The Stages of a Real Estate Negotiation: A Complete Guide for Sellers and Buyers

The Preliminary Phase: Market Analysis and Property Positioning

Before entering the negotiation itself, it is essential to lay the groundwork on which the process will develop.

This phase includes:

• defining the asking price, calibrated through comparative market analysis and a precise property valuation;

• studying local demand, competing properties, and typical selling timelines for the specific market segment;

• preparing documentation such as floor plans, land registry records, energy performance certificates, and other required documents.

Thorough preparation helps prevent delays and enhances the property’s credibility in the eyes of potential buyers.

The Purchase Offer

The negotiation officially begins when the buyer submits a purchase offer, a formal document that includes:

• the offered price;

• the proposed timeline;

• any suspensive conditions;

• the amount of the deposit accompanying the offer.

The offer is valid for a limited period of time; once it expires, it is no longer effective. It is the tool that allows the seller to assess the buyer’s genuine interest.

If you’d like to learn more about how to correctly complete a purchase offer and which elements must never be missing, read our dedicated guide on how to make an offer to buy a home.

The Seller’s Evaluation of the Offer

When a purchase offer is received, the seller must review it carefully, considering several factors: the offered price compared to the property’s actual market value, the timeline requested by the buyer, and the presence of any suspensive conditions that could affect the successful completion of the sale.

In some cases, the offer is already well-balanced and can be accepted immediately, avoiding longer timelines or additional uncertainty. In others, it may be advisable to submit a counteroffer to realign expectations and find common ground that satisfies both parties.

The Counteroffer and Negotiations

The counteroffer phase is when the seller and buyer begin to engage in dialogue, seeking a meeting point. Negotiations may involve price, timelines, payment terms, or works to be carried out.

The key is communication: transparent, respectful, and effective. Listening to the other party’s needs and providing clear explanations helps prevent misunderstandings and reduces the risk of conflict. At this stage, a skilled agent is a valuable mediator, capable of managing objections and securing the best possible agreement.

Agreement Between the Parties: From the Compromise to the Preliminary Contract

When seller and buyer reach an agreement on price, terms, and timing, the accepted offer evolves into the next step of the negotiation: the compromise, also known as the preliminary sales contract.

This is a crucial document, as it formalizes the agreement and clearly defines the mutual commitments leading up to the final deed. The preliminary contract is often drafted or reviewed with the support of a notary to ensure maximum accuracy and clarity.

It typically includes:

• the agreed price, payment terms, and timelines;

• protective clauses, such as penalties for non-compliance or specific conditions requested by the parties;

• a description of the property and confirmation of its documentary compliance;

• the amount of the confirmatory deposit already paid or to be paid.

Once signed, the preliminary contract is usually registered, providing an additional level of security. For both parties, this represents a decisive step: from this point on, the commitment to the sale becomes stable and legally binding, guiding seller and buyer through to the day of the final deed.

Closing the Negotiation and the Final Deed of Sale

The negotiation concludes with the notarized deed, the final act through which ownership is transferred from the seller to the buyer.

During the deed execution:

• the balance payment is made;

• the final documents are verified;

• the transfer of ownership is formally completed.

Any failure to comply can lead to significant legal consequences, which is why it is essential to arrive fully prepared.

The Importance of Professional Mediation

In the buying and selling process, the presence of a qualified real estate agent truly makes a difference. Their role is not just to present the property, but to guide both seller and buyer through every stage of the negotiation, facilitating dialogue and anticipating potential issues.

An experienced professional helps keep discussions calm, avoids misunderstandings, and speeds up the process through proper management of documents, verifications, and formal steps. Their mediation ensures transparency and protection for both parties, and it is often this support that turns a good negotiation into a successfully concluded sale.

Why Choose Engel & Völkers for Your Transaction

Engel & Völkers offers clients a structured, international, and highly professional working model. The strength of the brand, combined with the expertise of its consultants and a global network active in over 30 countries, allows transactions to be handled with high standards and maximum clarity.

Relying on Engel & Völkers means having a partner by your side who oversees every stage—from the initial valuation to the final deed—with competence, discretion, and constant attention to protecting the client’s interests.