What happens when you receive and accept an offer on your property.

Selling your property is a big step, and receiving an offer is often the moment you’ve been waiting for. But what happens next? How do you know if you should accept the offer or continue negotiating? In this blog post, we’ll break down the steps involved when you receive and accept an offer on your property.

Receiving an Offer

Offers can come in a few different ways. The most common forms are:

Verbal Offers: Your agent may convey a verbal offer from a potential buyer. This can be an informal indication of interest to gauge whether you’re open to the price and conditions.
Written Offers: A formal offer, typically in writing, outlining the buyer’s terms and conditions, including price, deposit, and any contingencies like inspections or finance approval.

It’s important to note that while verbal offers can give you a sense of interest, a written offer is essential for the process to proceed.

What You Can Do with an Offer

Once you receive an offer, there are a few actions you can take:

Accept the Offer: If you’re happy with the terms, you can accept the offer. At this point, your real estate agent will prepare a formal contract of sale, which includes the agreed-upon price and conditions.
Reject the Offer: If the offer isn’t what you were hoping for, you can reject it. If the offer was verbal, you simply need to let your agent know. If it’s in writing, you can reply with a formal rejection.
Counter Offer: A counter offer is a common response when the price or terms are close but not quite right. It indicates that you’re willing to negotiate further, but only if the terms are adjusted. Your agent will help you with this process, negotiating on your behalf to get a deal you’re happy with.

During this stage, your agent’s experience is crucial. They will advise you on whether the offer is reasonable, whether there are other interested buyers, and how they believe they can negotiate to achieve the best possible sale price.

After Accepting the Offer

Once you’ve accepted the offer, the formal contract of sale is drawn up. This includes all the terms and conditions that you and the buyer have agreed upon.

At this point, the sale moves into the next phase, which involves several important steps:

Exchange of Contracts: The buyer will sign a Contract of Sale, which includes the agreed-upon details. They will also pay a deposit, usually around 10% of the sale price. This money is held in trust by your real estate agent until settlement. This step ensures that the sale is legally binding.
Cooling-off Period: After the contracts are exchanged, the buyer typically enters a cooling-off period (usually 5 to 10 days depending on the state). During this period, they can back out of the deal, but they’ll lose a small portion of their deposit as a penalty.

It’s important to note that the cooling-off period does not apply at auctions or during the last few days before an auction.

Settlement: Once the cooling-off period ends, the sale proceeds to settlement. This is the final stage, where all the legal paperwork is completed, and the sale is finalized. The buyer pays the remaining balance of the purchase price, and you’ll transfer ownership of the property to them.

What You Need to Do Before Settlement

Before settlement, there are a few steps you need to take to ensure everything goes smoothly:

Mortgage Discharge: If you have a mortgage, you’ll need to contact your lender to arrange for the discharge of the loan.
Legal Representation: You’ll need to hire a conveyancer or solicitor to handle the legal side of the sale, including the preparation of documents and liaison with the buyer’s legal team.
Start Organising Your Move: Begin preparing for your next step—whether that’s finding a new home or organising your move to a new location.

Once you accept an offer, the sale process moves quickly, but it can also be overwhelming. Understanding the steps involved—from accepting the offer to settling the sale—can help you navigate the process with confidence. Your real estate agent will be your most valuable resource, guiding you through negotiations and making sure everything stays on track. With the right preparation and support, you’ll be ready to complete the sale and move on to your next chapter.

Need help navigating the sale of your property? Contact us at AgentSpot, and we’ll connect you with an agent who can guide you through every step of the process.

Disclaimer: The information in this article is general in nature and does not constitute legal, financial, or real estate advice. While we strive to provide accurate and current content, AgentSpot makes no guarantees regarding its completeness or accuracy. Readers should seek independent legal or professional advice tailored to their individual circumstances.