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Negotiating as a Seller

Negotiating Scenarios game

1

SELLING A PROPERTY: You are considering selling your home but your friends are advising you that you don’t need to use an estate agent because they can be very expensive and don’t necessarily add value to the negotiation of the sales price of the property. Do you?

  • A 4 Use the right agent anyway

    ANSWER COMMENTARY
    It may well be cheaper not to use an estate agent, but this is not the only consideration. Having expertise on your side can make quite a difference to the level of your bargaining power, so utilising the right agent is potentially a good thing to do, as they can deliver more value than they cost. So, answer (a) is the best here.

    Answer (b) means you won’t have the benefit of an agent’s expertise and answer (d) means you may not get the best out of that expertise.

    Answer (c) may be good, as you are using an intermediary which gives you another source of bargaining power – ‘referral power’ – but does this intermediary have as much expertise in negotiating property prices as the right kind of agent?
  • B 2 Do without an agent and negotiate the price yourself

    ANSWER COMMENTARY
    It may well be cheaper not to use an estate agent, but this is not the only consideration. Having expertise on your side can make quite a difference to the level of your bargaining power, so utilising the right agent is potentially a good thing to do, as they can deliver more value than they cost. So, answer (a) is the best here.

    Answer (b) means you won’t have the benefit of an agent’s expertise and answer (d) means you may not get the best out of that expertise.

    Answer (c) may be good, as you are using an intermediary which gives you another source of bargaining power – ‘referral power’ – but does this intermediary have as much expertise in negotiating property prices as the right kind of agent?
  • C 3 Use another intermediary such as a lawyer to negotiate on your behalf as this will be cheaper than estate agent fees

    ANSWER COMMENTARY
    It may well be cheaper not to use an estate agent, but this is not the only consideration. Having expertise on your side can make quite a difference to the level of your bargaining power, so utilising the right agent is potentially a good thing to do, as they can deliver more value than they cost. So, answer (a) is the best here.

    Answer (b) means you won’t have the benefit of an agent’s expertise and answer (d) means you may not get the best out of that expertise.

    Answer (c) may be good, as you are using an intermediary which gives you another source of bargaining power – ‘referral power’ – but does this intermediary have as much expertise in negotiating property prices as the right kind of agent?
  • D 2 Use an estate agent but insist on a lower rate of commission because you want to negotiate the price directly yourself

    ANSWER COMMENTARY
    It may well be cheaper not to use an estate agent, but this is not the only consideration. Having expertise on your side can make quite a difference to the level of your bargaining power, so utilising the right agent is potentially a good thing to do, as they can deliver more value than they cost. So, answer (a) is the best here.

    Answer (b) means you won’t have the benefit of an agent’s expertise and answer (d) means you may not get the best out of that expertise.

    Answer (c) may be good, as you are using an intermediary which gives you another source of bargaining power – ‘referral power’ – but does this intermediary have as much expertise in negotiating property prices as the right kind of agent?
It may well be cheaper not to use an estate agent, but this is not the only consideration. Having expertise on your side can make quite a difference to the level of your bargaining power, so utilising the right agent is potentially a good thing to do, as they can deliver more value than they cost. So, answer (a) is the best here.

Answer (b) means you won’t have the benefit of an agent’s expertise and answer (d) means you may not get the best out of that expertise.

Answer (c) may be good, as you are using an intermediary which gives you another source of bargaining power – ‘referral power’ – but does this intermediary have as much expertise in negotiating property prices as the right kind of agent?

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