When selling your home, you have two objectives to meet. The first aim is to sell the home, and the second goal is to get a fantastic return on the investment. Your strategy must have the right mix so that you don’t run off potential buyers. In other words, you’ll want to appear as if you are flexible but not so flexible that you take an offer that you will regret in the end. The following are 17 strategies, tips, and information tidbits that you may use when negotiating offers to sell your home:
- 1. Know Your Top and Bottom
- 2. Take a Course on Negotiating Skills
- 3. Make a Smashing Presentation
- 4. Know Your Buyer
- 5. Deter Lowballing in Your Listing
- 6. Hesitate to Avoid Seeming Desperate
- 7. Restate the Unique Selling Points
- 8. Reject a Bad Offer
- 9. Counter an Unsatisfactory Offer
- 10. Put a Time Frame on the Counteroffer
- 11. Be Personable but not Revealing
- 12. Offer to Pay Closing Costs
- 13. Arouse Some Competition
- 14. Be Willing to Compromise
- 15. Let an Agent Negotiate for You
- 16. Give the Buyer Some Goodies
- 17. Never Be Hasty
Before you even start the negotiation process, you need to know two important numbers, which are the high and low. The low is the lowest that you will accept from your buyers. It’s your rock bottom that you will not go under for any reason of any kind. Your high number is the amount that you hope to receive from the sale. Once you’re sure of the price that you want to get for the home, you may want to add a few thousand dollars if it makes sense for the market. If you start higher than your highest figure, you could negotiate down. Have your agent check the current market and recent sales to make sure that your high figures are fair.
2. Take a Course on Negotiating Skills
The chances are high that this will be the only time in your life that you go through the home selling process. You want to be the best at this process as you possibly can. It won’t hurt for you to take a crash course on negotiating. A few hours or days out of your calendar to learn the basics of negotiation may be the best investment that you’ve ever made. You can check online for a free course, seminar, webinar, or some other kind of educational program. Your real estate agent may have a special training for you in this area.
3. Make a Smashing Presentation
It’s wise to put a decent investment in staging the home for the showing. The way that you present the house at the first walk-through will have a huge impact on the offers received. Stylish dining rooms, inviting porches, and dressy fireplaces are some features that can persuade potential buyers to increase their offers. If you hire a staging company that has experience and excellent reviews, you stand a good chance of impressing and dazzling your potential buyers. Dazzled people will pay more to own your home.
4. Know Your Buyer
Knowing how to read your buyer will aid you in the negotiation process. Use tactics to learn their body language and try to find out their motivation for the purchase, as well. An example of buyer body language is handed in the pockets. Hands in the pocket are indicative of hesitation. If your potential buyer has his hands hidden, he is not ready to buy the property just yet. On the other hand, open palms and lots of eye contact mean that your deal is almost closed. You may just need to say one more thing to get the closing handshake.
5. Deter Lowballing in Your Listing
One way that you can cut down on the time you have to spend negotiating is to deter lowballing early in the process. You can request the company that is listing your home to add a note that you will not accept lowball offers. That tactic will deter many people from making the offer, but the chances are high that you would not have appreciated those offers in the first place. You can have the property lister write the note tactfully and respectfully so that you don’t immediately turn off a large portion of your buyers.
6. Hesitate to Avoid Seeming Desperate
The appearance of desperation is one of the biggest killers of reasonable offers. If the buyer’s agent thinks that you are desperate for cash, he is going to try to lowball you thinking that you can’t afford to say no. You must remain calm no matter what your situation. If you stay relaxed and confident, you let the buyer know that you are still in charge of this deal. You let that person know that you are not going to jump on the first offer that comes your way.
7. Restate the Unique Selling Points
Not everyone will advise this tactic, but it could work. You may want to remind the potential buyer of the unique properties that make your home a hot commodity. For example, one of your rooms may provide access to the backyard. You may have a snazzy fireplace. Your home could have a large den that the buyer can turn into an office or an extra room. It may do you good to summarize the good points and make the person rethink his offer. Sometimes, people forget after they have the initial walk-through, and a good reminder may just jolt them into action.
8. Reject a Bad Offer
Do not be afraid to reject an inadequate offer, especially if you’re not pressed to sell the home quickly. Even if you are pressed to close, this tactic may have a positive effect on the deal. A rejection says to a potential buyer that you are not afraid to walk away and wait for someone who is willing to give you a decent price. If the prospective buyer likes the house, he will most likely make another offer. The rejection could go the other way, too, but you can take a chance early in the game.
9. Counter an Unsatisfactory Offer
Another tactic that you may want to use instead of flat-out rejecting the officer is making a counteroffer. A counteroffer is an offer that’s in between what the prospect offers you and what your high figure is. What you may desire to do is go down only about $2,000 from your top price. That will make you appear as though you are flexible, but it will still leave you in control. The prospect may counter your counteroffer. You can keep doing this until you reach a fair agreement.
10. Put a Time Frame on the Counteroffer
Putting an expiration date or a time frame on a counter offer is a great way to light a fire under a potential buyer. If the buyer believes that you will only keep an option open for a short while, he may be fast to close the deal because he doesn’t want to risk losing the affordable negotiation price. The way that you deliver the message of the expiring offer will make a huge difference in how well it goes over. Let them know that you must move along with the process, but don’t make it seem too threatening or forceful.
11. Be Personable but not Revealing
Buyers love to deal with a person who has a pleasant personality. Therefore, you’ll need to be as personable as you can to make the person feel comfortable with you. However, you don’t want to reveal too much about your process. Letting the prospective buyer know your financial situation or your motivation behind the sale is a huge no-no. It could ruin your chances of getting a reasonable offer for your home. You can be cordial without being too forthcoming, and that’s the perfect way for you to be if you want to make positive things happen with your property.
12. Offer to Pay Closing Costs
In the process of negotiating, you may have to do something to close the deal. If you’re not happy with dropping the price of the home, you could offer to pay the closing costs for the buyer. The buyer will love you for it. It will be a good-faith offer that may give the person the incentive to buy the property. Only use this tactic if you’re in a desperate situation, and you have to offer something to get the customer to go through with the deal. Do not make this offer early in the negotiation process.
13. Arouse Some Competition
The human mind works in mysterious ways. Many people strive harder for something when they know that someone else wants it. Therefore, you may have to create some competition. You can hold an open house and then refuse to allow offers on the home until the open house is over with. That should stir up the pot and create some competition between interested persons. People will fight tooth and nail for something that everyone else wants or something that they can’t have. They are less likely to fight hard if they think that getting the item is easy. Such rings true for a lot of things in life.
14. Be Willing to Compromise
If you genuinely want to sell your home, you will have to be willing to compromise. You may have to give an inch just to gain a mile. If you have too much of a rigid stance on the sale, you will lose some potential buyers. The deal will look attractive if you look like you’re willing to compromise with the person who shows interest in the home. As mentioned before, you may want to use the closing cost as a bargaining chip rather than altering the buying price for the house itself. Give a little, and you may see yourself closing the deal very soon.
15. Let an Agent Negotiate for You
Don’t be afraid to let an experienced agent take the lead and do some of the negotiating for you. You may be a great salesperson and a shrewd negotiator, but an agent has more experience that you do. Perhaps this person has negotiated with prospective buyers many times. If that’s the case, then you will do well for yourself by letting that person have a go at it. It may just allow you to close your sale faster so that you can move on and do what you need to do with the rest of your life.
16. Give the Buyer Some Goodies
If you’re stuck at a stalemate, you could always offer your prospect some goodies that will make their purchase more attractive. For example, you may have some items inside the home that you were planning to sell. Instead of selling them, you can offer them to the prospective buyer as sort of an incentive to get that house sold. You could provide items like televisions, washers, dryers, and even some furniture if you want to be super generous. It may work out in your favor because the prospect will feel less stress about having to buy these items once they move in.
This information is provided courtesy of The Eastside Real Estate Team. Keep us in mind for all your real estate needs. Call us today at 425-200-4093.
17. Never Be Hasty
The last tip for you is never to be hasty no matter what you do. Even if an offer sounds fantastic, you’ll want to give yourself a night to think about it. Buyers get nervous when sellers act too quickly sometimes. They may take it that something is wrong with the home, and it may cause them to get anxious and possibly back out. Take your time. If your buyer is interested in buying the house, he is not going to bail out just because you take one night to decide on his offer.
Now you know a few tips that could help you negotiate your home sale. Don’t hesitate to take the advice of an experienced agent, however, so that you can go into this with the best leverage.