Why Rejecting The First Property Offer In Singapore Could Cost You
Imagine you’re a property agent, and the very first offer for a property you’re selling is very high.
That’s a good thing, right? Logically, yes. But once you factor in how people think and behave, it gets more complicated and can be worrying for realtors. A property agent can spend many more hours pondering how to break the news of a high early offer, compared to a later one. I’ve mentioned the nature of price anchoring in other articles before, but this is a different manifestation.
To understand this, we need to consider the “lifespan” of a listing.
When a property is first listed—or fresh, so to speak—inquiries and offers can come in fast. Buyers who have been scanning the area or project for some time are quick to notice and want to compare the new player. After a certain period, say two to three weeks, the excitement tends to die down a bit, and fewer offers may emerge.
After a listing has been around for months, it’s said to have gone stale, and offers tend to be both fewer and lower (because buyers assume something is wrong with the property, and that’s why no one is biting).
This means that sometimes, the early offers are the best ones. It’s not always true, but it often is.
The problem is that sellers are sometimes reluctant to accept the earliest offers. If an offer is made within two days of the listing, for example, they may feel it’s too soon and decide to wait for other, potentially higher offers.
This is where the danger of the high first offer comes into play.
Consider a unit worth $1.8 million (for simplicity’s sake, let’s assume that is its true value). The first offer, which comes in mere days after the listing, is for $2.2 million.
The seller turns this down, hoping to hear other offers. But those subsequent offers are more realistic, hovering around $1.75 million to $1.9 million. In the meantime, the first prospective buyers have moved on and bought another property.
The danger is that, due to price anchoring, the sellers may now be unable to move on from their $2.2 million expectation.
They were offered that by the first buyer, so why wouldn’t someone else offer the same? Despite their agent’s pleading, some will insist on holding out until they get another $2.2 million offer.
But the longer they wait, the more stale their listing becomes—and the more unrealistic that $2.2 million amount appears. Eventually, the property agent gets blamed and possibly replaced, while the sellers end up having to wait even longer to upgrade, right-size, etc. It’s a lose-lose situation for everyone involved.
That’s why, when a high initial offer comes in, an experienced property agent would have already done the prep work to manage expectations. They know they need to really drive home the point and get the seller to take the money and run—because there’s a good chance there won’t be a second opportunity. In essence, it becomes the property agent’s persuasive power versus the seller’s desire to throw the proverbial dice a few more times.
This is a good lesson for sellers to keep in mind to prevent self-sabotage:
First, don’t let the joy of a high initial offer lead to unnecessary risks. Have a clear target for how much you need for your property. Once that target is met, take the money and go—don’t tempt fate by seeing if a higher one will come along.
Second, if you’ve already tempted fate by turning down a good initial offer, and subsequent ones are getting worse, then maybe it’s time to let it go. You may have to accept that the opportunity is lost, and take the next most reasonable offer, before the offers get even lower, or stop altogether.
Meanwhile, in other property news:
- For those who need to live near JB, here are the cheapest condos near the Causeway right now!
- These are the best layouts we’ve seen for new launches in 2025, so far in the year.
- New launch two-bedders are so expensive; so why aren’t buyers flocking to resale two-bedders instead? There are some possible reasons.
- Check out how this project blends modern and vintage for a fresh look.
Weekly Sales Roundup (17 March – 23 March)
Top 5 Most Expensive New Sales (By Project)
| PROJECT NAME | PRICE S$ | AREA (SQFT) | $PSF | TENURE |
| CANNINGHILL PIERS | $5,681,000 | 1959 | $2,900 | 99 yrs (2021) |
| WATTEN HOUSE | $5,063,000 | 1539 | $3,289 | FH |
| MEYER BLUE | $4,685,000 | 1528 | $3,065 | FH |
| TEMBUSU GRAND | $4,244,000 | 1711 | $2,480 | 99 years |
| THE CONTINUUM | $3,836,000 | 1292 | $2,970 | FH |
Top 5 Cheapest New Sales (By Project)
| PROJECT NAME | PRICE S$ | AREA (SQFT) | $PSF | TENURE |
| PARKTOWN RESIDENCE | $1,262,000 | 506 | $2,495 | 99 yrs (2023) |
| NORTH GAIA | $1,308,000 | 958 | $1,365 | 99 yrs (2021) |
| HILL HOUSE | $1,358,000 | 431 | $3,154 | 99 years |
| NOVO PLACE | $1,440,000 | 883 | $1,631 | 99 yrs (2023) |
| LUMINA GRAND | $1,461,000 | 936 | $1,560 | 99 years |
Top 5 Most Expensive Resale
| PROJECT NAME | PRICE S$ | AREA (SQFT) | $PSF | TENURE |
| ST THOMAS SUITES | $16,030,000 | 7686 | $2,086 | FH |
| THE ORCHARD RESIDENCES | $9,480,000 | 2852 | $3,323 | 99 yrs (2006) |
| HILLTOPS | $6,235,000 | 1711 | $3,643 | FH |
| BELLE VUE RESIDENCES | $5,450,000 | 2304 | $2,366 | FH |
| NOUVEL 18 | $5,450,000 | 1765 | $3,087 | FH |
Top 5 Cheapest Resale
| PROJECT NAME | PRICE S$ | AREA (SQFT) | $PSF | TENURE |
| VACANZA @ EAST | $728,000 | 484 | $1,503 | FH |
| EUHABITAT | $743,800 | 527 | $1,410 | 99 yrs (2010) |
| THE TAPESTRY | $750,000 | 441 | $1,699 | 99 yrs (2017) |
| LE QUEST | $780,000 | 495 | $1,575 | 99 yrs (2016) |
| REZI 35 | $785,000 | 452 | $1,736 | FH |
Top 5 Biggest Winners
| PROJECT NAME | PRICE S$ | AREA (SQFT) | $PSF | RETURNS | HOLDING PERIOD |
| MEYER BLUE | $4,685,000 | 1528 | $3,065 | $3,615,000 | 26 Years |
| COTE D’AZUR | $3,180,000 | 1539 | $2,066 | $2,190,810 | 23 Years |
| CLOVER BY THE PARK | $3,288,000 | 1733 | $1,897 | $2,017,000 | 17 Years |
| THE TESSARINA | $3,080,000 | 1324 | $2,326 | $1,870,000 | 25 Years |
| SOMMERVILLE PARK | $4,430,000 | 1948 | $2,274 | $1,730,000 | 10 Years |
Top 5 Biggest Losers
| PROJECT NAME | PRICE S$ | AREA (SQFT) | $PSF | RETURNS | HOLDING PERIOD |
| ST THOMAS SUITES | $16,030,000 | 7686 | $2,086 | -$6,300,000 | 14 Years |
| THE COAST AT SENTOSA COVE | $3,290,000 | 2024 | $1,626 | -$1,365,200 | 14 Years |
| THE ORCHARD RESIDENCES | $9,480,000 | 2852 | $3,323 | -$1,357,600 | 18 Years |
| ONE SHENTON | $2,880,000 | 1593 | $1,808 | -$667,320 | 18 Years |
| ICON | $1,800,000 | 1119 | $1,608 | -$270,000 | 15 Years |
Transaction Breakdown
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