Inspiration

How to get an Asking Price Offer

RAT 32 (Rawlings Agency Tip)

One of the reasons why we have a tradition of sales below the asking price is that agents often encourage buyers to make low offers, presumably on the assumption that the buyer won’t pay the asking price. This is clearly the point of least resistance for the agent. How many more sales could be agreed if we secured more asking price offers?! When it comes to prompting buyers to make an offer I prefer to encourage people to make a full asking price offer from the start, using some of the following phrases:

•“We only take on property that is priced to sell. That’s why we don’t carry as much stock as some other agents. As you have now seen several properties on the market I'm sure you'll agree this is correctly valued at the asking price.”

•“We have advised the seller to quote the right price and stick to it, so we are not inviting offers below the asking price at this stage.”

•"As this property is new on the market, it is unlikely that the seller will accept anything below the asking price.”

•"In view of the other properties you have seen, how much do you think this house is worth in relation to those?"

•“I’m keen that the seller should commit to selling the house to you, so may I suggest you demonstrate your own commitment with an asking price offer?”

•“In this market, sellers know that the market has probably bottomed and they may regret accepting a low offer, especially as there are other buyers who are expressing interest.”
Of course, by suggesting a full asking price offer, it does not mean that the buyer will still not make a lower offer – that’s fine. In fact, the buyer is more likely to feel they have secured a bargain if their below-asking-price offer is accepted against your asking price suggestion. But what does it say to hear “It’s on at £275,000 but the seller will take an offer”! (ie it’s too expensive).

Remember- a buyer does not make a low offer for the sake of getting a bargain! They make an offer because they want to buy the property. Generally speaking, a buyer will only offer on the best property they have seen in their price range. So it follows that once you know they want to live there, and they can afford it, all you have to do is facilitate an asking price offer, possibly by using one or more of the above phrases.

However, if you have tried to secure an asking price offer, but failed, then, and only then, suggest a lower offer. It will probably become the start of a negotiation and even if this goes nowhere, it’s really useful to be able to tell other buyers that you have already had an offer from someone else!

Finally, once an offer is made, do make sure that you re-state it to the buyer, using the words “So your opening offer is £260,000, is that right?” By allowing you to use the phrase “opening offer” the buyers is effectively agreeing that they regard this as a starting bid and that they expect to rise.

How many offers will you prompt today?

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© Richard Rawlings 2010
Richard Rawlings is the founding director of Estate Agency Insight, which specialises in helping estate agencies harness opportunity through innovative method, marketing, publicity, and training. He can be contacted at or on 0845 838 1354.

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