Negotiation Process

  • Only the Seller & Buyer are parties to the contract and make decisions.
  • Consider today’s market.
  • Offers are generally a starting point for negotiations; the goal is for the two parties to agree on price, terms & conditions.
  • All contracts must be in writing, all changes initialled by all parties.
  • Negotiations should not be taken personally.
  • There is a “right of rescission” – any offer may be verbally revoked BEFORE written acceptance.
  • Presentation of the offer – all discussion should be in private between the sellers and their listing agent, after presentation of the offer.
  • Buyers or Sellers should not discuss the offer with other parties until the deal is firm.
  • There are 3 choices for response to an offer:  
    • acceptance
    • rejection
    • counter offer
  • The “ceiling price” is as high as the Buyer will go; the “floor price” is as low as the Seller is willing to go.
  • Price is not the only important point; consider completion and possession dates, as well as other terms & conditions.
  • The property will continue to be actively marketed until all subjects are removed.
  • I believe in negotiating strong, enforceable contracts (i.e. it is better to challenge “shaky” contracts early, rather than waiting until completion and hoping nothing goes wrong … after making subsequent decisions and commitments).