One of the biggest hurdles sellers face is negotiating offers. The good news is, the process doesn’t have to be difficult. If you do your homework and list your home at a competitive yet lucrative price, it’s easy to determine whether an offer is too low or just right. That said, there is still a little finesse that’s required to successfully negotiate an offer that’s fair to both the buyer and the seller. Use the tips outlined below to master the process!
Buyers often submit offers that are low, anticipating that the seller is going to counter. If you simply accept a buyers offer without countering it, you very well may be missing out on an opportunity to increase the sale price of your home. Remember, there’s no harm in countering in an effort to reach a mutually beneficial compromise.
Set an expiration date for your counter offer:
When you submit the counter offer to the buyers, write on your offer that it expires in 24 hours or at a specific date and time. Doing so uses a classic sales technique; it engages the buyer’s mind to “act fast” so they don’t miss out on the opportunity to purchase your home. If they really love it, a limited time to respond can be just the trigger they need to accept your counter and move forward with the sale.
Keep an open line of communication during the negotiation process:
When you deliver your counter offer, it’s a good idea to provide explanations for any changes you made. Also, be reasonable with your requests and keep your buyer’s situation in mind. Remember that you were in their position when you bought your home and that you most likely will be again soon. A dedication to fairness for all parties and effective communication can improve the entire process and result in quick transition to escrow.
Use technology to simplify the process:
The biggest thing you can do to take the pressure of yourself when it comes time to negotiate offers is enlist the help of a seller service that can provide expert guidance on how to respond. HomeBay not only has a proprietary software that provides offer guidance, we also offer sellers access to real estate experts who can help with any questions you have.
Remember that price isn’t everything:
The bottom line is, some offers are better than others, and the reason often has nothing to do with the price. For instance, a cash offer on your home that is $20,000 under asking price with no negotiations for repairs is a solid offer. In comparison, an offer that’s above asking price from a seller with risky financing can cause complications in the long-run. It’s important to be happy with the price, but ultimately you want to accept the offer that is most likely to close.
Use the tips outlined above to take the stress out of the negotiation process!
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