You've got the basics of offers down - but what are your options if you receive one? We strongly advise that you never simply close the door on low offers, but counter them instead. We’ve seen buyers and sellers successfully meet in the middle even after starting out with a significant divide.
In some cases, a buyer’s offer may be all that they can afford, but in other cases they’ll simply be “playing the game”, giving themselves more negotiating room, or trying to gauge your reaction. Our negotiation videos can give you some ideas about how to respond in this situation. However you choose to respond, you should be aiming to keep the lines of communication open, and if possible keep the buyer interested. It’s also a good time to think outside of the box, for example – would you be willing to take ten thousand dollars less for a quick settlement?
If you want to reject the offer with no counter whatsoever, we recommend that you do this in writing, including a short, genuine statement as to how you arrived at the asking price, and why your property is worth the price. You should also leave the door open by asking permission to contact the buyer in future should there be any change in situation.
Your other option of course, is to accept the offer outright. The process to formally accept an offer and proceed with the sale varies somewhat state to state but there are a couple of basic steps that are common nationwide. The first step is to ensure you have the full details of the offer including price, inclusions, conditions, and settlement timeframe. Once you should have that, you need to ask for the details of the buyers legal representation. That is, their solicitor, conveyancer, or settlement agent. You’ll also need to give them the details of your own legal representation. The final step you need to worry about is phoning your solicitor, conveyancer, or settlement agent so that they can draw up any paperwork required, and liaise with the buyer’s representation. From this point, your solicitor, conveyancer, or settlement agent will advise you of anything further you need to do, and when you need to do it.
Hopefully by now you’re feeling a little more confident about the sale process. If you haven’t already, don’t forget to check out our other videos on offers and negotiations, or visit us at propertynow.com.au for more expert advice.