Negotiating Tips for Home Sellers

Negotiating Tips for Home Sellers

In an ideal world, every homebuyer and every home seller would get exactly the deal they want for their real estate transaction. In reality, the best deals are the ones in which each side feels they got most of they wanted and didn’t have to give up too much to the other side.

As a seller, you will be best served by stepping back and letting your REALTOR® take the lead in negotiating on your behalf—even if you consider yourself an expert negotiator in other areas of your life. You should absolutely be involved in the behind-the-scenes discussion with theREALTOR® representing your interests, but try to avoid direct negotiations with the buyer or the buyer’s agent in order to keep the process impersonal.

Top Tips for Sellers

Avoid emotional decision making: When you are selling your home it can be hard to detach yourself from the process. After all, you’ve enjoyed your life in the property, given it your personal touches, and maybe even raised your family there. Now, though, you need to look at your residence as a business prospect and try not to take any offer or any comment personally.

Rely on your REALTOR®: Prospective buyers typically have a buyer’s agent representing their interests and you should have a listing agent who is representing yours. If you have chosen the right agent, you should feel comfortable letting him take the lead in negotiations to get the best possible outcome for you. Your REALTOR® will know current market conditions better than you and can negotiate with the market in mind.

Always make a counteroffer: Many sellers find a lowball offer insulting and would rather ignore it, but you are better served by acknowledging the offer and beginning the negotiating process. After all, the buyers are at least interested in purchasing your home and it is worth trying to come to a mutually acceptable agreement.

It’s not only about price: It is easy for sellers (and buyers) to fixate on the offer price, but in reality what matters more is your final profit on a completed transaction with an agreeable settlement date. You can negotiate about the price of your home, but remember that it’s equally important to make sure the buyers have financing in place so they can make good on their offer. Sellers and buyers can also make agreements about repairs to the home, who will pay the closing costs and which items convey to the buyers in addition to the settlement date. If you are having trouble getting to an agreement on one issue, it’s possible that a concession on another topic will help cement the deal.

Determine who has the upper hand: You and your REALTOR® can evaluate local market conditions to see whether buyers or sellers generally have more power, but you both can also make this determination based on what you learn about an individual buyer. If you are a desperate seller who has already had an offer accepted on your next home, you may need to be more lenient in negotiations; but if your buyer needs to move faster and there are few homes available for sale, you could have more power.

Move quickly: While it may be tempting to wait and see what other offers come in, REALTORS® often note that the first offer is often the best one and sometimes the only one. If the offer is close to what you had hoped for, keep the momentum going and make a counteroffer so the buyer doesn’t have time to lose interest.

You and your REALTOR® should work closely together to handle negotiations with potential buyers, but before you get too caught up in the process it helps to establish your priorities for your home sale. Once you know your bottom line in terms of profits from the sale and any other details, you can move forward more easily in the transaction.