Key points in understanding the normal procedure for counter-offering
Don’t be totally convinced by the saying ‘the first offer you receive is usually your best offer’ It is common for negotiations to go backwards and forwards six times before an agreement is reached
It has been said that a property will attract the most interest in the first five weeks of exposure to the market. This can depend on a number of factors but is worth considering and remembering.
Inevitably emotions become involved but don’t let them take control. If an offer is received that you feel is offensively low, resist the temptation to be offended – they are just playing the game and it is not personal! Instead of refusing to continue the negotiations, you should instead counter offer with what you consider to be reasonable. There’s no point in letting interest slip away - even if you are initially offended by it. This is a common mistake sellers make in the private setting and should be avoided at all costs - every offer has merit and is worth counter-offering.
Setting your asking price and researching the market provide solid foundations for the negotiation process.
Offers should not be viewed solely on the offer price. Today conditions play an important role in the negotiation process. Counter offering a conditional agreement with a cash out or escape clause is common place to balance the risk and reward of the offer.
The use of escape clauses should be handled carefully, as including them in every counter-offer may lead to the end of the negotiation. They are best used when you feel the conditions attached to the offer may take some time to be fulfilled, or have a chance of not being fulfilled at all.
A prime example is when an offer is conditional upon the sale of the buyers own home. Accepting this condition may mean you are tied into an agreement that could continue for a month or more before becoming unconditional, and that is only if the buyer does actually sell on time. In this case including an escape clause is reasonable.
Offers which are conditional upon finance, a LIM, valuation report or a builder’s report generally shouldn’t warrant an escape clause. A buyer may have to spend $500 - $2000 on professional services to fulfil these conditions, in which case they may feel uneasy about accepting an escape clause as their money could be wasted should you receive another offer and invoke the escape clause. There is already a risk to the buyer that a builder's or valuation report will not prove satisfactory for them. Sellers don't want to introduce another variable that will put them off from proceeding further.
In this case it may be considered unreasonable to include an escape clause unless you have reason to believe the conditions are unlikely to be fulfilled.
Your interactive 
