Home buyers want to get a good deal, but you also want to make sure you get a fair price for your property. Because of this, the most critical part of your home sale often comes down to how well you negotiate with your buyers. Read on to learn three must-know tactics that will help you strike a deal that will make you and your buyer happy.
Set a Fair List Price and Stick to It:
Even if you set a fair list price for your home, buyers who submit an offer may come in low, with the expectation that you will drop your price. What should you do in this circumstance?
Instead of dropping your price, consider offering alternative concessions. For example, you could offer to throw in certain appliances like the fridge or to pay for a portion of the buyer’s closing costs. Alternatively, you could drop the price slightly to show that you are willing to negotiate, but that you will not entertain a bid that is well below fair market value. For more specific details on how to accomplish this, check out this post.
Don’t Divulge Too Much:
As a general rule, you shouldn’t talk about your personal life or selling situation with a potential buyer. Mentioning that you have a deadline because of a divorce or letting it slip that you have to move by a specific date for a job opportunity can be damaging to your negotiation power. If a buyer knows you have a hard and fast reason you need to move, it will give them more ammunition to drive a harder bargain. That’s why it’s always in your best interest to keep the entire negotiation process as professional and neutral as possible.
Limit the Bidding Process:
You can expect a little back and forth as you work to come to an amicable agreement with your buyer, but you shouldn’t let the process drag on for too long. If you notice a buyer is being nit picky or that they are dragging their feet over minutia, it could be an indicator that they’re stretching their budget or have other concerns about the home. If a buyer is serious about your property and is qualified for financing, they should make a reasonable first or second bid. Anything beyond two rounds of revisions may indicate a bigger issue.
Selling your home is a process and you want to prepare for the negotiations with a clear idea of your goals and where you want to draw the line. Use these tips to make informed and calculated decisions throughout the negotiation process!
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