There are different ways you can negotiate when selling your house. You can check out our real estate negotiation guide here.
Homebuyers are always trying to get sellers to lower their asking price. But, why come down if you don’t have to?
Today, we’re going to discuss a few negotiation tactics. Most people feel awkward trying to negotiate with others and end up suffering because of it. Real estate negotiation can be done in more than one way, however, so read this guide and you’ll be well on your way to selling that house — at the right price.
How the Real Estate Negotiation Process Works
Selling a house is the same as selling any other valuable, just on a completely different financial level. There are risks for both parties, so you shouldn’t expect a buyer to offer you what you’re asking and they shouldn’t expect you to take their initial offer. All of this depends on the market, of course.
If you’re serious about negotiating, then sit down with your agent to discuss a strategy to move forward with.
When you do this, you’ll want to come up with a bottom line price that you won’t settle for and a price that’s under your asking price that you are comfortable settling for.
Once you’ve got this sorted, you can enter negotiations.
Playing Hardball
Of course, you’ve got your typical back and forth methods: the buyer offers you a price lower than your asking price, then you counter with your asking price and negotiation ensues. There are other, more hardline tactics you can use to get the price you want, however.
It’s all about being patient and trusting yourself and your agent. You’re talking about selling for the most money possible. If you want to sell quickly, you should be contacting a local we buy houses company.
Countering
Every buyer expects a back and forth, so they lowball you with the hopes that you’ll come down enough in price to enter their range. Instead of playing this game, you can counter their offer with your list price or reject the offer with no follow-up. If they really want the house, they’ll come up to your price.
If you do decide to come down with a counteroffer, make sure to put an expiration date on it. This should force a speedy response and only keep serious buyers in the mix.
Use Open Houses Effectively
Don’t accept offers before you hold an open house. This will let buyers know that they’re in an open competition and the winner is the person who opens up the pocketbook the most. You should always try to foster a sense of competition in the buyers.
Closing Costs
Another great tactic is to agree to pay closing costs but increase the asking price.
A lot of buyers expect sellers to cover this cost these days, although it’s not required. It usually amounts to about 3% of the price of the house. After someone’s purchased a house, that extra bit of money at the end might be cumbersome, but they can always borrow a bit more.
Patience Gets You Paid
Real estate negotiation is serious business. It might take a bit longer to sell, but if you use these tactics, you should be able to get your asking price.
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