Unlike an auction where all the bidding is done on the day, a private treaty sale can take time and it might be awhile before a price is agreed on between the buyer and seller.
Here are some tips that might help you on your journey:
Figure out what to offer
Figuring out what to initially offer can be tricky. Some people choose to make their best and final offer upfront, while others make a lower offer with the expectation that they will negotiate upwards from there. Nobody can tell you which method will work best for you (every situation is different), however if you offer too low to start with you risk missing out to another buyer with a higher offer, and not being a part of any future negotiations.
Move quickly on hot property
If the property you’re interested in is extremely popular, or it’s a strong selling market, then there is much less chance that a lower offer will be accepted. In these situations it’s best to put in your best offer and to do it as soon as you can.
Before you start making offers, it’s best to have a solid understanding of your financial limits. Don’t make a crazy offer only to later find out that you can’t get finance. If you don’t have funds organised you will also need to ensure that any offers you make are subject to finance.
Put it in writing
If you just mention prices in passing then you might not be taken as a serious buyer. Make your offer in writing to the real estate agent who will then take it to the vendor for consideration. If your offer is not accepted you might need to reconsider your initial offer. This is the point where there may be some back and forth before both parties can come to an agreement.
Keep terms simple
Price isn’t the only consideration when it comes to property negotiations. If your offer has a lot of conditions on it then it can be off-putting to the vendor. For example, a seller might not be comfortable selling conditional to the sale of the buyer’s property. It’s also worth asking if there are any terms that the seller would find favourable such as a long settlement or lease back. In some cases you might be able to negotiate a sale price down if it has terms in favour of the seller.