Negotiation and Accepting Offers

When looking at offers you've received and deciding on which is most appropriate for you, it's important not to rush the decision. Always remember:

• Don’t forget that most initial offers will typically be 5 to 10 percent below your asking price. Indeed, most buyers will assume you’ve built a bit of ‘room to manoeuvre’ into your asking price.

• Don’t allow yourself to be pressured into accepting an offer straight away – it’s quite acceptable to take a day or two to respond. Use that time to make sure that your buyer really is in a position to buy your home. Are they in a chain? Have they put in any offers on other properties? Have they sold their home or do they have an offer on it? Do they have a mortgage offer in principle from their lender?

• Don’t make too many concessions on price, or on what is included in the price, without getting something back in return.

• Remember, as the seller you are in the position of power – if someone wants your home it’s your job to make sure you get a fair deal for it.

• Most successful negotiations involve a little bit of give and take on both sides so that you eventually meet somewhere in the middle.

Gazundering

Gazundering happens when your buyer tries to pressure you into accepting a lower offer at the last minute, just before contracts are about to be exchanged by threatening to pull out unless you accept a lower price.

There are some things you can do to avoid falling foul of this underhand buying tactic:

Don’t be too forthcoming about your future plans, and ensure that your estate agents knows to keep certain facts confidential – for example, if you’re emigrating and are booked onto a particular flight at a particular time, keep those details quiet. An unscrupulous buyer could use this information to pressurise you into accepting a lower offer at the last moment.

Make sure you know your property and its value inside out – an overpriced property is an invitation to gazunder. This puts you in a much better position when any renegotiation is mentioned. Be prepared to get quotes for any work that may need doing on your home so that you know exactly what kind of reduction you may be asked to agree to.
If your property has been on the market for a long time this can leave you open to gazundering - it might be worth considering selling it at auction where the contract price is sealed at the fall of the hammer.

Gazumping

In some cases, a seller can decide to go back on an agreement with the buyer by accepting a higher offer from someone else. In home buying terms, you have been ‘gazumped’.

This is perfectly legal in England, Wales, and Northern Ireland, even after your offer has been accepted. This is because the estate agent has a duty to pass on any other offers they receive onto the seller, until they are told not to. On the contrary, an offer in Scotland is considered legally binding from the moment of acceptance.