When you get the news an offer is pending, you’ll be in one of two situations. You’re in a standard sales process where you must decide whether to take it or not, or you’re in an auction situation and you must decide whether to go to auction or take the offer in front of you.

There are no hard and fast rules about whether to take an offer. Everyone’s motivation is different and markets are different in different regions. What looks like a great offer to one is not acceptable to another. But there is a list of selling indicators you should work through before making a decision about an offer.

If you don’t work through a constructive process, you may just shoot from the hip, so to speak. And those decisions we are inclined to regret. If you do the work at this stage, you should be very clear what to do. Assess your situation by working through these questions. Write down the answers.

First, what is your objective? What was it when you first started out? How does this offer fit with that?

Second, what is the market at present? Look at numbers of  “for sale” and “sold” signs, media reports, buyer activity at open homes, average time on the market, the auction clearance percentage and the state of the economy overall.

Third, what marketing has been done? What advertisements have been placed?

What has the response been? That is, how many have been through at opens and by appointment? How many views have there been on the web? How many people have shown interest? Who are the interested parties right now? What are the offers so far?

Fourth, what is the feedback on the house?

Fifth, how is the price situated? What feedback have you had on it? What’s the gap between that price and indications of value? Have any valuations been done?

What is the agent’s feedback on the situation? If you’re going to auction, answer all the above questions and then examine interested parties in detail and look at how much time is left before the auction.