Holding out for a higher bid

Just like a game of poker, deciding whether to stick or twist when you receive an offer to buy your property can be a tricky call to make. So let’s look at the debate from both sides in more detail to help you decide which option is best for you.

Sticking with an offer

The old saying goes that a bird in the hand is worth two in the bush, and at least to a point, that’s right. Accepting an offer in the hand means your property will (save any unlikely disaster) sell, and you can move on to the next chapter of your life. And who doesn’t like a bit of certainty in this crazy game of life?

This is a particularly good option if the price on offer already meets (or exceeds) your expectations. You’re not being greedy but are accepting an offer for your property that you feel is fair and that allows you to buy your next property or allocate the money to fund other projects.

On the flip side, you may be desperate to off-load the property for whatever reason, or there could seem to be no sign of any other offers coming through. Of course, the latter is indicative of a falling or stagnant market, in which there are limited buyers. Also, those who are looking to buy will be showing restraint in their offers as they try to bag a bargain. As such, it may be a wise financial decision to accept the offer in hand, instead of risking the property lagging on the market indefinitely.

Pushing the price higher

Choosing to wait for a higher offer is not just the domain of property sellers. Sharemarket investors often hold out for a higher price when it comes to a corporate takeover, for instance, and the very notion of auctions – property auctions, antiques auctions, automotive and industrial goods auctions and so forth – is built around the concept of waiting for the price to go as high as possible before selling.

Deciding to reject any offer in the hope of receiving a higher one is always a gamble. When choosing this option, you should consider both the overall strength of the property market in your area as well as the level of interest so far in your property. Chances are that when property prices are rising strongly and you’ve had a flood of people through the door during inspections, holding out for a higher offer may not be a big risk at all.

The most enticing situation to hold out for is when you have more than one buyer competing for the property. In this case, you can play each buyer against the other until either you reach a price you’re happy with or you hit the point at which one offer comes up trumps.

Of course, the ultimate decision of whether to accept or reject an offer or bid for your property really depends on your individual circumstances. Leave emotions at the door and look solely at the facts of the situation and the level of interest in your property, then discuss the situation with your agent before making a decision that reflects what is best for you.