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Before
you make an offer, be clear that you know the market value of the
property. If you get the chance, have a look at some similar-style
properties on the market in the same area. Find out how quickly
properties are selling and for how much. Speak to other agents ask your
solicitor. Do your own research and it will end up saving you money.
Ideally
find a number of Properties that fit your criteria and make offers on
them all.. Making offers on several properties at once allows you to be
more rational about which one to pursue if or when the initial
rejections come back. Of course if all your offers are accepted, then
you will have to think quickly. Making multiple offers works best when
the properties are being sold thorough different agents.
Most
importantly of all, remember that this is a negotiation process. You are
not walking into a shop to buy something off the shelf. It is rare for
the asking price to get paid, as the price has some flexibility built
into it. Estate agents deliberately mark the property value up since
they know that negotiation will take place. They are usually on a
commission that is a percentage of the sale value, so the higher the
sale price the better for them.
You
should be aware that your opening offer will often go a long way towards
determining the final selling price. It is therefore normal practice for
the asking price to be set artificially high in order to encourage an
opening offer that is higher than it would be with a lower asking price.
Usually, both sides are aware that negotiation is something of a game of
cat and mouse, offer and counter offer.
The
first offer is usually 5%-15% below the asking price, depending on the
perceived level of demand and current market conditions. The two sides
then work towards some common ground with further offers and reductions
in asking price. If the agent can push the initial advertised price up a
few thousand, then the opening offer is likely to be slightly higher,
possibly resulting in a slightly higher sale price.
It is
rare for the opening offer to be accepted, however close to the asking
price it is. Both the owner and the agent will expect you to negotiate.
The more people interested in the property, the tougher the vendor and
agents are likely to be in negotiations. There is no guarantee that you
will get the property for less than the asking price, especially in a
hot market. Don't lose out on the house of your dreams over a few
thousand pounds if you really want the property go for it. Remember also
that the banks valuer will have to agree the price.
Make
sure that the vendor and agent are both aware of the terms of your
offer:
Which
fixtures and fittings are to be included.
What
work if any you want to be completed on the property before the sale is
completed?
Make
sure the offer is subject to a survey and contract. If the survey shows
up something that needs rectifying on the property, don't be afraid to
renegotiate.
Your
offer should always be subject to the vendor taking the property of the
market. |
