The negotiation process
The type of market you are operating in will have a significant impact on how you will negotiate as a buyer. It is not necessary for you to know the vendor’s bottom line. It is the maximum other buyers will pay that has the greatest impact on your negotiations. And the figure you are prepared to pay. The main negotiation rule you need to learn as a buyer is ‘there are no rules’.
An offer you make does not become a legally binding contract until the vendor signs the offer and all conditions to the Contract and Section 32 have been fulfilled. Remember it is the vendor who makes the final decision. It is important to understand a vendor may decide to accept another offer without giving other interested buyers a chance to increase their original offer. Where the market is strong, it is best to make your biggest or best offer to secure the property you want. Subject to proper legal and financial advice, an unconditional offer to purchase, accompanied by a strong deposit cheque, is the most persuasive form of an offer.
It is vital to ensure that you are offering not only the money but also the right conditions that are attractive to a seller. This could include a settlement or possession date in line with the vendors next move.