Should I Accept the First Offer I Get?

Short answer: In most cases the first offer is better than people assume. The buyers with the strongest interest in a property usually bid first, and in many cases the first offer turns out to be the highest and best price that comes in. Even so, you should always use the response deadline you have for answering the offer – another offer can arrive within that window, and if it does, the first bidder may well raise their own offer.

Why is the first offer often the best one?

Someone who makes an offer straight away has already made up their mind. They have probably been searching for a while, they know the prices in the neighbourhood, they know what comparable properties have sold for, and they can see that your property is the right one. That buyer is not testing the water – they are trying to secure the property before somebody else does.

Buyers who bid later are usually in a completely different frame of mind. They have watched the property sit on the market for some time, they know nobody has taken it, and they assume the seller is starting to get restless. That attitude rarely produces a higher price.

This is also one of the reasons the first days on the market matter most. When a property is marketed hard from the very start – with high-quality photographs and paid advertising on social media, which is Baldur fasteignasali’s speciality – the whole pool of interested buyers sees it at the same time. That is when offers come in early, and when more than one of them comes in.

Use the response deadline – always

When a kauptilboð (a written purchase offer) comes in, you have a set period in which to answer it – usually one to two working days. You should use that period, even if you are reasonably happy with the offer. There are two reasons:

1. Another offer may arrive. It happens regularly that two offers come in within a few days of each other, simply because two people were thinking it over at the same time.
2. Competition raises the price. If a second offer arrives, the first bidder no longer has the property to themselves. At that point it is common for them to raise their offer in order to secure it.

What you should not do is drag out your answer unreasonably, or let the deadline expire without responding. That signals that you are not serious, and an interested buyer can simply look elsewhere.

A typical response deadline on a kauptilboð is 1–2 working days. That is not a long time, and that is precisely why it matters to have thought through in advance which price and which terms you are prepared to accept – then you use the deadline to let the market react, rather than using it to make up your mind.

What do you look at besides the price?

The highest number is not always the best offer. When you weigh offers against each other, the following matters:

• Conditions. An offer conditional on the sale of another property is less secure than an offer with no conditions.
• Financing. How far along is the buyer with their loan arrangements? Note that a preliminary greiðslumat (a lender’s affordability assessment) is not binding – the buyer applies for the loan after the offer has been accepted.
• Payment flow. What proportion is paid at kaupsamningur (the binding purchase agreement), and when does the final payment come?
• Handover date. Does it suit you, particularly if you are buying a property yourself at the same time?

An offer that is slightly lower but completely free of conditions can be worth more than a higher offer that hangs on the buyer managing to sell their own property.

In short

• The keenest buyer usually bids first, and often highest.
• Always use the response deadline, normally 1–2 working days, before you accept – another offer can arrive in that time.
• If more offers come in, the first bidder often raises their own offer.
• Judge offers on their conditions, financing and handover date, not on the amount alone.
• Strong marketing right at the start of the sale is what makes more than one offer possible.

Frequently asked questions

Can I hold off on answering to see whether more offers come in? Yes, and that is exactly what the response deadline is for – typically 1–2 working days. You may use all of it, but you should not let it expire without answering; that can cost you the buyer.

Is the fasteignasali allowed to tell other interested parties that an offer has come in? Yes, and it is a normal part of the sale. People who have viewed the property are told that an offer has been made so that they get the chance to react before the deadline runs out.

Get in touch

It is rarely obvious whether to take the first offer or wait, and assessing the conditions and the payment flow can matter more than the price itself. Contact Baldur Jezorski, licensed real estate agent (löggiltur fasteignasali), on 450-0000, or send a message via 450.is, for advice on how to assess the first offer on your property and how to make the best use of the response deadline. Free and with no obligation.

Related articles

• How Do I Respond to a Low Offer on My Property?
• What Kind of Counter-Offer Should I Make?
• What Is a Binding Offer on a Property in Iceland?
• Can I Reject an Offer After I Have Accepted It?

Thinking of selling? Get a free valuation from Baldur Jezorski, licensed real estate agent in Hafnarfjörður, reply within 24 hours.

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