Receiving an offer on your property is an exciting moment that can quickly be spoiled if it’s below what you were expecting. Alternatively, you might have been lucky enough to have multiple offers and think you can simply dismiss the lowest.

But can you really afford to do that?

When looking at the price offered picking the lower offer may seem counter intuitive. However, in many cases it may actually save you more in the long run and so could be one of the smartest decisions you make. Understanding a few key factors will help you assess whether the lower offer is the right choice or whether you should hold out for more.

Does the offer fall within an acceptable range?

Buyers will typically offer between 5-10% below the original asking price. If the low offer is around this level it may simply be typical of the market. Offers of more than 10% off the asking price are less common, however.

Is there a chain?

One of the first things to ascertain is whether or not there is a chain. The lower offer is likely to have come from a buyer who is chain-free and therefore knows that they can undercut the asking price because they are less risky and can move more easily. This makes first-time buyers particularly attractive so long as they have sufficient funds in place.

Can the buyer move quickly?

Understanding the timescale of your buyers may also be important. If you, or they, are looking to move with children then a deal that completes in the summer holidays will be attractive. It allows for a settling-in period before children start at new schools which will be preferable to moving them mid-term.

Alternatively, you might be in a rush to move and will accept less for a buyer who is able to facilitate that. They could be a cash buyer, have already sold their property or have a mortgage agreed in principle that allows them to react faster.

Are higher offers serious offers?

If you have a higher offer on the table you may want to consider how serious it is. Does it have the potential of a buyer withdrawing their offer or do they seem committed to a deal? Understanding how ready they are to move and whether they have things in place will help you assess that.

Do you have an emotional reason for selling below the asking price?

Sometimes our heart rules our head and emotions can get the better of decision-making. It may be that you moved into the property about to have your first child and your potential lower offer buyer is about to do the same. It could remind you of your own journey into your property and so you may prefer them as a buyer over someone who is offering a higher price.

Negotiating

Of course, while you may choose to accept a lower offer for any of the reasons above there’s also no reason why you can’t try and nudge the price up. Just like bartering in the Marrakech souks, negotiation is an expected part of the house-buying process with two-thirds (65%) of buyers offering under the asking price according to recent research from Barclays. Don’t be afraid to try to push for more and use the skilled negotiation tactics of your agent to help you to best respond. They will also be the best judge of whether it’s a good offer or not – although the final decision will be down to you.