In This Guide

choosing an agent

Conveyancing

Holding viewings

Negotiation

   1. Introduction

   2. Fielding offers

   3. Buyer and seller positions

   4. When its not selling

   5. Final reminders

Planning your sale

Prepare your home

Seller's Packs

Selling at auction

Selling in Scotland

Selling privately

Selling your home

Using estate agents

Country Guides

• All Guides

All Countries:

• Brazil
• Bulgaria
• Cyprus
• France
• Italy
• Panama
• Poland
• Portugal
• Spain
• Turkey
• USA

Negotiation

Buyer and seller positions

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When you are negotiating, your position and that of the buyer can greatly affect the outcome of your discussions. If you are standing on their head, then you have a much better chance of success. Similarly if you try and take refuge beneath a table, you won't project the air of confidence necessary to get the best deal possible. In all seriousness, there are some factors that can strengthen your hand as a seller, as well as some reasons that may persuade the buyer to increase their offer:

Apart from meeting the asking price, there are three main things that can encourage a you to accept a buyer's offer:

1. Not being part of a chain.
If the buyer is relying on a chain of sales in order to be in a position to proceed with the sale, this is usually a big disadvantage. It means that you cannot set a firm completion date and expect with reasonable confidence that everything will go through in time. There are various groups of so-called 'hot buyers' who are not part of a chain, each of which is briefly discussed in our guide to buyers:

• Between homes
• Investors
• Cash buyers
• First time buyers

2. Pre-qualification.
This is where the buyer has made sure that a lender will offer them the amount of money that is required to buy the home. At a minimum, pre-qualified buyers will have gained an agreement in principle from a lender, subject to a valuation. It is also possible to actually get a letter from the lender advising the seller of the fact that they are willing to advance the buyer the necessary sum of money to buy the property. Again, the main reason for doing this is to show that they are a serious buyer who will be in a position to guarantee swift progress with the purchase process once the sale has been agreed.

3. A large amount of work being required on the property.
Sometimes this is accurately factored into the price and sometimes it is not. You may find that interest in the property falls away once the extent of the work required becomes clear after a survey, in which case it can be worth listening to offers.

Basically, your own position boils down to how likely you are to find another buyer at the asking price within your desired period. A number of things can be used as indicators for the chances of this happening:

1. Level of interest
The single most important factor that can strengthen your hand is competition. The more people interested, the more pressure buyers will feel to offer as close to the asking price as possible.

2. Current market conditions
If there is widespread press coverage about the fantastic buying prospects in an area, you may be able to get a better price. But if rates have shot up, making mortgages much more expensive to borrow, you may struggle to find a buyer at your asking price.

3. Length of time on the market
The longer your home has been on the market, the more chance there is of a buyer coming in with an offer well below the asking price. You have to assess whether it is worth risking turning it down, as you may not get any more for just as long.

4. Time pressures
The amount of time you have to play with can be one of the most important factors in whether you decide to accept an offer that you would otherwise feel is undervaluing your home. If you are in a real hurry, you are more likely to accept a lower offer, so try not to let the buyer know this fact during any initial negotiations.

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