Negotiations

You’ve done it, you’ve seen a home you want to buy but how much do you pay for it. Before placing an offer you should consider the following

• The current asking price of the property

• The interest level in the property from other buyers. If it is high you might be looking at the asking price or above.

• The seller’s circumstances. They may need a quick sale and be open to an offer, alternatively the seller may still be looking for a property and be in no particular hurry.

• What price you want to start at and the highest you will go. Set yourself a limit but ask yourself ‘Will I pay the asking price and can I afford to do so if I have to’

• How strong is your own position, do you have chain of sales behind you or not, what is your bargaining position.

When you have planned your offer the simplest way to put the offer in is verbally direct to the estate agent, unless alternative requirements are to be met i.e. in writing. A verbal offer is NOT legally binding but if you have to put an offer in writing make sure you write “Subject to Contract and Without Prejudice” on the letter.
When making the offer, an Agent is likely to ask you a series of questions to establish your situation, don’t worry as this is perfectly normal, we are not prying, just looking out for our clients (the seller) best interests. It can also be in your benefit, being forthcoming with the answers to any questions as it gives you a chance to sell your position and generally gives the Agent more confidence in you as a buyer, especially if there is more than one interested party.
The Agent will then liaise between you and the seller to try and negotiate the sale, but remember the Agent acts for the seller at the end of the day so will endeavour to get the highest price possible.