling off finished 31st Dec!)....

 

This is what I'm talking about. When I put a place on the market recently the agent showed me something about that in the contract that I actually have to accept the offer or I pay!!! So I must accept or I pay the agents all their commissions and fees, heck good to know this, I wonder how many people have been caught out with this? Just lucky I put the max price I think it will get. What about if the agent recommended 10k less than what I listed it as, do I have to accept the price they appraised it at or pay the agent if someone offers that amount?

 

Unfortunately, you have chosen the wrong selling agent who is more interested in their own financial gain than your own. Trouble is you have a contract stating you will pay them commission if a full asking price offer is attained. Not a good position for you.

 

oh heck, now I'm too scared to look at the contract as it could make me feel terrible reading all the fine print. I did rush into signing them as I wanted it on the market quickly and the agent has a good sales record. I guess it shows how good they are as they had me signing off before I woke up and realized I should have taken it to a solicitor or read the fine print overnight. I think the agent is good but maybe the agency is not so nice.

 

On a side note, you cannot contract against any rights you have under consumer law etc... but I feel for you... to get an asking price offer in first day is an indication it may have been priced a bit low, but it may also be on the money and someone has seen the value.

 

In my experience of buying, this is a common mistake many vendors make, ignoring or not taking the first genuine offer, I have seen many places where the offers have gotten lower as time passes.

Now you say you set the price of what you wanted, if you have a genuine offer with somebody able to complete and at asking price, what exactly are you waiting for ?

 

If you're happy with the price then what's the matter, quick sale means more cash in your pocket sooner!

 

Why would you ask the agent if they think a better price will come along. They didn't even expect the asking price and underpriced it in the first place

 

Have you had an open yet? buyer may think its under priced and wanting to get in before anyone else does?

 

the extremely bullish market here at the moment brings up crazy offers though

 

I'm not sure what you mean with this, how does this work? thanks

Also, I should mention this is hypothetical, I have not got an offer yet and my place will go on the market in a few days. i wanted to make sure I know where I stand in case the agent says we got an offer at $XXX and you must take it as that is close to the asking price or you must pay my thousands in commissions and fees.

if there is an offer close to what I want then I would probably take it anyway. I told the agent I want 820k so I asked them have it listed it at 830k as most buyers make offers a little less than the asking price.

 

Every agent I have ever dealt with loves to negotiate, so hopefully yours will try to get you a good price. It's a situation where you both benefit from a higher price. The agent gets more commission if they sell for more.

 

Ask the agent if this is the guy's best offer/if they'll come up a little more ie leave the gate open without a firm 'MI's so if they don't raise the offer you can still accept it.

 

Curly one that one. I had a property listed and before sign went up I had a offer at our price on Friday. You start to doubt and question if you can get more. Agent was great and said he thought we should leave it open for a few days to soak up the locals who are out looking at new listings and he ran opens on Sat + Sunday specifically for that. Sure enough days later we had three bidders. One was tight on cash but two went hard and up went the price. I recall $14K ($440K asking back then)....We didnt want to lose those competing bids and I think our new agent read it well.

 

Often the first offer can be the best one.

 

My sister and her husband had 14 offers on their Castle Hill townhouse with the first open... was listed 660k, sold >770k.
Extremely hot market.