Receiving an offer on your property can be exciting—but knowing how to negotiate effectively is what determines whether you get the best possible outcome. Here's how to approach it.
Key Principles
Before you receive an offer—or counter one—you need to be clear on two things:
Your minimum acceptable price
The lowest you'd genuinely accept—based on your mortgage balance, equity needed, and what you need to fund your onward purchase.
Your target price
What you're actually hoping to achieve—typically your asking price or close to it. This is your opening negotiating position.
Everything between these two figures is your negotiating range. Share neither with the buyer or their agent—but know them clearly yourself.
If you receive a low offer, don't go straight back to asking price—it signals you're not willing to negotiate at all and can cause buyers to walk away. Instead, counter somewhere between the offer and your asking price. Meeting in the middle is the most common route to a deal.
This is a tip for buyers, but equally important for sellers to understand: buyers have a hard limit set by their mortgage offer, savings, and total cost of moving. If a buyer can't physically go higher, a counter-offer above that ceiling just ends the conversation.
Price isn't the only negotiating lever. If the buyer wants a specific completion date, you might accept a slightly lower price in exchange for certainty and convenience. Included fixtures and fittings, or white goods, can also be part of the deal without affecting the headline price.
Property sales can get emotional—especially if the offer feels insulting. But an emotional response rarely helps. Sellers who respond professionally to low offers are far more likely to keep buyers engaged and move the negotiation forward.
Cash buyers or those already under offer have a significant advantage. Buyers should disclose this upfront—it often means a seller will accept a lower price in exchange for certainty. Sellers should ask for this information before deciding how hard to negotiate.
As a seller, it's useful to understand what a savvy buyer is assessing about your position before making an offer:
| Question the Buyer Asks | Why It Matters | How It Affects Their Offer |
|---|---|---|
| Is the house under offer? | Suggests seller interest is real; gives buyer confidence | May discourage speculative low offers |
| Is the buyer cash or mortgage? | Cash = no lender risk, often quicker | Cash buyers may negotiate harder but offer certainty |
| Stage of mortgage application? | AIP vs full offer = different risk levels | Early-stage buyers may later struggle to get funds |
| Have they appointed a conveyancer? | Shows they're organised and ready | Faster process; less risk of delay |
If you receive multiple offers—or expect to—a sealed-bid process can help you achieve the best price. Each interested buyer submits their highest offer in a sealed envelope by a set deadline. The seller then chooses the most attractive combination of price and buyer position.
📊 Sealed Bids: What the Research Shows
According to government research (2013–2015), only 2% of buyers and 3% of sellers used sealed bids in a typical year. Sealed bids work best when you have at least 2–3 serious competing buyers. With only one interested party, a sealed bid just removes your ability to negotiate openly. Ask your estate agent whether demand genuinely warrants this approach before using it.
Buyers can attempt to renegotiate the price after a survey reveals issues. This is a separate negotiation from the initial offer and is covered in detail in our guide to negotiating after an offer is accepted.
As a seller, you should know:
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