Not everyone is born with the innate ability to negotiate. But, it’s always worth learning how to negotiate when it comes to the sale of your home. One of the best ways in which you can do this is leveraging the experience and knowledge that your estate agent possesses.
Let’s dive into the ins and outs of negotiating to get the best possible price for your property.
Typically, negotiations between buyers and vendors are conducted through the estate agent, although this may differ if you’re selling your home with an online agent. Your estate agent should always ensure that your best interests are represented. Our primary objective is to secure the most favourable deal for you, which is not always solely based on the highest price.
It’s important to consider what the buyer brings to the table, such as their ability to move swiftly or offer a cash purchase, and align their offering with your own requirements. As an example, if you’ve already found your onward purchase, the ability to move quickly may be high on your list of priorities.
A good estate agent is proactive, communicative, and advises you on the right type of offers while keeping you informed throughout the process. However, it’s essential to remember that you’re in control of the final decision. Ultimately, you have the final say on whether to accept an offer or not.
In a seller’s market, where demand is high, it’s typically easier to negotiate a higher price. With several offers on the table, you have more options to choose from and can select the most appropriate buyer based on what you need from the sale of your home.
If you are looking to sell your home and want a tighter grasp on the negotiation side of things, we’ve put together a number of house price negotiation tips for sellers to get you started.
Know the value of your house
For both buyers and sellers, it’s crucial to conduct thorough market research on the current area and recent property sale prices. This will give you an accurate understanding of the property’s actual value.
Your estate agent should help with this, as they will have intricate knowledge of the local market and be able to share, based on their professional experience, how setting the right asking price is the key to obtaining the right offer, in the right timescale.
Learn more about your buyer
Once an offer has been made, take the time to gather more information about the buyer. Is the buyer paying in cash or will they need a mortgage? Are they a first-time buyer or have they purchased a property before? Do they have a conveyancing solicitor ready to go? Are they selling their own property or in a chain? Will they be renting a property? Collecting these details will provide insight into their level of organisation and commitment.
This is a great example of a situation where you can leverage your estate agent’s experience and advice. Your estate agent should have collected all of this information when obtaining the offer, so it should just be a case of asking them for the info.
Get your property sale ready, not market ready
Get organised to get ahead. At the beginning of the selling process, make sure to collect any guarantees for things such as building safety certificates, boiler service records, and other necessary documents. This helps to demonstrate to your buyer that you are committed and well-prepared for the sale, which can be a valuable bargaining chip during negotiations. By having these documents ready, you can ensure a smoother and faster transaction for both parties.
Use your estate agent’s experience and knowledge to advise your actions
Seek advice from your estate agent to determine whether to accept, counter, or reject the offer. They can leverage their experience in the field to provide their expert opinion on the buyer’s potential, level of interest in the property, and whether it’s worthwhile to wait for a better offer.
Explore the realm of sealed bids
If you are selling a home that has generated significant attention, you may want to think about using a sealed bid approach. This method is similar to an auction where potential buyers submit sealed single bids to your estate agent. Since they can only submit one bid, they should be encouraged to offer the maximum amount they are willing to pay. You should seek advice from your estate agent whether this is the right thing to do for your situation. It’s not always necessary but is an option to explore when required.
If you receive an offer that doesn’t meet your expectations, don’t panic – you can always counter-offer. If you want to negotiate, your counter-offer should be lower than the asking price. However, ensure that the price you suggest aligns with your research on the property’s value.
Alternatively, instead of reducing the price, consider completing any necessary repairs or offering to include furniture items the buyer may desire if there are any issues with the property or if the buyer expresses dislike. Seek advice from your agent if you have questions concerning this. The estate agent should know enough about the buyer in question to know what’s important to them, what their budget stretches to and should be able to advise on a strong counter-offer.
For expert advice on all things property or for a free no obligation market appraisal, do contact your local Sims Williams office. We are here to guide you through every step of your journey, providing professional advice, support and guidance you can trust.