You got an offer - woohoo! But of course, that’s just the beginning. Unless you got your asking price, you will want to negotiate:
Sealing The Deal
- Make a counteroffer with an expiration date; if the buyer accepts that counteroffer, they will need to sign the konvenju by a certain time to clinch your lower price.
- Play hardball and counter at a fraction under your selling price. The buyer is feeling you out with their first offer. One strategy is to stay firm… at least for now. It’s risky, as you might alienate the buyer, but you might get a better deal.
- Simply reject a lowball offer. Buyers will get the message that you mean business when it comes to the price.
- Offer to pay all or part of the stamp duty on the buyer’s behalf. That might make the property more affordable if the buyer needs a mortgage, as they won’t have to pay stamp duty out of their own pocket. You may be in a better position to afford this if you use NoAgentFees.com as you will be saving the amount that you would have to pay in commissions to the agency (usually 5% of the sale value + 18% VAT).
- If you have two or more buyers interested, you could go for sealed bids over a certain amount. A notary could oversee this process for fairness. Whoever bids the most on the day… wins! You’ll need to stipulate conditions, such as when the konvenju would be signed and preference for particular conditions such as a cash sale vs a sale using a bank loan.
You also need to ask yourself some questions about the offer to be sure the sale will go through.
- Can the buyer actually come up with the cash? You need to politely ask whether they have already initiated discussions with the bank and whether the bank has approved a mortgage amount, at least in principle, based on the buyers income levels and other factors. Can they provide evidence of the deposit?
- Are they offering cash? If so, you might accept a lower offer, on the basis that the sales process will go much more smoothly.
- What do they want to be included? You might be able to increase the offer if you throw in the furniture or the kitchen appliances, for example.
- Do they have a place to sell? That can cause complications… but if the buyer has already sold, you might agree to a lower price for a smoother transfer.
- Can they put the offer in writing? This helps to focus the buyer’s mind. Remember that the highest offer isn’t always the best. A lower offer with fewer complications might be better in the long term, especially if you have a time pressure.
- When do they want you out?
Keeping these factors in mind will help you analyse how good the offer is and whether you should accept it.