Negotiating Offers to Purchase on Your Home

Effective Negotiating When Selling Your Home

No matter the reason for selling your home, it is often a stressful time. There are many tips about preparing your home for sale, valuations and getting the best price that you can for your property. But what happens once you are presented with an offer from a prospective buyer?

Seeff Properties Botswana covers some of the basics of what to do when you receive and offer from a buyer and how to successfully negotiate the offer if it is below the listed price.

Effective negotiation on an Offer to Purchase is a balance of preparation, strategy and communication skills. As always, Seeff strongly advises that you work with a reputable and registered agent to ensure that you have a partner to walk through the process with you and offer advice where needed. Below are some key tips from Seeff to help you negotiate successfully.

PREPARATION

1. Market Knowledge:
   • Research the real estate market to understand current trends, recent sale prices of comparable homes, and the average time homes spend on the market. Have a look, especially, at the homes in your area.
   • A good real estate agent should be able to help you with market comparatives to see what type of homes are selling and at what prices.
2. Set a Realistic Price:
   • Price your home competitively based on your valuation and research. Overpricing can deter buyers, while under-pricing may lead to a quicker sale but for less than its potential value.
3. Prepare Your Home:
   • Make any necessary repairs, clean thoroughly, and consider staging to make your home more attractive to potential buyers. Read our article on "Preparing your Home for Sale" for more information on this.

NEGOTIATION

1. Respond Promptly:
   • Timely responses to offers show that you are serious about selling and respect the buyer's interest. Kim Bekker, Seeff Properties Botswana Licensee, says "it is always advisable to ensure a prompt response, we would advise within 48 hours of receiving the offer".
2. Be Flexible but Firm:
   • Be willing to negotiate but set clear boundaries. Know your bottom line and be prepared to walk away if the offer doesn't meet your minimum requirements. Letso Palai, Residential and Commercial Agent at Seeff advises sellers to "let your agent know what your minimum is. This will help the agent when showing the property to prospective buyers".
3. Highlight Home's Strengths:
   • Emphasise the unique features and recent upgrades of your home. This can justify your asking price and make your home more appealing. Your listing agent will work through this with you and factor these aspects in to the marketing efforts of the home.
4. Consider All Offers:
   • Don't dismiss lower offers outright. Counteroffers can lead to a satisfactory agreement. Evaluate each offer based on its overall value, including contingencies and the buyer's financial position.

STRATEGIES

1. Counteroffers:
   • If the initial offer is lower than expected, provide a counteroffer that is closer to your asking price but still reasonable. Experienced Residential Agent, Palma Mokibe, has handled many residential sales and assisted seller with managing the counteroffer process. "Many sellers don't realise that they can make a counteroffer on an Offer to Purchase if they are not quite happy with it. Many times, counteroffers do get accepted, it is a natural negotiating process", she says.
2. Concessions:
   • Be prepared to make concessions. Some buyers may request that certain items of furniture or other fixtures are included in the sale price.
   • Read up on our article "Fixtures and Fittings. What stays and what goes when you sell your property?" for more about this.
3. Get the Offer in Writing

• It is always advisable to get the Offer in writing.   People think more seriously about their offer if they commit it to writing. 
• Find out the conditions ie. Cash, partially cash, financed and how it will be financed.  Will a deposit be paid and if so, would it be refundable or non-refundable if the purchase couldn't raise the finance.  Is the offer subject to sale of their own house? Establish timelines for meeting any conditions. Is the Offer subject to a valuation? If so, what happens if the valuation doesn't come in at the Offer price.
• It is important to remember that BURS clearance is required.

4. Multiple Offers:
   • If you receive multiple offers, use this to your advantage. Liaise with your agent to assist you with looking through the offers and see which offer is most viable and motivated for your circumstances. Letso Palai suggests sellers to request further information from prospective buyers to motivate their offers.  

COMMUNICATION

1. Stay Professional:
   • Keep emotions out of the negotiation. Stay calm, and respectful, even if negotiations become challenging.
2. Work with a Real Estate Agent:
   • It is always advisable to work with an experienced and registered real estate agent. They can handle negotiations and provide valuable insights and assist you along every step of the process. "Too often deals turn sour and this is because sellers and buyers are trying to manage the sale process themselves. Qualified agents are there to assist both parties to manage the process and finalise a favourable outcome for both parties" says Kim Bekker.

FINALISING THE DEAL

1. Review All Terms:
   • Ensure you understand all terms of the offer, including contingencies, timelines, and financing details. Ensure that everything is in writing an no agreements have been made verbally.
   • Reputable agents use legally binding Sale Agreements that will ensure that all aspects of the sale are captured.
2. Be Prepared for Closing:
   • Have all necessary documents and information ready for the closing process to ensure a smooth and timely transaction. Your agent will set these requirements out from the day the property is listed on the market. This will allow you time to prepare yourself to ensure that you have documents such as Title Deeds at hand.

By following these steps and staying informed and prepared, you can effectively negotiate the sale of your house and achieve a favourable outcome. Call any of the Agents at Seeff Properties Botswana for experienced and helpful advice on selling your property.