Making an offer

Making an offer

Throughout the negotiation process you should ensure complete transparency, be as clear as possible with any information provided in order to avoid misunderstandings that can have a negative impact.

This should begin with your offer letter which should outline several key criteria:

The offered price
Duration of the offer with a time limit
Proposed payment terms
Time for completion
What is to be included in the sale and whether it is subject to some contingency e.g. is the purchase subject to some repairs being carried out or to the approval of your mortgage application, or the inclusion of some furniture, etc.
An often neglected point, that all machinery equipment and installations should be in working order

When making an offer its best to adhere to some basic guidelines.

Research the true current market value of the property.

Make a reasonable offer. It's important to know how much the property is worth and not just what you want to pay.

It is likely that the seller will not respond if the offer is too low as he may not take you seriously and will be reluctant to give a counteroffer.

If possible, find out if the seller has turned down other offers.
Only ever give a rock bottom bid if you are aware that the seller is open to them.
Good psychology dictates that you should leave room to improve an initial offer. However, if you believe your offer is realistic and perhaps have a second choice in mind, it can be a wise strategy to let the seller know that if he doesn't accept your offer, you will be offering on another property before considering any counteroffer from him.

If the seller is present during your visits to the property avoid giving your personal opinion about the property

Try to get all your negotiating points together at one time rather than negotiate piecemeal: this saves time and often, unpleasant surprises.

If furniture or fixtures are included as part of the sale, then its best to propose your offer “as seen” less personal items in order to avoid discussions over particular items. An inventory will form part of the private purchase contract. Permanent attachments are generally included but make sure that they are part of the sale.

Ensure via your lawyer who will pay the municipal tax of “plusvalia”. Although by law it is a tax paid by the seller, it is sometimes the case that the buyer pays it.

 

Next Article - Buying Process

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