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Your flat has been listed for three weeks at ₹1.25 crore. Two buyers have shown real interest. One offers ₹1.10 crore and says it is 'final'. The other offers ₹1.16 crore but needs to sell their own flat first. A third person calls asking if you would take ₹95 lakh 'for a quick deal'. Your phone keeps buzzing and you are not sure whether to hold firm, counter or accept.
Negotiation is where many sellers either leave money on the table or lose a good buyer by pushing too hard. You do not need to be a tough negotiator. You need to read each offer properly, know your numbers and respond calmly.
Before the first offer: know your three numbers
- Asking price: what you listed at, ideally based on recent registered sales nearby with some room to negotiate.
- Target price: what you realistically expect to close at, usually a few per cent below asking.
- Walk-away price: the lowest you will accept, after counting your loan balance, selling costs, tax and what you need for your next home.
Write these down and do not share the walk-away number with anyone, including friends who might talk to buyers.
How to read a buyer's offer
An offer is more than a price. Look at:
- Funding: is the buyer paying from savings, a home loan, or the sale of another property? A buyer with a loan sanction letter is far more certain than one who has not yet applied.
- Loan gap: RBI rules cap home loans at 90% of the property value for loans up to ₹30 lakh, 80% for loans above ₹30 lakh and up to ₹75 lakh, and 75% above ₹75 lakh. Lenders also use their own valuation. If the bank values your flat lower than the agreed price, the buyer has to bring more money. Ask how much the buyer is putting in.
- Token and advance: how much and how soon. A meaningful advance shows commitment.
- Timeline: when they want to sign the agreement and register.
- Conditions: vacant possession, repairs, fittings that must stay, the sale of another home, or a family member's approval.
Comparing two offers
Take the two buyers from the opening example:
- Buyer A: ₹1.10 crore, loan sanction in hand, ₹12 lakh advance on signing, registration within 45 days.
- Buyer B: ₹1.16 crore, needs to sell their own flat first, no fixed timeline.
Buyer B's offer is ₹6 lakh higher, but it could take months or fall through. If your EMI, maintenance and property tax on the flat run to ₹70,000 a month, a four-month delay costs ₹2.8 lakh, and you may still end up back at square one. Buyer A, with a counter-offer, may be the stronger deal.
Making a counter-offer
- Respond to every serious offer, even a low one, politely and in writing.
- Counter with a specific number, not 'a bit more'. Round numbers invite round cuts. ₹1,21,50,000 suggests you have worked it out.
- Move in smaller steps each round. A first move of ₹4 lakh, then ₹2 lakh, then ₹50,000 signals you are near your limit.
- Give a reason: recent sales in your building, a new kitchen, a high floor, ready documents.
- Set a short deadline, such as 48 hours, so the negotiation does not drift.
- Trade, do not just cut: if you lower the price, ask for something back, such as a larger advance or a faster registration date.
Worked example with Buyer A: you counter at ₹1.21 crore, pointing to two registered sales in the society at around ₹1.2 crore. Buyer A comes back at ₹1.14 crore. You counter at ₹1.18 crore if they pay a ₹15 lakh advance and register within 40 days. They agree at ₹1.17 crore. You have moved ₹8 lakh from asking; they have moved ₹7 lakh. Both sides feel they negotiated, and you have a certain, quick sale.
When you have more than one offer
Two interested buyers put you in a strong position, but only if you handle it honestly. Tell each buyer that you have another offer, without sharing the other buyer's number or name, and ask both for their best terms by a fixed time. Then compare the full package: price, funding, advance, timeline and conditions. Do not invent a rival offer to push a single buyer. Buyers often check, and if they catch you out, they tend to walk away or harden their stance.
Handling lowball offers
A lowball is an offer far below a fair price, often 15% to 25% under asking. Do not take it personally. Some buyers try it on every property.
- Reply calmly with your price and the evidence behind it: recent registered sales nearby.
- Make a small counter only if the buyer seems genuine, for example if they have funding ready.
- If they will not move closer, thank them and keep showing the home.
- If you get several lowball offers, ask yourself whether your asking price is too high. The market may be telling you something.
Price versus guidance value: don't agree to the wrong number
Some buyers suggest registering at a lower figure and paying the rest in cash. Say no. Stamp duty is charged on the higher of the declared price and the guidance value. Under the rule that was the old Section 50C, if the guidance value is more than 110% of your declared price, your capital gains are worked out on the guidance value. Taking ₹20,000 or more in cash towards a property sale also breaks the cash rules (the old Section 269SS), with a penalty equal to the amount. Keep the whole price on paper and paid through banks.
Typical timelines once you agree
Timelines vary by buyer, lender and city, but a common pattern for a resale with a home loan is:
- Day 0: price agreed, token paid with a short written receipt.
- Within 1 to 3 weeks: the buyer's lawyer checks your title, the lender does its valuation and legal check, and the agreement for sale is signed with the main advance.
- Within 30 to 90 days: the loan is disbursed and the sale deed is registered, with possession on the same day.
If you have an existing loan, add time for your bank to issue the foreclosure letter and release the original documents. Put every date in the agreement.
Mistakes that cost sellers
- Rejecting the first serious offer because 'more will come'. The first few weeks bring the most interested buyers.
- Negotiating only on price and ignoring funding, conditions and timeline.
- Saying yes on the phone without putting terms in writing.
- Taking tokens from two buyers.
- Letting emotions or a buyer's comments about your home drive your response.
Frequently asked questions
How much room should I leave for negotiation?
Many sellers list 3% to 5% above their target. More than that tends to put off serious buyers.
Should I accept an offer from a buyer who still needs to sell?
Only with a firm deadline and a meaningful advance. Otherwise keep marketing the home.
What if two buyers offer the same price?
Choose the one with surer funding, fewer conditions and a faster timeline. You can also tell both you have another offer and ask for their best terms.
Can I back out after accepting an offer?
Before a token or written agreement, there is little to stop you, though it costs goodwill. After signing, you may have to refund with penalties or face a court case, so ask a lawyer.
For tax or legal points in your sale, speak to a CA or lawyer. Skyros Estates can help you compare offers on more than price, check a buyer's funding, and handle the back-and-forth so you can stay calm and close well.
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