The highest price and the best offer aren't always the same thing. Here's the six-point test we run before recommending any offer.
 
Raine & Horne Lower North Shore
Team Howe Weekly
24 August 2026
The Monday Newsletter  ·  Real Insight Weekly
 
This Week

Choosing Between Offers

Why the highest price and the best offer
aren’t always the same thing.
 

Dear Readers,

“We recommended the lower offer.”
That sounds wrong. Surely, when several offers arrive, you take the highest? Sometimes — but not always.
A big number in an email means little if the buyer can’t, or won’t, make it through to exchange and settlement.
The Six-Point Stress Test
Before recommending an offer, we test six things:
1.  Finance — is the buyer formally approved, or merely pre-approved? Has the lender valued the property? Is finance still conditional?
2.  Conditions — is the offer subject to building and pest, legal review or the sale of another property? Every condition is another possible exit.
3.  Cooling-off — in most NSW private-treaty sales, the buyer has five business days after exchange to rescind, generally forfeiting only 0.25% of the purchase price. A 66W certificate from their solicitor or conveyancer waives that period. Properties purchased at auction have no cooling-off period.
4.  Deposit — is it the standard 10%, a reduced 5% or a deposit bond? The amount and form matter if the buyer fails to complete.
5.  Settlement — does the timing suit your plans? The best settlement isn’t necessarily the shortest — it’s the one both parties can complete cleanly.
6.  Readiness — has the contract been reviewed, due diligence completed, the deposit arranged and the solicitor instructed to exchange?
“Enthusiasm is encouraging. Preparation is evidence.”
The Maths No Other Agent Can Explain
Buyer A offers $3,500,000 — but finance is uncertain, inspections aren’t complete, they want a longer cooling-off period and only a 5% deposit. Estimated chance of completion: 60%.
Buyer B offers $3,450,000 — finance and valuation are confirmed, due diligence is complete, and they’re ready to provide a 66W certificate, pay a 10% deposit and exchange immediately. Estimated chance of completion: 95%.
On a simple certainty-weighted basis:
Buyer A
$3,500,000 × 60%
$2,100,000
Buyer B
$3,450,000 × 95%
$3,277,500
This isn’t a valuation or forecast. It’s a simple way of exposing the risk hidden behind the headline price. The real question isn’t “who offered the most?” It’s “which offer gives us the best combination of price, certainty and timing?”
The Hidden Cost of the Wrong Offer
Until contracts are exchanged, an accepted offer usually isn’t binding. If the highest buyer withdraws before exchange — or rescinds during cooling-off, forfeiting only 0.25% of the price (just $8,750 on a $3.5m sale) — the campaign loses momentum. Other buyers may have moved on, while those who return often do so with less urgency and more negotiating power.
The eventual loss can easily exceed the additional $50,000 that made the risky offer look attractive.
We Don’t Just Collect Offers — We Strengthen Them
One focused conversation with the leading buyer may be enough to:
 
confirm finance approval and the lender’s valuation
 
complete outstanding inspections and contract negotiations
 
request a 66W certificate and negotiate a 10% deposit
 
match the settlement period to the seller’s plans
 
set a firm deadline for exchange
That can turn a strong offer into a safer one — without giving away anything on price.
Choosing the lower price doesn’t necessarily mean accepting the weaker deal. It means choosing the money most likely to arrive.
“Price is the headline. Certainty is the result.”
Next week: Choosing the Right Agent — the prerequisites most sellers overlook.
 
 
 
Part 2
The Lower North Shore at a Glance 		 
This Week
 
20
New listings
 
15
New sales
 
207
Current listings
2026 Year to Date
 
941
Total listings
 
572
Total sales
 
162
Withdrawn
Where the 941 Listings Went
Sold
572 · 61%
Withdrawn
162 · 17%
On market
207 · 22%
Of the 941 homes listed on the Lower North Shore this year, 61% have already sold — with 20 new listings and 15 sales this week and 6 withdrawn from the market.
 
$2.64B
Total sales volume
 
$3.886M
Median sale price
 
60.8%
Sell-through (572/941)
 
30 vs 88
Days on market: sold vs listed
How homes are LISTED (941)
Auction
 67% (634)
Private treaty
 19% (176)
Pre-2026 stock
 14% (131)
How homes SELL (572)
Pre-auction
 41% (235)
Post-auction
 29% (165)
At auction
 16% (90)
Private treaty
 14% (82)
David’s Take
Everyone books an auction; hardly anyone sells at one. Two-thirds of homes launch as auction campaigns, yet only 16% sell under the hammer — the real deals get done pre-auction (41%) and post-auction (29%). The campaign builds the competition and the deadline; the signature usually happens off the podium. So, a soft clearance rate isn’t a dead market — it’s just where the transaction lands.
The second tell is price and time. Homes are selling ~2.85% under the median ask ($3.886M vs $4.0M), and the well-priced ones move in 30 days while the average unsold listing has sat 88. Price is the strategy: nail it at launch and you’re in the 30-day group; chase the market down and you become the stale stock — and the 17% that never sell.
“Well-priced homes clear in a month. Everything else waits.”
Have a great week.
 
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David Howe
Partner Agent · Raine & Horne Lower North Shore
Charles Tang signature
Charles Tang
Team Howe · Raine & Horne Lower North Shore
Raine & Horne Lower North Shore
Lower North Shore
140 Sailors Bay Road, Northbridge NSW 2063
The Monday Newsletter · Real Insight Weekly

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