There is nothing worse than expecting and planning for a certain amount of money and then you get gazundered. Gazundered is when someone comes back with an offer lower than you agreed.
This kind of behaviour which puts you the seller under pressure to accept a lower-than-agreed amount or risk losing the sale is most common in real estate markets when a buyer, just before the exchange of contracts, says they want a price reduction and threaten to pull out of the deal if they don’t get one.
This is a practice one can say is prevalent in other types of businesses too. To name a few; car selling, clothing and food supply businesses.
So, here is how you can protect your deals, big or small
Get it in black and white
Bind the buyer with a formal, written contract. Once you’ve exchanged contracts, your buyer can’t renege on price. A signed document by you both makes offers much more binding than a verbal agreement.
However, be warned, this practice can sometimes ruin what was a long standing business relationship. And, it has been known to destroy family relationship too but, if you choose the wording carefully; there will be no tears and falling outs.
To get it down in black and white means there will be little chance of issues coming up like being offered less than agreed, the payment being delayed past the agreed date or the buyer walking away and leaving you high and dry.
Ask about the money
To make sure they are in a position to buy from you and not time wasters, bring up the subject of money. Have them disclose a little about their finances.
Or, ask for bank statements or let them write down a payment plan if the money is not available at once. If there is a third party involved, have that party sign a confirmation letter saying they will indeed pay.
Also, you can ask a small amount of money as a deposit. A non-refundable deposit is ideal because it shows commitment. Either way, refundable or non-refundable, the deposit upon initial offer acceptance will ensure the buyer sticks around.
Be careful though, about over-pricing. If you do, you cannot and should not cry foul when the deal does not happen. Pricing the product far above the market price may mean that your buyer will struggle.
Note too that some people accept to pay at first offer price just so that they can bag the deal and shut others out but, are actually intending to gazunder you later.
Have a backup
Once you make a deal and before the money comes, keep selling the product. Do not stop networking or inviting secondary offers. This is important if you just have a verbal agreement and nothing in black and white.
Having a back-up is important because it’s not always easy to know how a verbal agreement will go. Even with careful scrutiny the deal can go south very fast, so always have a back-up.
However, do let the primary buyer know you have active backup options to minimize blow-ups. This will also let them know that the leverage they think they have is not that high.
