Beginning The Negotiations
The Art of the Deal
Having made an offer for the property you want to buy, the negotiations begin. The auctioneer will probably get back to you telling you of a larger offer from another buyer. In a sellers' market, as exists at the time of writing, it is common for a property to exceed the guide price as set by the agent. There are two unavoidable problems with the negotiation process. It is both time consuming and adversarial. If it goes on too long everybody gets short tempered.
Every agent has had at least one sale fall through over some trivial issue which went on to-ing and fro-ing between the parties, to the point of exhaustion, neither side willing to compromise. Don't be afraid to ask the reason if your offer isn't accepted. The situation might not be irredeemable. Unfortunately you are not yet out of the wood even if your offer is accepted.
A nasty little thing called 'gazumping' can stymie you now. This is a practice whereby the seller accepts a higher offer even though he or she has already accepted yours. Unfortunately it is quite legal as it is usually only when contracts have been signed by both parties that the agreement can be relied upon. (Gazumping should not be confused with 'gazundering' (where do they get these words?) which involves the purchaser trying to renegotiate a lower price than that already agreed after he has seen off the opposition.) sible to measure, but invaluable. Earn it and it will act as a lubricant the next time you wish to do business with the same people. Lose it at your peril.
From Making Property Work by Maureen Moran
