Negotiating An Offer
Houses are normally finally sold for an average of around 93% of the original asking price. This is an important point to consider when deciding what asking price to set for your property and when considering offers. Buyers will expect to negotiate and will put in offers below the asking the price as they want to feel they have got a good deal.
Be aware of the stamp duty thresholds when setting an asking price for your property. For a property priced just above a threshold it will be harder to obtain the asking price as buyers will want to knock the price down so they do not have to pay the stamp duty.
When selling your house try to not ever appear to be desperate to get a quick sale as it is an open invitation for very low offers. On the other hand you must let potential buyers know that you are serious about selling as they will not want to risk starting the costly legal proceedings if the sale is likely to fall through.
Buyers will not normally expect their first offer on a house to be accepted so it is common practice for the seller to turn this offer down and suggest a price somewhere in between their offer and the asking price.
When you receive an offer from a potential buyer you should always consider how proceedable they are and how desperately they want to buy your house. With 1 in 3 house sales falling through it is important to do all you can to minimise the risk of your sale falling through.
A lower offer from a buyer in a good position is better than a higher offer from a buyer who has yet to sell or is involved in a lengthy chain. A buyer in a good position would be one that has no house to sell, already has a mortgage agreement in principal and has a need to move due to relocation of their work for example. A buyer in a not so good position would be one that has yet to sell their house or is involved in a long chain.
Other points to consider in the negotiations include whether fixtures and fittings are included in the asking price. Sometimes a seller will offer to the pay stamp duty on a property. Certain types of buyers, for example property investors and traders, may offer to pay your legal fees for you.