6 costly mistakes to avoid when selling your home (part 2/6)
Accepting an offer.
This one follows from part one nicely, once you have completed part one you will find yourself with offers on the table (if not, something isn’t right).
BUT. What do you do with that offer?
Well. You have three options.
- Accept it
- Decline it
- Use it.
Now the first is easy, if its to a level you can accept then great. Call it a deal, shake hands and get moving forward. Straight, forward right?
Number 2. This is usually if its way off the market, too low for you to proceed. SOMETHING to remember what you feel your home is worth and what somebody else things it is worth is two separate things.
Naturally, you will want every penny you can making sure you get the most money possible. Naturally a buyer will want the complete opposite to this.
The best thing to do is, before you decline an offer, check your finances and try and make sure you 100% cannot proceed forward with it first. Sometimes you’ll be surprised.
Then comes the third option. ‘use it’… it’s an interesting one. So, what do I mean by this.
Simply. Take the offer that’s on the table, don’t accept it, don’t decline it, but see if you can negotiation enough off of the property you want to buy to make the figures work.
While the offer is ‘on the table’ you could class yourself as proceed-able, meaning estate agents are more likely to discuss your offer further and start the art of negotiation.
For argument sake, let’s say your offer is £5000 less than you wanted. Then simply go and try and negotiate £5000 further of your purchase. If your successful it means you can accept the offer and proceed forward.
So recently I had this. Our clients had a flat on the market at £220,000. They needed £220,000 to proceed for the property they wanted to buy which was listed as £295,000.
We managed to get an offer of £218,000 but the buyer wasn’t willing to go anymore. Now, my clients were willing to pay £295,000 for the property they want and worked all their figures out on this basis. I decided to “use” the offer and go and negotiate on the house for them. I managed to get £13,000 off the asking price. Which mean, even after accepting the offer which was ‘too low for them to proceed’ they were still £11,000 better off than if they just declined the offer and waiting for £220,000 to come in.
This is why its so important to have an agent who ‘advises’ you rather than being a messenger.
Even better, get an agent who is willing to negotiate on your purchase for you. After all, if they negotiate enough off, you may be able to accept that offer which seemed too far off the mark.
If you take one thing from this. Think of the ‘accept it, decline it, use it’ strategy with every single offer.