There is a common adage in real estate whereby your first offer is often your BEST offer
There is a common adage in real estate whereby your first offer is often your BEST offer – i.e. the person that had the most enthusiasm and interest strikes first, with that enthusiasm fueling the best overall outcome. this often also comes early in a sale campaign, when things are hot, fresh and everyone wants a piece.
Whenever and wherever this nugget of wisdom was coined, it generally holds true, and many a seller has kicked themselves down the track for saying no early and having to accept less later on. As always however, there are exceptions to the rule, and sometimes the first offer is merely a precursor to something bigger and better around the corner.
What do to though, when you accepted that first offer, and then a better option (more money, fewer conditions etc.) is submitted – it’s a conundrum!
While the typical buyer has a number of safety nets to allow for an exit (cooling off period, building and pest clause or finance clause) unfortunately there are very few options for a seller to opt out of a fully executed contract short of a mutual agreement to terminate (rare) – all of them relying on the buyer either defaulting or otherwise missing the ball along the way.
The first potential exit point, and the one to watch out for most carefully is the payment of the deposit – specifically that it is on-time and in the right amount. Failure to pay the deposit as stipulated gives the seller a right to terminate with relatively little fanfare, and given most deposits are due within a few days, its an option that can come up quickly.
The next option we often see is around building and pest clauses, where a buyer is seeking either a reduction in price or other remediation works for a discovered fault. More often than not there will be some level of negotiation where an unknown fault is identified, but again here is an option to say NO rather than work through things, again (potentially) providing an out.
Beyond these, you’re really looking for a circumstance where timing hasn’t worked out and the buyer has needed an extension of time for one reason or another. A note here though, you really should act as reasonably as you can as often these are outside of even an eager and prepared buyer’s hands.
Lastly, you can just ask. Or if the new offer presents a significant financial advantage, see if a shared win with the original buyer can help them make the decision with you. Whatever you do though, speak to your conveyancer, get the right advice and make sure that any perceived new advantage is worth the risks.