I absolutely feel you. It’s completely normal to be checking your email constantly when you’re waiting on (hopefully good) news. In an ideal world, the agent would have responded when you submitted your offer to let you know when you will likely hear back. You can always shoot them and email and ask for a timeline—that’s a perfectly reasonable request.
In regard to what’s happening on the other side while you’re obsessively refreshing your phone, it changes with every sale. It could depend on:
The agent will collect all the offers and present them to the seller, along with recommendations. These recommendations are based on what’s happening in the market and what the feedback is from people attending open homes (you know those calls you’re getting on a Monday from agents? That’s them seeking feedback so they can advise the seller).
Note: it is always the seller’s choice whether to accept an offer. Sometimes we’ll suggest they take an offer because we believe it will be the best they’ll get, and the seller will choose to hold out for a few weeks to see if something else comes in.
If the offer isn’t high enough, or if there are multiple offers, the agent may then begin negotiations, inviting you to increase your offer. We’ve got some negotiation advice here.
If you’re successful:
Then you commence with the champagne, calling everyone you know and getting a solicitor.
If you are unsuccessful:
When the market is hot and there is a tonne of buyer demand, we have seen 2-week on-market campaigns where offers are requested by a day and time, and all these offers are presented to the owners for a swift decision. Buyers may not be given the opportunity to negotiate and the best offer win.
If market is cold and yours is the only offer, things may be different. If your offer is under the listed price and it’s early on in the campaign, the owner might decide to keep the house on the market for a few more weeks to obtain more interest and a better offer from someone else
The seller will usually take into consideration:
Sometimes, two buyers will put in the exact same offer. If neither buyer chooses to increase their offer, the seller may flip a coin, or they may ask for more information about the buyers and choose the buyer they resonate more strongly with. Some sellers prefer to sell to first home buyers rather than investors if the offer is identical, because they relate to the challenge of getting into the market.
Another situation that could occur is the seller accepting both offers and consenting to the issuing of two contracts. In this case, the first buyer to sign the contract, pay their deposit and get their finance unconditionally approved is the eventual buyer for the property. So, it definitely pays to have pre-approval in place and a great broker and solicitor ready to work for you. The agent will let you know if this is the situation you’re in.
Honestly, this is why I love an auction. All the buyers are in the one room, the negotiation is out in the open and the highest bidder wins. It’s a much more transparent way to purchase a home.
Good luck with the application, mate. I hope you get an answer soon.
