Setting and negotiating a price is one of the most difficult parts of selling a house.
You want to ensure that you receive a fair value for your home. Home buyers are looking to save money, but you want to be sure you get the best deal possible. Due to this, the key part of selling your house is how well you negotiate with buyers. You don’t want the sale to fall through if you’re too firm, but at the same time, you also do not want to lose money.
Learn the three most effective ways to negotiate a price for a home as a seller.
Do: Set an honest list price
Even if your list price is fair, buyers who submit an offer might come in low with the expectation that your price will be reduced. What should you do?
Consider offering other concessions instead of lowering your price. You could, for example, offer to include certain appliances such as the refrigerator or pay a part of the closing costs.
You could also lower the price slightly, to indicate that you’re willing to negotiate but will not accept a bid below fair market value.
Don’t Divulge Too Much
You should not discuss your personal life with a buyer while you are negotiating a price.
Your negotiation power can be damaged if you mention that you are on a strict deadline due to a divorce, or that you need to relocate by a certain date to take up a new job.
A buyer will be more willing to negotiate if they know you have a solid reason for moving. It’s in your best interests to make the negotiation process as neutral and professional as possible.
Don’t: Let Bidding Go On Forever
It’s normal to have some back and forth with the buyer as you try to reach an agreement, but don’t allow it to drag on too long.
You may notice that a buyer is picky about minor details or that they drag their feet. This could indicate that the buyer has a tight budget or other concerns with the house.
A buyer who is serious and qualified to finance your property should submit a reasonable bid. If you have to make more than two revisions, it may be a sign of a larger problem.
You should prepare yourself for negotiations by defining your goals.
Get Discounted Expert Advice
Selling a home for sale by the owner (FSBO), is not for everyone. According to Clever Real Estate’s data center about 36% home sellers try to sell FSBO. However, only 11% actually successfully sell their house.
Home buyers also think that FSBO sellers have it easy because they do not have an agent to represent them. Clever’s survey of 1,000 homeowners found that 73% believed they, or their agent, could negotiate better than a FSBO.
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