The Purchase Price Negotiation
In England, Estate Agents are appointed to advise their clients about the price to market their property. This price (or valuation) is usually based on a number of factors:
- Recent sales or market trends in that location
- The property condition and an estimated cost of remedial works
- The potential the property may offer
- How popular the specific road might be
- The volume of square feet/meters of accommodation available
- The proximity to good transport and communication links
- The sellers’ own views on the price for their property
- How motivated the seller might be
Prices however, are often negotiable.Whilst a price may be agreed between the property owner and the prospective purchaser, this is not legally binding until written legal contracts have been exchanged by both parties.
This initial contract will not be Exchanged until detailed legal research about the property, the land upon which it is built, the area in which it is located, together with the prospective purchasers ability to purchase and the vendors right to sell are proven. The legal process prior to Exchange of Contracts can take anything from 3 days to three months, it is essential that the process is executed in the most cost and time effective manner possible.