Negotiating For Top Dollar

Preparing your house to be put on the market can be an exhausting and emotional process. However, the stress of getting financially prepared to put money into it or the actual process of dumping a ton of money into it, is all worth it once those offers come rolling in. But, the process of selling your home doesn’t stop there. The hard part of selling a home has only just begun: negotiations.

Negotiating the best deal when selling your home depends on several factors and is much easier when you have one of our trusted agents by your side. Most offers aren’t great and aren’t terrible, but rather lie somewhere in between, and the price is only one piece of the puzzle. That’s why it’s important to understand the underlying conditions in your sale, so you can see what the trade-offs really are.

Once you’ve received an offer, take charge and direct the proceedings. Price is typically the number one concern for both buyers and sellers. If you put a ton of money into the house, you’ll obviously want to make that much plus some. You won’t want to accept a potential buyer’s initial bid on your home. Buyers expect some back-and-forth, so their initial offer will probably be lower than your list price, but also lower than they’re actually willing to pay for your home. Most sellers counter the first offer with a price below their list price because they’re afraid of losing the potential sale. While you want to remain flexible and open to striking a deal, this strategy will only sell your home quickly– but not at top dollar. Instead of dropping down to something close to the buyer’s offer, counter at your list price. Assuming that you’ve priced your property fairly, to begin with, countering at your list price tells the buyer that you know what your property is worth.

Buyers will likely be surprised by this strategy, but it will weed out any lowballers and those interested in a deal rather than the property. If playing this hard with price seems intimidating, try countering slightly below your list price (think in $1,000 increments). You can also soften your counteroffer in other places, so you don’t scare off the buyer too quickly and show that you’re willing to work with them.

It is imperative that you listen carefully to what the other side is offering so that your decisions are informed. If you’ve already done your research and priced your home correctly, the odds are likely in your favor. However, many negotiations fall apart simply because one side or the other doesn’t understand exactly what is being put on the table. Remaining well informed and detail oriented during negotiations will put you in a better position in the end.

Whenever you are in a negotiating situation, you must maintain realistic expectations. After all, it is rare that you will get everything you want while negotiating. Before sitting down to the table, think about what you are willing to give up and what is an absolute deal breaker. That way you are prepared to make a decision when the time comes. Just remember everything is negotiable. If you’re willing to carry back some of the financing, you may agree to their proposed terms, but change the length of the loan or the interest rate.

Try to understand the buyer’s motivation, especially if you have limited offers. While you want to get the best price for your home, there are some instances where it’s beneficial to just split the difference. Remember, the longer it takes to sell your home, the longer you have to drag out the process—and pay the mortgage. A smart negotiator knows when it’s time to call it. The key to executing any negotiating strategy successfully is offering an exceptional product worth fighting over.