The amount the property will be marketed for
This is decided by the seller in discussion with the agent, taking into account the seller’s views and the agent’s appraisal of the property’s value. The seller will also agree a marketing plan with the agent.
If more than one person makes an offer
Then each prospective buyer will be asked to make a signed written offer. They should have this checked by their lawyer. The agent will then present all offers to the seller who will weigh up which, if any, they want to accept. The seller may also choose to instruct the agent to negotiate further on conditions or price.
Selling by buyer enquiry over (BEO) or buyer budget over (BBO) or pricing guide
There are several different ways of selling a property by negotiation. One is to market it as buyer enquiry over (BEO) or buyer budget over (BBO) a certain amount (such as ‘BEO $350,000’) or by giving a pricing guide. These give an indication of the lowest price the seller hopes to achieve for the property. The seller will then negotiate with prospective buyers through the agent. Prospective buyers can still make an offer below the advertised guide prices
Selling by negotiation without a guide price
This is a marketing approach an agent may suggest when it is hard to estimate the price a property is likely to sell for. Prospective buyers make offers based on their perception of the market value of the property and the seller will negotiate with them on price, through the agent.