Sunday, 24 October 2021

Talking Property with Katie Baldwin

NEWS and views from Henley’s estate agents and property experts. This week, KATIE BALDWIN of Savills

NEWS and views from Henley’s estate agents and property experts. This week, KATIE BALDWIN of Savills in Henley has some negotiating tips for buyers and sellers alike to ponder

CONGRATULATIONS, you’ve found a property that fits your search criteria and now you are entering the most exciting, albeit sometimes frustrating, part of the sales process — negotiation.

It is no secret that the property market at the moment is challenging.

The gap between the expectations of what vendors expect buyers to pay for their property and what buyers are actually prepared to pay seems to be at its widest point for many years.

At its most basic level, the process of home purchase, although very emotive, is a commercial transaction and one of the most expensive any individual is ever likely to make. Both sides want to feel like they have done well.

What buyers are prepared to pay will depend on how much finance they have (this has recently been curtailed through more stringent mortgage regulations) and what price comparable properties have sold for.

For owners this can be a bitter pill to swallow, but the reality is that just because you’ve spent £100,000 on a new kitchen, it doesn’t automatically translate to your property being worth £100,000 more.

Many people like to include “extra” items, such as white goods, sound systems, curtains and carpets, to entice a higher offer — but working this into the offer price is rarely a good idea.

This is because secondhand items only have a value if required by the buyer and attaching a value to them is incredibly subjective.

Secondhand items are only worth what someone is prepared to pay for them, they are not worth their replacement value or even as much as the original purchase price — difficult though this can seem to be.

Instead, it is better to offer these items by separate negotiation.

Sellers, especially in the current climate, should seriously consider all reasonable offers and think about their own motivation for moving and their timeframes before accepting or dismissing a prospective purchaser.

Other considerations to make the process go as smoothly as possible include having all paperwork ready and up front and to have already appointed a recommended solicitor.

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