How do I know if I shoud accept an offer or relist?

[Mark Svendsen]

The trustee did a premature appraisal before staging and before new paint, new carpets, new furnature, and these are the results.

2.40M (1st appraisal) 2.45M LIST (+400K) = 2.855M OFFER

2.65M (2nd appraisal) 2.70M LIST (+400K) = 3.15M OFFER ??

Seven offers, the second top offer of 2.855M was accepted by trustee (I have to accept) or relist for possibly more (3.15M?) The house has been on the market two weeks and is sold with a earnest depost of 40%. The first appraisal was used to set the list price.

Thank you for your educated opinion.

[Ty Coutts]

Hello, Mark Svendsen, based on the information provided, here’s my analysis and some considerations regarding the trustee's decision and your options:

1. As the trustee, there might be legal obligations or fiduciary duties to act in the best interest of the beneficiaries of the trust. This often involves accepting the highest reasonable offer, considering market conditions and appraised values.

2. The house has received significant interest, as evidenced by seven offers within two weeks. The jump from the first appraisal to the second ($2.40M to $2.65M) indicates potentially increasing market value, possibly due to staging and improvements.

3. The trustee accepted an offer of $2.855M, which is below the highest offer received ($3.15M).
Relisting could potentially attract higher offers, especially if the second appraisal suggests a market value closer to $2.65M.

4. Relisting involves certain risks, such as market conditions changing or not receiving offers as high as $3.15M. The earnest deposit of 40% from the accepted offer is a significant indicator of buyer commitment, but it may be forfeited if the deal falls through due to relisting.

While the second highest offer of $2.855M is attractive and already under contract with a substantial earnest deposit, the decision to relist for potentially more (up to $3.15M) involves weighing the risks and rewards carefully. Consulting with a real estate attorney or financial advisor who understands trust law and real estate transactions could provide valuable guidance in navigating this decision, ensuring it aligns with the best interests of the trust and its beneficiaries.

I hope this helps you out, good luck!

[Mark Svendsen]

Thank you for your time. good answer. I will try to find such a person.