Effectively Negotiating The Sale of Your Home
The more presentable your home is, the more the negotiating power you retain. You must keep your bargaining position by taking care of any flaws or defects that the buyer could use against you. Lenders are less willing to fund a home that has significant problems, so if you eliminate any chances of the appraiser finding fault, you are, in a way, negotiating. Most buyers want a home they can picture themselves living in, so maximize the home’s appeal, i.e. negotiate with the buyer’s desire for comfortable living. You want your home to be a turnkey sale, not a turn-off fixer-upper.
You will need to eliminate any attachment to your home. Do not allow any emotional ties to linger as you fix, clean, scrub, paint, update, and stage your home. Let the importance of selling your home override any memorable moments of your life associated with it. This way, you won’t be offended if the myriad of agents, appraisers, and potential buyers put anything in a negative light. Some use negative input as a negotiating tactic, so try to be impervious to blunt comments or criticisms. Remember that buyers, no matter their behavior, are making one of the biggest decisions of their lives.
During the sale process, you will be communicating with many people. If there are some personal troubles, like divorce, it is best not to discuss them openly. Limit your conversations with realtors and potential buyers to the sale of the home, not about your personal reasons for selling. Negotiating must be kept on a business level otherwise your urgency could be seen as desperation which could hurt the sale.
Finding an objective, trustworthy realtor possessing expertise, knowledge and common sense, is also important. They should be ready to explain the principle of substitution and competition in real estate. Your home will be competing with many others just like it, so it must be priced correctly to catch a buyer’s eye and to bring you the best deal. Realtors that provide effective ways to market your home or show you staging techniques to make your home stand out are generally willing to work to get the best price.
When working side by side with an innovative real estate agent, your expectation is to get as many buyers interested as possible. Sellers need buyers and buyers need sellers, but what if there are several buyers wanting your home? If your agent is able to create multiple offers because the home is reasonably priced, then you have the power to negotiate the best deal for your home.
When a buyer is interested in your home, you will not know if they are qualified or have enough money available for down payments. It can be frustrating to finally find a buyer, only to have the sale fall through because of financing. In the early stages of negotiating, ask your realtor to find pre-qualified buyers. These buyers should be able to provide a lender’s pre-approval letter with their offer. Due to the number of default loans, most banks require pre-qualification anyway.
When the final stages of negotiation are on the table, respect the buyer’s efforts to purchase your home. They will expect some sort of small concession based on their resources, interest and needs. At the same time, they should consider giving you something.
If you respond quickly to offers, it shows you are serious with negotiating the sale. It is best to keep a non-emotional composure in the offering stages, so feel free to ask buyers to justify lower offers. Be ready to give justifications for asking for a higher price as well. The offers from both sides should be consistent with each other and the purchase agreement outlines.
When an agreement to purchase is made, the negotiating does not stop. Houses typically take 30-60 days to close with the inspection, the appraisal, the purchase contract, and financing process to consider. Your active involvement is helpful to all of those working to finally close the deal. At the end of the day, if both the seller and the buyer walk away satisfied, the real estate transaction will be considered a success.