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Offers & Negotiations
Imagine the excitement of
it. The buyer you showed round this morning phones up and tells you, “I’d
like to make an offer on your property.”
I’d like to offer £250,000. Isn’t this great? Unfortunately, your asking price was £300,000. What do you do?
As you have planned your way through this process this will not be the traumatic, nail biting tragedy that it could have been.
The relevant factors are:
How long has the property been on the market and how many people have you shown round?
Have you had any other offers (I know we started implying that this was the first, but work with us on this)?
How many people have viewed who have not come back to you?
Do you have to work to a fixed timescale?
What
type of buyer are they? Timescale, position, chain etc.
See the Best Buyers.
What are the circumstances of you buyer?
Did you set the price high or low?
Is the market rising, falling or stagnant?
Remember that you don’t have to sell to anyone if you don’t want to. You are not going to upset your estate agent, if you have used The-PropertyLadder.com you have no agent. If you feel bad about a buyer just say you have decided not to sell just yet.
The first offer could be as much as 10% below your asking price and is usually speculative. They will not usually expect you to accept. You can take your time considering it or reject it immediately. If it was close to your asking price, you should take longer to consider and may wish to accept it, particularly if you do not anticipate additional offers. Everything you do sends a message to your buyer, depending on the unique combination of circumstances between you both. Be aware of this and take control.
As part of your plan, you should have a target price in mind, which may be the advertised price. Without knowing your exact circumstances it would be foolish of us to give an exact formula. What we can advise you to do is to remember how you felt if you have ever made an offer on a property. If you have never done this, ask someone who has, that will give you an honest answer. Most people have a mixture of excitement, fear and optimism. They hope that the seller will accept or that they have followed the correct strategy to buy at the price they want to achieve.
To be in a stronger position, consider all the points outlined and look at things from the buyer’s point of view.
If you live in a derelict ruin, you may be better taking an offer. Be prepared to have to negotiate brilliantly if you are on a building site and want the maximum price.
After all this your buyer may offer you the full asking price and leave you worrying “Did I ask enough?”
Whatever happens, Good Luck.
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The-PropertyLadder.com. All rights reserved.
Revised: 20 March, 2003.