As your biggest asset, of course you want to get the best price when it comes to selling your home. But even when the market is red hot for vendors, you still need to ensure you negotiate correctly in order to do well.

Call in the experts

There’s no doubt that the single most important tool for negotiating the sale of your home is your real estate agent. This is what they are experienced in doing, and they can guide you on all aspects of considering offers, setting auction reserves and understanding what the market is telling you about the price of your property.

Being the ‘middle person’ between owners and buyers is the true value of an agent, so make sure you use their expertise and guidance wisely.

Do you wait for the highest price?

Unless you are selling at auction (check out our blog on how to set the right reserve price), the property will be on the market open to potential buyers to make an offer. There are a few different ways that this can be structured (with a price range, asking for offers, or a direct asking price).

Again it is a good idea to ask your real estate agent for guidance on this, as there are pros and cons for each option, depending on a few key factors - including the current property marketplace, the urgency of the sale, and your individual home.    

How to compare offers

It is important to note that comparing offers is not like comparing ‘apples with apples’. And that just because someone has expressed an interest in buying your property, it doesn’t always mean it will actually go through. You need to look deeper into the information presented to you to see what is actually on the table. For example:

• The size of the deposit Obviously the bigger a deposit, the more invested the party is in purchasing the property. This means they are certainly serious, and are also financially stable enough to go through with the sale of the home.  

• Is it a cash sale, or is financing involved? Sometimes people are able to offer to pay cash in full (without having to go to a lender) and for vendors wanting a quick sale, this is obviously very appealing. But having this distinct advantage as a buyer means they may offer you less than what others do. Here you need to weigh up what is more important - a quicker sale, or a higher price.

• Do they require any inspections or valuations? Has the person who has presented the higher offer also noted that it is dependent on a building report or independent evaluation? This means you won’t be able to move forward with the final contract until these have been carried out - and the offer will also be conditional on the outcome of the inspection.

• Are there any special conditions? There are times when buyers will have other clauses included in their figure, and this could be anything from having to sell their own house first, to have a short or long settlement date (when they actually take over ownership and want to move in). Depending on your own individual circumstances, these are all things you will need to consider.

It is important to remember you don’t have to rush into accepting the first offer you receive - particularly if it isn’t quite right for you and your needs.

Read more: The top 6 qualities to look for in a real estate agent 

Negotiating an offer

So the offers have been presented to you, and you have one you are most interested in (taking into consideration all the above factors). Here is where you can look at a counter offer, in order to increase the sale price, or change some of the conditions to make them more suitable for your situation. This is a large transaction, and one you should never feel pressured to make.

Of course there is always a risk of pushing a potential buyer away with counter offers, but this is all part of the negotiating process and again - it is where a dedicated real estate agent will be able to guide you towards making the best decision for you and your property.

As a further note for vendors - you also need to be realistic about what you are asking from the market, as a lot of the time this is where the value of your property lies. If people are not willing to pay the price you want, then it may be that it is too high. As owners, we tend to place an inflated value on our homes because of an emotional attachment, but unfortunately this is simply not an accurate reflection of our property’s ‘worth’.

Ready to put your house on the market? Don't forget to download our guide below - it's free!