Offer on Property

SmashedAvacado

It is of course physiological - and this is in part due to the English system where we make an offer and then it is only binding some time later (sometimes months later) when we exchange contracts. In the meantime there is a lot of time for self doubt. This self doubt is manifested broadly as either:
Did i pay to much ?
Did i sell for too little?

(there are of course lots of other doubts as a buyer like - do i really like that kicthen - but those are not the issue here).

Part of the negotiation process is to be sure that you feel like you didn't pay too much or sell for too little. So when offering, you should really offer less than you think they will accept on the basis that in making subsequent offers you won't end up in the situation where you paid more than the seller was prepared to sell for. and if they accept your first offer, you will be filled with the self doubt that you might have got it for less.

Similarly when selling, you know the buyers will offer lower than they are prepared to pay, and as such you need to reject the first offer because if you accept it, you will be left thinking - they might have paid more.

The tension created in this process of offers being rejected and then accepted leaves both parties feeling like they got the best deal available and leaves them comfortable in the meantime and removes some of the doubt whilst the legal process catches us with them.