When you list your home for sale, you think you’ve priced it right, staged it beautifully, and timed the market for a quick sale!
Reality : Buyers are full of surprises. Buyers rarely pay list price, buyers discount or dismiss improvements you’ve made and buyer’s inspections usually turn up something for you to fix.If that isn’t magical enough buyer’s may have terms that you weren’t counting on e.g. Needing to sell their home before they buy yours.
Whether you plan to or not, you’re going to have to negotiate. Negotiating is simply a way to make smaller concessions so that you don’t lose the buyer and the buyer doesn’t lose your house. Negotiation is designed for both of you to get what you want.
You’ve done something right or you wouldn’t have an offer on your home, but a sale isn’t locked yet.
Three negotiating mistakes to avoid:
1.Demanding top dollar for an aging property:
The market is better than it was during the recession, but an older home that hasn’t been updated or maintained to perfection can’t compete with refreshed or newer homes.
2.Getting angry at a low offer:
A buyer may make an offer for your home that is far lower than you feel it’s worth. Don’t make it personal — it’s a negotiating tactic. If the buyer didn’t want the home, there wouldn’t an offer, at least you know the buyer wants to negotiate.
The buyer doesn’t really expect you to take 20 percent off the list price. Have your agent ask the buyer’s agent for the reasoning behind the low offer before you provide a written response. The buyer could be using inaccurate information, they could be trying to buy above their price range, or they may be investors who use a low-ball formula to acquire properties.
No offers or extremely low offers could be telling you that your home is overpriced compared to other similar homes. Ask your agent for an updated CMA so you can see where the market is heading.
3.All or nothing attitude
Negotiations keep the dialog fluid and the buyer interested. If you know that the buyer wants, it’s easier for you to offer a deal that will work for both of you.
In a seller’s market, you may expect buyers to give you multiple bids for your home. In a soft market, your buyer could simply walk away and find another home to buy because there are other homes on the market. You need to be flexible on the points that count most to the buyer e.g. move-in dates, and the buyer is more likely to be flexible with you on repairs or other negotiation.
Remember, you want to sell your home and your buyer wants to buy it. Maximize your offers with good negotiating techniques.