Reduce the asking price or hold out for more? A dilemma many a developer has come across over the years Do we accept a lower offer to get a property sold or do we hold firm on price? The answer… it depends… but basically it’s a sum Let me give you 2 scenarios… 1) An offer comes in on day one at 30k less than asking price and can complete in twelve weeks 2) An offer comes in at week eight at asking price, and again can complete in 12 weeks Which offer should you accept/is the best? Let’s talk it through… Debt/holding costs are £10,000 a month Scenario 1 has holding costs of £30,000 Scenario 2 has holding costs of £50,000 Scenario 1 you walk away with more in the bank, and quicker If your holding costs are more than the discount given then take the offer Lower price More money Quicker timescale If you don’t have debt on the site, then what about opportunity cost Do you want to hold on to a site for the absolute best price or release capital to move onto something else? So all is not what it seems when you focus on the price alone Speed, certainty, price and profit are all very important What do you think to accepting an offer or holding out?

Posted by Sam Bastow at 2025-08-14 10:04:15 UTC