Getting the highest price
If you want to get the best price for your property you should ask for above the highest price it is worth – even though this will probably differ from the eventual sale price. Your agent should be able to find people interested in properties like yours and find out the highest price the buyers are willing to pay. If he or she cannot find anyone prepared to pay your highest price, you can then lower the asking price. The level of buyers’ interest should indicate whether your asking price is too high, but be aware that interest with no offers may also reveal something about the house that is putting off buyers. If you receive more than one offer, your agent should give each potential buyer the opportunity to raise their offer in order to give them the chance to secure the sale and get you the buyer’s highest price. You can then decide whether to accept the offer in light of the progress and interest in the sale. There is nothing wrong with wanting to try for a little bit more, however if you know that an offer you have received is the buyer’s highest price you will then be able to make an informed decision on whether to accept the offer.
Offers and negotiations
It may be that the first offer you receive is the one you accept. On the other hand, if the first offers are not as high as you had hoped, don’t get too discouraged. A buyer may simply be testing the price out to see how far you may be willing to come down. It is always useful to try and find out why a buyer is offering a low price – if they have concerns about expensive repairs they will have to carry out, it is possible that other prospective buyers may have similar hesitations. This does not necessarily mean you will have to lower your asking price, but it if you want to make a counter-offer at least you can then get an idea of how much the repairs will cost and take this off your original asking price.
Let your agent do the negotiating
Leave the negotiations to your agent. You are employing him or her to get the highest possible price for your house and the buyer who wants it should have to compete with any other interested parties. When an offer is made, the agent should try and substantiate the buyer’s ability to complete the purchase and get an idea of any time restrictions imposed by the buyer. For example, if the buyer can only purchase once they have sold their other property, you may decide to take a slightly lower offer from someone who has funds readily available. Therefore, consider all the offers and take into account both the difference from your original asking price and the time delay promised until settlement.
Exclude major inclusions from contract
Major inclusions such as white goods, custom made fittings and furnishings, special equipment (security systems etc) should be excluded in the contract for sale. If you offer the buyer the house and the major inclusions (as distinct from basic inclusions such as carpets, curtains, standard fittings etc which should stay with the house) there will be nothing left to negotiate with when the offers come in. For example, if you receive an offer $10,000 lower than the asking price, the agent may be able to attain the asking price by telling the buyer that you are not willing to lower the price but would consider leaving some of the major inclusions.
Accepting an offer
Once you have decided to accept an offer, tell your agent as soon as possible as the buyer is allowed to withdraw the offer at any time beforehand. The agent will ask you to sign a contract agreeing to sell the property and should already have a deposit from the buyer along with a statement in writing of the amount offered. Generally speaking the highest offers should come within 4 – 6 weeks of listing your home. Don’t let this put you off accepting an offer made on the first day if you are happy with the offer and trust your agent has ascertained that the offer is the highest price the buyer is willing to pay.
Lowering the price
If your house has not sold within 6 – 8 weeks of being on the market, it may be time to consider lowering the price. This is a decision you will want to discuss with your agent in light of the market conditions and the offers you may have received but not accepted. Before going ahead, bear in mind whether you have been pleased with the agent’s dealings and advice up to that point. You don’t want to drop your price just because your agent hasn’t been working effectively on your behalf
