Knowing how to negotiate as the seller of your home can be very overwhelming. How do you negotiate? What price do you ask for? What do you compromise on? All of those details can feel very stressful. Luckily, we have some real estate negotiation tips that can help make the whole process a lot easier. Like any great deal, preparation is always key.
#1. Work with a Real Estate Agent
As a seller, one of the best negotiation tactics you can use is working with a real estate agent. They know the market, they aren’t emotionally attached to the home, and they know how to negotiate the best deal for you.
Listing a home as “for sale by owner” might sound rewarding, but in most cases, homeowners tend to find the selling process overwhelming, not to mention that the legal aspects of selling your home are something you need to get right.
If you’re planning to sell your home, even if you think you want to sell on your own, scheduling a meeting with a real estate agent to talk about your home, and gather any tips they might have is a great way to get the ball rolling.
#2. Set a Realistic Asking Price for Your House
You’ll also want to look at the market and the value of your home and set a realistic asking price. Going too high won’t bring in many buyers and going too low can have you losing money you could use on your next house.
To find the best price for your house, look at what houses in your neighborhood are going for and see what features they offer. If your house has more rooms, you may ask for more than they are. If your house is smaller or doesn’t have many recent upgrades, you may ask less.
#3. Be Polite and Courteous
No matter what you’re asking for your home or how you’re planning to sell it, it being polite and courteous and showing respect to any potential buyers is the best thing you can do.
Being rude can make negotiations a moot point if the buyer leaves because they don’t like how you’re treating them. Try to overcommunicate where possible, always speak positively if you are in any way dealing with a potential buyer, and try to respond as quickly as possible.
Read these Tips for a Successful Open House for more tips like this!
#4. Get a Home Inspection
Getting a home inspection is incredibly important when selling a home. If there are problems, you can fix them or, if that’s not an option, at least you know what you’re selling and you can adjust your list price accordingly.
If you do fix any problems that come up, that’s a bonus and may boost how much you can ask for your home. This is especially the case if you do major renovations and replace old flooring or appliances with brand new ones.
A home inspection also signals to the buyer that you’re taking the process seriously and ensures you won’t be surprised when a buyer brings up a problem they noticed with the house.
#5 Offer to Pay Closing Costs
If you’re dealing with a tricky buyer who is asking for a lot of concessions or keeps trying o lower your list price, offering to pay closing costs is a negotiation tactic you can use to seal the deal. This usually means paying appraisal fees, inspection costs, and attorney fees.
Many buyers aren’t swimming in cash after making the down payment and paying to move. Offering to pay these costs can help lead to a much quicker sale, and may offset some of those items they wanted to keep talking down, helping you get a higher total price for the home.
#6. Put a Deadline on Your Counteroffer
During a sale, a buyer may submit an offer that’s lower than you like and then you’ll counter their offer. This puts you in a binding negotiation and it’s seen as unethical for you to accept any better offer that comes along during this time.
By putting an expiration date on your counteroffer, you give the buyer a deadline and if they don’t meet it, you can move on to other buyers who may be willing to pay more for your home.
The expiration date shouldn’t be too short though as it may insult the buyer and lead them to walk away. A week or two is usually a standard timeline
#7. Don’t Be Afraid to Reject the Offer
If an offer doesn’t meet your requirements, don’t be afraid to turn it down. Taking a sub-par offer is not going to make you happy and sellers’ regret is just as real as buyer’s remorse. Make sure what a buyer is offering benefits you. If it doesn’t, say no. You don’t have to offer a counteroffer and if you don’t, you can accept any better offer that comes along.
The buyer may come back with a better offer or they may not. But ensuring an offer meets your basic requirements will have you feeling good at the end of the whole process.
#8 Keep Your Cards Close
Keeping your cards close to the chest is one of the most basic rules when negotiation the sale a house. Don’t talk about any stress or pressure you’re under with any potential buyers. If you need to make a quick sale or are looking for a specific price, don’t let the buyer know. They will likely use that to negotiate a lower price than you wanted in the first place.
Negotiation is a difficult skill to master, but when you’re selling something as big as your home, it’s important to put your best foot forward. If you need help negotiating the value of your home, contact one of our real estate agents at BlueWest Properties. With years of selling experience, our agents have what it takes to get you the best offer possible.