Asking price

20122013

There seems to be a lot of price reduction where I am looking to sale. Last week there was a similar property listed and agent said we can match their price, I was unsure as they have more open plan outside space, I have since noticed the condition property is not as desrcibed and now I feel I can match their asking price.  My agent said we can always reduce it in a few weeks, however, the  lowered price leads to more viewings (obviously)  

Is it better to price match , as if I start low, it may start a price match war and both will start reducing?

RHemmings

Just a note. Price reductions don't necessarily mean that prices are going down in your area. A lot of houses are listed at 'aspirational' prices and then are reduced. 

If you start low, you may get buyers competing to buy and a price war. Or you may not. 

In theory if you have a good EA they should be able to be realistic about what price you are likely to obtain. But, even if your EA is good, valuation is not an exact science. And, with EAs taking different strategies, you get a wide variation in recommended prices - as per your other thread. 

As a buyer, it doesn't look good to me if I see two properties, and the one that is more expensive doesn't look as good to me as the other. In my mind I would prioritise the 'better value' property. And, what looks 'better' to me may not to others. But, I would probably still look at both. 

If you are selling, then there will be a small pool of potential buyers for your home (mostly). You could be lucky or unlucky concerning what sort of people those are, their finances and eagerness to buy. 

20122013

Appreciate your view (very helpful) and I am going to send my proposal to the agent now !

20122013

Update, I have proposed a fixed fee incl VAT and an incentive of 1% of the fixed fee (incl VAT) if the property is sold at the asking price within 6 weeks.

Agent has proposed :

'A fixed fee plus 20% VAT would be payable and irrelevant to the actual selling price of the property. '

I want to see whether I have missed something as I think the agent offer, favors me?  I am thinking would the agent feel less motivated to sale?

Herzlos

7% incentive for the EA? That seems like a huge figure

20122013

Corrected my last post

RHemmings

What are the fixed fees? Is it the same fixed fee for the agent's offer, or are they different? It might be good to give the actual numbers. 

ReadingTim

What are you actually trying to negotiate here: the asking price you market the property at, or the price you will pay to the EA for selling it?  

If the former, then you're the client, and you can tell them to market it at whatever price you like.  Whether it will sell is another matter, but not for this response.  

If it's the latter, then they're not "your agent" as you're still negotiating the contract, and if you don't like their pricing structure, then try another firm - I assume you asked 3 round for an appraisal of the property and went with the one that gave the most competitive quote? 

20122013

The posts/ replies are helping me think a bit more of the Agent's offer.
I am trying to negotiate the Agent's fee for getting my property sold.  As it seems the Agent is not bothered with the incentive and they will get their fee when the property is sold regardless of what price I get  or have I misunderstood?  or is it better to get the fee set as a percentage to the sale of the property? so it will get sold at a higher pric (the reason why I am saying this is because the original valuaton is at the low end of the market so it will get sold but I will make a loss, and then it was increased and increased again due to new listings)

OFFERS:
I had offer the agent to consider
A fixed fee of 'X amount' incl VAT and if the property is sold at the full asking price within the said period then £200 incl VAT will be added to your fixed fee incl VAT.

The agent came back with:
A fixed fee of 'X amount' plus VAT  would be payable and irrelevant to the actual selling price of the property. 

BarelySentientAI

It would cost them more than £200 in time to make a bespoke contract just for you.  Not worth their effort.

20122013

I am wondering whether I have shot myself in the foot by asking them to remove the word 'minimum'  (as it had read  'minimum' fixed fee) and bettter to ask them to charge a percentage of selling fee? so i feel more incentive to sell at the market price.