A senior negotiator at a top London estate agency has given britsandmortar.com the following insight into making a successful offer for a property
You now need to decide upon your offer. It is normal for your first offer to be rejected, so you can push the boundaries a bit and you need to work out a strategy for getting the best price. In the current market (early 2006) average selling prices are around 92-94% of the asking price.
Please note this strategy is only a guide, different areas and different properties may require completely different approaches, particularly if the property or area are highly desirable.
Here our simple steps to help you through the process of making an offer:-
Step 1 – First Offer
Go in lower than the asking price. Make sure you tell the agent that you are keen though so it is not a “hollow” offer. Also say you want all fixtures and fittings included even if you don’t actually want them. It is a negotiating tool.
Give the agent a deadline for a response to get back to you within 24 hours and say that the offer stands until then.
Step 2 – Vendor feedback
When the agent responds and probably says no, ask the agent why it was rejected. Find out what the vendor will be prepared to accept. Then tell the agent you will think about it.
The agent may well now tell you that there are many viewings of the property coming up (this is a classic estate agents negotiating tool). Do not be pressurized, keep calm. Tell the agent you will go away and think about it.
Step 3 – The final offer
Go and sit down and re-evaluate your position and formulate your next move. You may decide upon another offer and it could be rejected. Try instead the final offer approach “we will offer you £X”. Tell them this is your final offer and it is open, for say 72 hours. Tell the agent that you are also planning to view properties from their competitors down the road as well. It just keeps the agents on their toes. No agent wants to lose a hot buyer particularly to a competitor! This way you stay in control.
Step 4 – Walk away or renegotiate
If still no agreement has been reached and you still want the property, then look at other methods of negotiation
For example say, “Ok, the same offer but you can keep the fixtures and fittings” or alternatively maybe use the completion date as a bargaining tool or even ask the vendor to complete some changes eg decoration or new carpets. Also don’t be afraid to speak to the vendor and gauge why you have not yet reached an agreement.
Step 5 – Offer accepted
As soon as the offer is accepted, make it a condition of the offer, that the property is immediately taken off the market. A great tip is to double check the agent does this by getting a friend to call up a few days later to request details for the property and see what the agent’s response is.
If accepted, congratulations you are one step closer to becoming a new home owner – now it’s just the legal bit !!
Now read step 3 in the house buying guide to find out about the buying and conveyancing process.
