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Limit the risk of re-negotiation by doing this…

By Thomas Russell

When accepting an offer on your property, it’s vital to understand the types and implications of offers. Accepting an offer can be stressful, especially if the buyer renegotiates after due diligence. This underscores the importance of distinguishing between binding and non-binding offers.

Fair Trading laws state that offers can be written or verbal, and agents must present all offers, including low or non-binding ones. A common mistake is treating a non-binding offer as legitimate. The most secure offer is an unconditional signed contract with a 66W certificate and the agreed deposit, which banks will often lend against.

Here are key strategies to protect yourself during the selling process and to stop renegotiation:

  1. Full Disclosure of Faults:
    • Disclose any property faults upfront. Buyers informed of issues beforehand make better offers. Address issues before listing or disclose them to potential buyers.
  2. Negotiating Non-Binding Offers:
    • If a non-binding offer is acceptable, insist it be put in a signed contract. This ensures commitment and prevents misunderstandings.
  3. Beware of Valuations:
    • In today’s fluctuating interest rate environment, offers contingent on valuations are risky. Prefer offers that are less dependent on external financial evaluations.
  4. Stay on the Market Until Sale is Complete:
    • Keep marketing your property until the sale is finalized. Non-binding offers can fall through, leaving you without backup options.
  5. Only Consider Unconditional Offers When Multiple Buyers are Interested:
    • Ensure all offers from multiple interested buyers are unconditional by the deadline. This avoids dismissing serious bidders and having non-binding offers fall through.

By following these guidelines, sellers can minimize the risk of renegotiations and ensure a smoother selling process.

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