The Sellers Guide to Selling by Negotiation

What does selling by negotiation mean?

Selling by negotiation allows you to list your property for sale with a fixed asking price and invite offers from purchaser who have inspected your property.
Marketing your home with an asking price attracts a targeted group of people who are able to purchase a home in that price range.

If you are planning on marketing your home with an asking price it’s vital that you price the home correctly. If the home is overpriced, you can alienate potential buyers. At Whangamata Real Estate we provide free market appraisals to help you determine the price. We can also show you a list of similar properties in your area and what they sold for to help you make a decision.

Types of offers

There are two types of offers:

Conditional - having one or more conditions to be met within a specified period (e.g. subject to a building inspection)Unconditional - having no conditions

All offers will be drawn up by the salesperson on the Real Estate Institute of New Zealand Sale and Purchase agreement and presented to you for your consideration.

If the offer is at an acceptable level, you will need to sign the contract, it will be dated, the customer notified, and the sale is concluded. If it is not at an acceptable level, the Sale and Purchase agreement may be altered and counter-signed by you, the salesperson will then take the offer back to the customer for their consideration. This may happen several times until the price and conditions are satisfactory to both parties and a sale is concluded. At this point, the Sale and Purchase Agreement is dated, and the agreements are forwarded to both the clients and the customers solicitors.

It is normal practice for the salesperson to give copies of the completed agreement to both the client and the customer so that all parties have documentation detailing the possession date and of what chattels go with the property.

The offer is not considered unconditional until your (the seller’s) solicitor confirms with us that it is unconditional.

Multi offer Situations

If more than one customer is interested in submitting an offer at once, a multi-offer situation can arise. Whangamata Real Estate have a process in place that ensures all buyers have a fair chance to submit their best offer for you to consider. You can then choose which (if any) customer you will continue your negotiation with. Your salesperson will give you a copy of our policy should this situation apply.

Deposits

The deposit must be paid immediately the agreement is unconditional and is usually payable to the real estate agents Trust Account or in accordance with whatever is stated on the contract. A deposit of 10% is usually required.
By law we are required to hold the deposit in our trust account for 10 working days after which time, we forward the deposit to your solicitor, less our commission.
The conclusion of the settlement is carried out between your solicitor and the sellers solicitor.

Once an agreement is unconditional, the deposit is not refundable.

Settlement dates

The process by which the settlement/possession date takes place is commonly conducted through lawyers and involves the payment of the purchase price (less any deposit already paid) in exchange for which the purchaser will be electronically registered as owner on the Certificate of Title to the property. This electronic registration will also ensure that all previous charges over the property are released.
Keys to the property are usually either handed over to the customer by the salesperson immediately following settlement of funds to your solicitor.

Normally, the settlement date and the possession date are the same.

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