Negotiating the sale of your property

In a climate in which property sellers are increasingly in competition, buyers are more likely to make an offer below the asking price.  Whichever side of the equation you are on, buyer or seller, you will now be in a position of negotiation.

Hopefully, you have decided to use a reputable agent to act as your intermediary.  If the Estate Agent conducts the negotiations you are leaving it to a professional negotiator. At the end of the day, it is in the agent's interest to make sure the sale and purchase is secured.  The agent is often in the position of pushing the vendor to lower the price and the buyer to raise the offer, until a point where the figures match.  The initial offer is usually 5 to 10 percent below the asking price.  Where it ends up obviously varies.

One thing to remember if you are the seller: You can decide who to sell to or not. There is no need to accept or reject an offer straight away and you can take a day or two to think things over and then let the buyer know.  However, you should consider that if you delay too long, the buyer may go 'cold' or find another property to purchase.

Your own negotiating position is influenced mainly by the number of offers you have received or think that you are likely to receive. It all boils down to the simple interplay between supply and demand. The more potential buyers, the more likely that you can play them off against each other or even trigger a bidding war. Your negotiating position depends on:

•  Level of interest. The level of interest is the single most important factor influencing your position. This is why we recommend to sell in autumn, winter or spring, when demand is usually highest. But if you have a good property, there will be many potential buyers irrespective of the season. 
  
•  Strength of the market. When interest rates are low and the neighbourhood you live in is becoming more expensive due to recent developments, you will be able to negotiate a higher price. To get an overview of the condition of the property market in your area, check out the prices of properties which can be easily done with the Tenerife Property Shop 'Sale Price Index' on www.tenerifepropertyshop.com
  
• Time pressure. If you need to sell your property quickly, because you need the proceeds to buy a new house or for whatever other reason, your position is obviously weakened. In this case, considerations such as the type of purchaser (i.e. him not being part of a chain) are more important than the amount of money he offers.   You should price as low as you can, in order to attract as many viewings as possible.
  
• State of your property. If your property is in a bad condition, interest will obviously be lower. It is not advisable to wait for too long, since the longer the property is on the market, the lower the price you will get for it. Therefore you will have to be a bit more flexible when considering offers.

Be open with your agent.  Make sure you keep all lines of communication open and discuss every move with him ' at the end of the day, it is your house we are talking about. A negotiation involves two parties: If the buyer and the seller eventually meet in the middle, it should be because both have budged a bit. A satisfactory negotiation is always a compromise on both sides.