Thinking Of Selling Privately? Dealing With An Offer

Selling Privately And Dealing With An Offer

This is the 4th in a series of blogs dealing with the issues surrounding selling your home privately in Toronto.    I wanted to outline that selling yourself is possible, however you had better be fully aware of what you can expect in going it alone.   Like any job you do yourself, you always have to be ready that it will take twice as long and there will be some heavy lifting on your part.    If you have missed it, here are the links to my previous 3 blogs:

Thinking Of Selling Privately  – Determining Price

Thinking Of Selling Privately – Then Sharpen Your Marketing Skills

Thinking Of Selling Privately – The First Couple Of Weeks Are Always painful

Like in my previous blogs on the subject I will look at the issue from both the seller’s and the buyer’s perspective.

From The Eyes of The Seller

After weeks of having your home on the market the day finally arrives where a buyer informs you that they’ll be putting and offer together for you.  This is where all your hard work will be rewarded. If things go as plan you will negotiate an offer, sign the deal and then the only cost will be having your lawyer give it his/her approval…slam dunk.   As both parties gather around the kitchen table, the seller is relieved to finally see an offer and that those damn inconvenient showings will end.  As the buyer informs the homeowner of their great offer, he/she slides it over confidently.  The homeowner puts on their poker face, however their immediate expression shows this is not the offer they were expecting.  The offer is 15% lower than asking, the buyer want all the appliances as well as the dining room set, it’s conditional on financing, insurance, inspection and selling their house and they want to close in 5 months.  So here is where the seller shows this buyer who’s boss:  The counter offer is less $1,000 than asking price, all the conditions are crossed out and the closing date is now 60 days.

From The Eyes of The Buyer

A buyer has been watching a for sale by owner for a couple of weeks and think that these sellers must be desperate for cash if they are forced to sell their home themselves.   So maybe it’s time to put in an offer to see if the sellers will bite.

So the seller is in not paying a real estate agent – Deduct 5%

The house is over priced – Deduct 15%

A buyer thinks an offer of less than 20% of their asking price is fair for this cash strapped seller.   The seller is all smiles when they meet at the kitchen table and our buyers confidently inform the sellers that they are presenting a fair offer for the house.   The buyer thinks – slam dunk.   The seller responds he would burn the place down before they would give it away at that price.  Our buyer storms out the door saying this seller is crazy and they will never sell.

No deal and both parties go their separate ways:  the sellers will continued showings and the buyers will continue to look for a home.