Selling a property involves more than just listing it and waiting for buyers—it requires skillful negotiation and decision-making to secure the best deal. Whether you’re selling a house, apartment, or commercial property, understanding how to evaluate offers, counter effectively, and close the deal successfully is crucial.
In this guide, we’ll walk you through the offer and negotiation process, helping you make informed decisions that align with your financial and personal goals.
1. Understanding the Offer Process
How Offers Work
When a potential buyer is interested in your property, they will submit an offer letter stating:
- The price they are willing to pay
- Their preferred payment terms (cash, mortgage, installment)
- Any conditions attached (e.g., repairs, property inspections)
- The proposed closing date
Not all offers are the same, and it’s important to evaluate each one carefully before making a decision.
Types of Offers You Might Receive
- Full-Price Offer – The buyer offers exactly what you are asking for.
- Below Asking Price Offer – The buyer wants a discount or is testing your flexibility.
- Above Asking Price Offer – Rare but possible in high-demand areas where multiple buyers compete.
- Conditional Offer – The buyer’s offer is dependent on certain conditions, such as loan approval or property repairs.
- All-Cash Offer – The buyer is paying in full without relying on mortgage financing, leading to a faster transaction.
Each offer type has pros and cons, and knowing how to respond will determine how successfully you close the sale.
2. Evaluating Offers: What to Consider
Not all high offers are the best, and not all low offers should be ignored. Here are key factors to consider:
A. Offer Price
- Does the offer match your property valuation?
- Is it realistic and competitive compared to similar properties in your area?
- If it’s lower than expected, is there room for negotiation?
B. Buyer’s Financial Strength
- Is the buyer pre-approved for a mortgage?
- Do they have proof of funds for cash offers?
- Are they relying on third-party financing that could delay closing?
C. Payment Terms
- Cash offers are preferable because they close quickly and eliminate bank-related delays.
- Mortgage-financed buyers require bank approval, which can take weeks.
- Installment plans may offer flexibility but come with risks if the buyer defaults.
D. Contingencies & Conditions
Some buyers attach conditions to their offers, such as:
- Home Inspection Contingency – The buyer wants to check the house before finalizing.
- Repairs or Renovations – The buyer requests fixes before closing.
- Financing Contingency – The deal depends on loan approval.
If an offer has too many conditions, it could lead to delays or cancellations.
E. Closing Timeline
- A buyer who can close quickly is preferable, especially if you need urgent funds.
- Some buyers may request an extended closing period, which might not be ideal if you need to sell fast.
By considering all these factors, you can determine whether to accept, reject, or counter-offer.
3. Effective Negotiation Strategies
Negotiation is a two-way discussion where both parties try to get the best deal. As a seller, you want the highest possible price with the least hassle, while the buyer wants a fair deal within their budget.
Here’s how to negotiate effectively:
A. Start with a Strong Asking Price
- Set a realistic price based on market research and valuation.
- A slightly higher price allows room for negotiation while ensuring you don’t undersell.
B. Don’t Accept the First Offer Too Quickly
- Even if an offer looks good, take time to evaluate it.
- Buyers expect negotiation, so countering their offer is normal.
C. Counter-Offer Strategically
If a buyer offers a lower price:
- Counter at a fair middle ground instead of rejecting outright.
- Highlight the property’s value (e.g., location, amenities) to justify your price.
- If necessary, offer minor incentives (e.g., covering legal fees) instead of reducing the price significantly.
D. Use Multiple Offers as Leverage
If you receive several offers, inform the buyers to submit their best and final proposals. This can create a competitive situation where buyers improve their terms.
E. Stay Professional and Emotionally Detached
- Keep negotiations calm and professional.
- Avoid overreacting if a buyer submits a low offer—it’s just part of the process.
- Focus on facts and figures, not emotions.
F. Know When to Walk Away
- If an offer is too low or has unreasonable conditions, it’s okay to reject it.
- If a buyer is too difficult to negotiate with, they may cause problems later in the transaction.
4. Sealing the Deal: Closing the Sale
Once you and the buyer agree on terms, you need to finalize the transaction legally and efficiently.
A. Draft a Sales Agreement
- This legally binding document outlines the final price, terms, payment schedule, and closing date.
- Ensure the contract is reviewed by a real estate lawyer to protect your interests.
B. Buyer’s Payment Process
- If the buyer is paying cash, ensure full payment is received before transferring ownership.
- For mortgage buyers, the bank will typically handle payments directly to you.
C. Property Handover
- Ensure all utility bills and taxes are cleared before transferring ownership.
- Provide necessary documents and keys to the buyer.
D. Register the Property Transfer
- The final step is to register the new ownership with the relevant land authorities to avoid future disputes.
5. Common Mistakes to Avoid in Negotiations
Mistake 1: Being Too Rigid with Pricing
Overpricing or refusing to negotiate can scare away potential buyers. Always be flexible but firm on your property’s worth.
Mistake 2: Ignoring Buyer Red Flags
A buyer with unstable finances or too many conditions may cause delays. Always verify financial capability before proceeding.
Mistake 3: Rushing the Process
Accepting the first offer without evaluating others might lead to lost opportunities. Take time to review all offers before deciding.
Mistake 4: Not Getting Legal Assistance
Always involve a lawyer or real estate expert to avoid contract loopholes that could put your property at risk.
Final Thoughts
Navigating offers and negotiations in Nigeria’s property market requires patience, strategy, and knowledge of market conditions. By understanding offers, negotiating effectively, and handling transactions professionally, you can maximize the value of your property and close a successful sale.
At Amana Estates, we assist sellers through every step of the negotiation process, ensuring they get the best possible deal with minimal stress.
Ready to sell your property? Contact us today!