Two important things to remember: a house sale is a process, not merely an act, and house prices are quite negotiable as well as flexible.
As already mentioned in previous parts, you have hired a professional to sell your property so you can choose whether you want him to do the necessary negotiations or do it yourself.
If the Estate Agent does the negotiations, then you are leaving the vital part to a professional haggler. Usually, Agents will try to obtain a high a price sale as possible for you, but then again his efforts may be compromised by the fact that he wishes to sell the property as quickly as possible. After all, a high turnover is more profitable for him than a slightly greater sales price. Be sure you keep all lines of communication open and deliberate every move with your Agent because at the end of the day, it is your property we are talking about.
If you wish to do the negotiations, you should be aware that the initial offer is typically 5% to 10% lower your actual asking price. These are the rules of the game, and buyers will expect you to know this already, and to have set the asking price exaggeratedly high.
Negotiation is comprised of two parties: never make too many concessions without receiving something in return. If the seller and the buyer finally meet in the middle, it should be for the reason that both have budged a bit. Remember: YOU are the seller. You can choose who to sell to or not. You are logically in control of the situation.
As previously mentioned, initial offers are commonly lower than your asking price. There is no need to reject nor accept any offer straightaway; observe the buyer’s position first by engaging him in some negotiating. It is perfectly normal for the sellers to take quite some time to think things over before letting the buyer know.
Even when you already accept an offer, it is not yet legally binding until official contracts are exchanged. Nevertheless, if you intend to change your mind the moment a higher offer comes along, you should always tell this to the buyer before accepting the offer. It is never a good practice to merely drop the buyer after paying the legal and administrative expenditures.
Choosing a Proper Buyer
You will have to choose who to sell your property to. When selecting a buyer, there are quite a few factors you should take into consideration:
- Agreement in principle is a mortgage guarantee handed out by the lender. This guarantees you that the buyer truly has the required funds to buy your property. Make sure your chosen buyer has one
- Great offers. The price is understandably the most important consideration, but by no means the dominant one
- The chain. If the buyer solely relies on the proceedings from their own sale, this poses a major drawback to you since one error in the chain can result to the breakdown of the entire thing. Watch out for first-time buyers, cash buyers, and buy-to-let investors
Your negotiating position is mostly influenced by the number of proposals you have established; the more prospective buyers, the better. Your negotiating position can be determined by:
- If your house is in a pretty bad condition, interest will evidently be lower. It is not desirable to wait for too long; the longer the property is on the market, the lesser the price you will get
- The greater the demand, the greater the price you get. This is the key factor influencing your position. If you have a great property, there will be a lot of prospective buyers regardless of the season.
- When the interest rates are pretty low and the neighbourhood you live in is becoming more costly due to latest improvements, you will be able to negotiate a greater price.
Send a letter of confirmation to both the Estate Agent and the buyer once the sale has been arranged. Write all the details, as well as the dates agreed for the exchange of contracts and completion. Attach a list of all the items to be included in the sale as well.
Although this is not an official binding document, it provides a professional touch and helps to remove any complications.
Table Of contents
- Home Selling Guide Intro
- Knowing When To Sell Your House
- Expenses Involved In Selling Your House
- Who Will Sell Your Property
- Valuing your Property
- Choosing An Agent
- Selling Your Home Privately
- Selling A Property At Auction
- Preparing Your Property For Sale
- Property Viewings
- Conveyancing For Sale
- The Sale Completion