How to Negotiate The Perfect Offer
Shock news, are you seated? The ‘Perfect Offer’ isn’t always the highest price offer! Read on.
Whilst price is often the driving factor for vendors, there are two other criteria that come into play.
· Timing – if there is a timescale in which a vendor wants to move, the ability of the buyers to meet a particular timescale can be as important, or more important than price
· Security – particularly for vendors who have previously been burnt by chains breaking down or buyers pulling out, the security of the offer received may be as important as the price.
It’s important that your agent has taken the time to understand where these factors rank for you in your selling decision. Then when you have potential interest from a buyer your agent will be able to work in harmony with you to assess how far to push on price, or whether other aspects make the offer more appealing and one which you want to nail down quickly.
When you receive an offer, the following steps apply. By law, estate agents have to pass on every offer they receive to the seller even if they think they know it will be declined.
- Receive the offer in writing - a telephone call would normally precede a follow up email. This will reduce any chance of confusion or discussion later.
- Find out more about the potential buyers’ position. The agent should have checked that the potential buyers have a mortgage agreed in principle or that they don’t need a mortgage. They should also know whether they have a property to sell and if it is under offer, as well as any other circumstance that affects your decision on whether to agree e.g. if they are moving for work reasons which might mean a firmer commitment to your sale.
- Prepare to negotiate. All negotiations are conducted via your estate agent. When you receive an initial offer it is likely to be below the asking price. You are entitled to take your time considering it. Be willing to go back with a counter offer and wait for them to consider it. There may even be a series of offers in the negotiation process. Your agent will advise you on what is reasonable and likely to achieve the end result you want.
- Protect your sale. If you accept an offer and agree to take your property off the market, you need to agree the next steps quickly and the agent should confirm whether it is wise to do so.
In the type of buoyant property market we have experienced in 2021, where there remains a shortage of properties and pent-up demand from the pandemic and stamp duty holiday, buyers have been able to push for above asking price in many cases. Savvy agents who understand the market and selling priorities can take interest from more than one buyer to a ‘sealed bids’ situation. Then they ask each interested party to submit their best offer, sometimes with additional supporting information, by an agreed date and time. Essentially, the vendor gets to choose who they want to sell to. It may be that the person who offered £10k over the asking price is still not as desirable as the person who offered £8k over but isn’t in a chain and doesn’t need a mortgage. Some agents will steer clear of managing sealed bids because it is an emotional situation which can be difficult to manage from a people perspective, but it frequently leads to a ‘perfect offer’ once the dust settles.
Receiving an offer on your property is a really exciting time and at Capital Estate Agents we recognise that it can be stressful too. Many people judge an estate agent on how well they promote the properties on their books. In fact, it’s the work that goes on behind the scenes in guiding both parties to seal the deal on the best offer, and from that stage working closely with the conveyancers (on both sides) to keep the sale on track through to completion that is equally valuable.
If you have any questions regarding how best to achieve your perfect offer, Capital would be delighted to hear from you: : info@capitalestateagents.com / 0208 313 0010