When estate agents sell a property it is their duty to get as high a price for it as possible. This is known to, and accepted by, most buyers.
How then do the buyers know if the price they are being asked is fair? How do they ensure that they are not being taken for a ride?
Tony Clarke, MD of Rawson Properties, says that many homebuyers do far too little 'homework'.
'They let their emotions govern their reasoning,' he said, 'and rush into making offers for homes that appeal to them. It is absolutely essential in this situation to keep a cool head'
Clarke said that a drive around all the properties for sale in the area targeted and discussions with the agents handling them will give the buyer the basic information he needs.
'Buyers should carry out their own comparative market analysis, in the same way that a good agent will for his seller,' says Clarke.
Having decided that a property might suit him, the buyer, adds Clarke, should not be too enthusiastic about it in the sellers or agents presence and should make a point of inspecting the entire property, from the 'cellar to the dome', very thoroughly.
'There are almost always drawbacks and defects in all homes,' said Clarke, 'and careful inspection will reveal these: leaks, damp patches, faulty electrical wiring, broken light fittings and flooring and a hundred and one other problems will usually be found. If the would-be buyer lists these, he can put himself in a position to negotiate the price down to a realistic, market-related level '“ if only because the seller and agent will be impressed by the effort he has put into his inspection.
Once negotiations are under way, says Clarke, the buyer should ensure that his options are kept open: 'Do not make a once-off final offer, indicate that you are prepared to discuss matters, but also that, with the data at your disposal, you can justify your price'.
'In such negotiations it is usually wise to start with a price that is 10% to 15% lower than the asking price and to stipulate that this should stand for only 48 hours. If this is then not accepted the buyer who has kept his options open will be able to try again.
'There is no way of knowing how genuine competitive offers are '“ certain agents invent them '“ but the trick is not to be influenced by them. Continue to set out the reasons for your offer and do not be intimidated. Should your market-related price not be accepted by the seller, you can then choose whether to put in a revised offer '“ or walk away'
