Today we publish the next of our blogs in our 12-week blog series, THE ULTIMATE GUIDE TO SELLING YOUR HOME.
SELLING YOUR HOME – PROPERTY SALE NEGOTIATIONS
DON’T EXPECT TO BE OFFERED YOUR ASKING PRICE
It is common cause in the real estate market that a property has a marketing price and an eventual selling price. These two amounts are, most often, not the same, as buyers will always try and negotiate on the asking price. As a result, the homeowner, along with the estate agent, traditionally sets a marketing price which can accommodate a degree of negotiation.
How much the buyer’s eventual offer price differs from the asking price will depend on a number of factors. These include how realistic your initial asking price was and how many buyers are competing for your home. In addition, it will depend on what cycle the property market, in general, is in. This is a very important consideration, as conditions cycle between what is termed a seller’s and a buyer’s market.
In a “seller’s market”, properties in general attract more buyers at better offers. There is more demand than supply, which can occur as a result of many contributing factors. This is naturally the best time for a homeowner to market his or her property. A “buyer’s market”, in turn, means the opposite, with the supply of property outstripping the availability of buyers. It means there is more negotiating room for the buyer. This often translates into a downward correction in property prices.
The one positive of having gone through the property marketing process in the detail described up to now is that, by the time you arrive at the point of having to consider an offer from an interested buyer, you will have a reasonable idea of what could be seen as a fair price for your property. Your real estate agent will also lead you with regard to that fair price.
DON’T SELL TO UNQUALIFIED BUYERS WHEN SELLING YOUR HOME
First prize with any offer from a buyer is that it is for cash. In this case, you need to insist on a proof of funds from him or her.
Second prize is that it is an offer where the buyer requires a bond to finance the purchase. In this case, it is best if the party provides you with a pre-approval letter from his or her Bank or mortgage lender.
If the buyer makes an offer subject to the sale of his or her current property, you need to give careful consideration to your own requirements. If you need to sell your property reasonably urgently, you may well not accept the “subject to” offer. With a subject to offer you should, at the very least, ask your agent for some detailed information on the property in question. How realistically is the property priced? Has there been some interest in the area in which the property is located? What is the interest level in the property itself? Has an offer already been received?
Lastly, it is imperative that, when accepting a buyer’s offer subject to the sale of a current property, you set and include a deadline for that sale to be concluded, after which the offer will lapse.
RESPOND PROMPTLY TO A PURCHASE OFFER
When you are selling your home, you may join the buying process shortly. Or you may already be in the process of searching for your new home. When you eventually submit an offer for a property which you have identified as your future home, you will expect the seller of the property to treat your offer with fair consideration and particularly, respond to your offer promptly. You need to ensure that you, as the seller, treat the buyer in exactly the same way.
ENSURE THAT YOU ARE KEPT FULLY INFORMED THROUGHOUT THE CONVEYANCING PROCESS
Next week we provide you with the entire Conveyancing process. Most Conveyancing attorneys will supply you with such a list at the outset of the process and update you on its progress on a weekly basis.
NEXT WEEK: THE CONVEYANCING PROCESS