Negotiations are common to all real estate deals, it’s fundamental whether you’re selling a rental property or your own home. Buyers will make counter offers that suggest a lower price. In such cases, it’s good to go into the negotiation with the buyer. The main purpose of real estate negotiation is to sell a property at a good price. Sellers with good negotiation skills can increase their profit margins from a sale.
If you have a plan to sell your property, you should be well equipped with basic real estate negotiation tips.
If you’re a beginner, it’s not possible to become an expert negotiator overnight, here are a few real estate negotiation tips for sellers to keep in mind when negotiating the sale of your property.
Collaborate with a Real Estate Agent
To know the real estate negotiation tactics it’s better to work with a professional real estate agent who possesses strong negotiation skills. The sellers will have an emotional attachment to their homes, so they may not even be open to negotiations. A good real estate agent will help the sellers in the negotiation process and advise them to hold their feelings back. Your focus should be on getting the best price for your home.
Counter at your list price
As a seller, you won’t accept a buyer’s initial price on your home if it’s below your listing price. Buyers will expect a back and forth negotiation so their first offer could be less than your list price.
If a buyer makes an offer below your listing price then don’t hesitate to counter back with the list price. In today’s market, the properties have the power to attract multiple offers, so this move may not be risky.
Instead of dropping your price, stick to your listed purchase price. The person who wants to buy will remain engaged and come back to you with a higher offer. If you’ve priced your property fairly to begin with, countering at your list price says that you know the worth of your property and you expect to get the money you deserve.
If an offer is fully loaded with contingencies, the seller must cross out the one they do not accept. The sellers also have the option to modify contingencies to meet the buyer. This will offend the buyer and cost the deal, but the owners should stick to their opinions and be confident that they will get a better offer. If you don’t negotiate an appraisal contingency you might sign a contract before your final appraisal and pay a higher price than necessary. So ensure the offers from sellers and move further.
Reject the Offer
If you’re confident, then try a negotiation tactic that’s more extreme than countering at your list price: Reject the buyer’s offer. To keep making them buy, ask them to submit a new offer. If they’re really interested, they will.
This strategy sends a stronger signal that you know the real worth of your property of what you’re asking for it. If the buyer resubmits, they must make a higher offer.
When you don’t counter with a potential buyer then you can accept a higher offer. For the buyer, someone who will make a better offer at any time will create pressure to submit an offer with a high price if they really want the property. This tactic will be useful if the property is on the market for a short time or if you have an open house coming up.
Start a bidding war
The best way to get multiple offers is to list your property and then host an open house. After you list the home on the market, make it available to be shown, and schedule an open house for a few days later. Don’t entertain any offers until after you show the house. As a result, the potential buyers will be in competition and may place higher offers. If you get more offers, then stick to the top bidders and ask for the highest price and best offers.
Get a home inspection
A home inspection will help the seller to know the defects within their property. This allows the seller to anticipate the buyer’s complaints before showing the property. For instance, if you know that you have a bad roof, you may do the repairs and enter it into your listing price so you can negotiate down if the buyer asks.
To execute these negotiating strategies successfully you have to offer a superior product.