When selling your home, you want to get the best possible offer. Anything less is like giving money away. So, how do you negotiate effectively to get the best offer for your home? The first step is realizing that the negotiation process starts before you ever get that first offer.
Where Negotiating Starts
Negotiating home prices starts with choosing an agent, and it is important to choose carefully. Choosing an agent who is friendly and personable may make you feel good, but if he or she doesn’t have a proven track record of getting the best offers on homes, this is not the agent you want. The agent you want is a skilled professional ready to go to bat for you. If you’d like to talk to one of our listing agents, contact us.
Setting Yourself Up for Strong Negotiations
When you list your home, begin by pricing the property for the current market. That is, don’t just price it based on what the last home’s sale price was. This is particularly true if home values are appreciating in your area. Begin by asking for top dollar, even if it is more than you think you will get. If the market is hot, buyers just might surprise you. In addition, asking for top dollar gives you more room to negotiate with potential buyers, so they can feel like they are getting a good deal while you are too.
Your Place at the Negotiating Table
When the offers start rolling in, it is time to take a back seat. You should stay informed, but you should allow your agent to handle the negotiation process. This is, after all, what you are paying him or her for. Remember that your agent has the negotiating expertise and practice that is more likely to get you what you want.
If offers come in low, your agent is likely to make a counter-offer. Low offers are commonly taken personally by homeowners – which is one of the reasons it’s best to let your agent handle negotiations. Buyers are just testing the waters anyways. This is the nature of negotiations. Rather than being immediately dismissive, a counter-offer opens the door to further negotiation. The counter-offer will be close to the seller’s original asking price, but shows some concession. If negotiations drag on, remember that not all concessions have to be in the price. Sometimes, working with the buyer on financing or throwing in appliances is all it takes to get the deal done.
Selling Your Home
While the suggestions above are tried and true, there are some riskier negotiation techniques that can also work in the right situations. A bidding war is a risky venture, but in a hot real estate market offering your property slightly below value might net you more than you expected.
Don’t throw money away when selling your home. Follow the tips above and with the help of a professional, get the most for your property. If you’d like to learn more about selling your home, read our seller series. And if you’d like to see what your home is worth, use our free tool: