BVI Sotheby's International Realty
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BVI HomeSense – Negotiating an offer
Photography by Rainbow Visions BVI
In the BVI HomeSense column, we address concerns that apply to buying and selling real estate and to property ownership. This month, we will review negotiating an offer and the questions that an individual should ask in the process.
During the purchase and sale of a property, it is crucial to know how to negotiate an offer from the position of both the buyer and the seller. As a buyer, how do you feel about the price of the property? Does it appear too high, or seem very low? Question the reason for the disparity. How long has the property been on the market? Does the property require a lot of work to raise it to your standards? In this case, it may be necessary to bring a contractor in to provide an estimate.
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Further questions to contemplate: Are there multiple offers in on the property? If so, know what works for you. If you feel the property is worth more than the asking price, perhaps it’s suitable to make a higher offer – if not, it may prudent to leave negotiations altogether.
How is the real estate market in general? Are things moving quickly or is the market sluggish? All of this is important to consider in making an offer.
If the property has been on the market for a while, check to see if the price has been lowered over time. If so, this arguably indicates that the owners are anxious to sell and it may be practical to make a lower offer. The owners can always counter the offer so that you can see where you stand.
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A very astute real estate methodology is simply, “Let’s meet in the middle and you’ve got a deal!” after both buyer and seller have presented their offers. This concept works well and places finality to the negotiating process.
As a seller, it is important to price your property according to the present real estate market. Asking too much—especially during a slow market—could scare potential buyers and the longer the property is on the market, the more negotiable the price becomes. Therefore, it is wise to price accordingly, especially if interested in a quick sale. The alternative option to lower the price could attract several offers.
When an offer does come in and it is much lower than the asking price, do not be deterred – the potential buyer may just be investigating the situation and your response. Come back to the table with an offer close to what you would accept as your bottom line and see what happens; it may be surprising how much the potential buyer may raise the offer.
Consequently, the decision on what to pay for a property or at what price to sell a property is subjective. The focal concept is it has to work for you. Nevertheless, it is always best to come from an informed position with a thorough consideration of the entire scenario in order to make the wisest decision.
Addressing some of the issues and questions in the above paragraphs should be helpful in the choices on negotiating a property price in the British Virgin Islands. We look forward to your input on this column and hope to address your interests. Contact us on +1284 494 7788 or email [email protected]
