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potential buyers fail to fully exploit the opportunities presented by the emergence of a buyer’s market and end up buying properties for prices above or equivalent to those found in a seller’s market.
This presumption of desperation on the seller’s part often leads to potential buyers making unconscionable offers in the vain hope of attaining a ludicrous bargain, often in the process missing what could have been a great opportunity.

A buyer’s market simply refers to a situation where there are an increasing number of houses on the market coupled with a declining number of buyers.
This normally results in longer listings of individual properties on the market at the given period.

Now one can rightly state that we are experiencing a buyer’s market in our country because of the current liquidity constraints.
The offer process has to start at the house hunting stage, one can never overemphasise the benefit of identifying the right agent to collaborate with for the bargain search.
Once this is done, it will make the rest of the process much easier for one can benefit from the wealth of knowledge the agent will possess on the market trends.

The next step will be to identify the property one can offer a low price for. It is advisable at this stage not to target new listings on the market because the sellers in most cases are hard negotiators at this stage and are still expectant of achieving their desired price.
Identify properties that have been on the market for a month or more and ask your agent to find out for you the reasons why the property is still on the market.

It is best to be armed with as much knowledge as possible, especially the attitude of the seller.
After identifying the properties that have been listed for over a month, identify the properties whose price has been reduced at any stage of the listing process.

This in most cases is a good sign that the seller is flexible and might be agreeable to a lower offer.
Internet listings in some cases are not regularly updated to show price fluctuations, it is best to further contact the agent and find out more on the target property.

At this stage half of the job is done, one is already equipped with the knowledge of the seller’s propensities.
The next step is that of making the offer. It is important to be honest with the agent and yourself about the reason for wanting that particular property.

If the reason goes beyond just investing and flirts with sentiment, such knowledge will help assist both buyer and agent to make informed offers that do not leave them gullible at the negotiation stage.
One can give a two-pronged offer where the seller is put in a position to make a decision.

It will be a double offer with an option for one method, it can be drafted in such a way that the first offer will involve a payment plan of a deposit and balance payable within a certain period.
The second offer will be lower than the first, but involve a once-off payment. How this is drafted will depend on which method the buyer really wants to use, that is, the one that they will make more attractive.

This technique will give the seller options and normally gives way to the open-mindedness on the part of the seller.
Another technique is to write an offer asking for something that the seller clearly does not want to let go off.

If the property comes with something the seller insists will not be included in the sale, write your first offer contingent upon that aspect being included in the sale.
When that is expectedly refused, then write a second lower offer excluding it from being part of the sale.

Normally at this stage, the seller will be more receptive to your new offer, as the mind will now be focused on the victory of retaining the thing that was not to be included in the sale.
Write offers that have a short acceptance period. It is important to both parties to realise that when it is a buyer’s market, the buyers have more options.

An offer with short acceptance period restricts the seller from seeking advice from a relative, say an uncle who always thinks that a higher price is achievable.

• Vengai Madzima is a property consultant and analyst with Wisdom Properties. He can be contacted on 0772 468093 email: [email protected]