Negotiating the price with a real estate private sale

Sell your property privately through Privatepoint the private real estate sale, for sale by owner ( FSBO ), DIY sales private house sales website.

It can be tricky negotiating the private sale of a property as a for sale by owner. This process usually begins with verbal offers but we highly recommend that when conducting a real estate private sale as a for sale by owner you encourage potential buyers to make all offers in writing. When a price and conditions are finally agreed on by both you and the purchaser, the offer must be made in writing and any amendments need to be made to the Contract of Sale.

Offers to purchase a property whether through a private real estate sale as a for sale by owner or through a real estate agent can be conditional or unconditional. A conditional offer is one that is subject to conditions that need to be met in order for the sale of the property to be finalised. If these conditions are not met within the pre-arranged time, then the offer is void and the private real estate sale will fall down. Both buyers and the for sale by owner may have specific conditions they would like to impose on the sale.

Buyer conditions may include things like:
• A building/inspection report which needs to be complete and match the buyer’s expectations.
• The buyer may want to move in immediately.
• The sale may be conditional on the buyer selling their property.
• The for sale by owner may be required to fix a default in the property.

For sale by owner conditions may include things like:
• A specific amount of money as a deposit from the buyer.
• An early settlement date.
• The option to lease the property for a period of time.
• The desire to maintain ownership of certain things attached to the property.

In most cases, an interested buyer will offer a price and wait for a response from the for sale by owner. The first offer is usually lower than the maximum price which the potential buyer is willing to pay. The for sale by owner selling their property privately can respond either by accepting the first offer or rejecting the offer and making a counter offer. If the first offer is accepted, then there is no need for further negotiation. If the offer is rejected, the for sale by owner will go back to the potential buyer with a counter offer or will see if they are prepared to make another offer and/or alter or withdraw conditions. Through a process of negotiation, the for sale by owner will eventually reach a mutually acceptable agreement to sell their property privately with a buyer.

Any for sale by owner conducting a private real estate sale should consider the following things in relation to offers and property negotiation:
• Negotiating Offers – The for sale by owner should ensure to do this as often as possible in writing. This documentation will be valuable if a dispute arises.
• Terms of Sales – The for sale by owner should not be afraid to trade terms of the Agreement for a greater sale price.
• Accepting Offers – The for sale by owner should accept an offer sooner rather than later. This will reduce the chance of a buyer changing their mind about the offer.
• Amendments to the Contract of Sale – Any amendments require the signature of both parties to be legally enforceable.

Often potential buyers will make low offers as they feel they can intimidate a for sale by owner conducting a private real estate sale. If you are a for sale by owner selling your property privately then all you need to do is decline the offer and stand firm on the money you are asking for. Remember, buyers do not know how many other potential buyers are interested in the property resulting in serious buyers having to make serious offers.