When you list your home for sale, you
may think you’ve priced it right, staged it beautifully, and timed the market
for a quick sale.
The reality is that buyers are full of
surprises. They rarely pay list price. They discount or dismiss improvements
you’ve made. Their inspections usually turn up something for you to fix, and
they may have terms that you weren’t counting on - like needing to sell their
home before they buy yours.
Whether you plan to or not, you’re going
to have to negotiate. Negotiating doesn’t mean you win and the buyer loses, or
you lose and the buyer wins. It’s simply a way to make smaller concessions so
that you don’t lose the buyer and the buyer doesn’t lose your house. Negotiation
is designed for both of you to get what you want.
You’ve done something right or you
wouldn’t have an offer on your home, but a sale isn’t in the bag yet. Don’t
blow it. Here are some negotiating mistakes to avoid.
Demanding top dollar for an aging property.
Yes, the market is better than it was during the recession, but an older home
that hasn’t been updated or maintained to perfection can’t compete with
refreshed or newer homes.
When you’ve lived in a home for some
years, you miss the dings and scuffs that make a home look used. You don’t see
the age of your finishes and fixtures the way buyers see them. Even if it’s not
torn or broken, buyers may see certain things as needing to be replaced.
Getting angry at a low offer. A buyer
may make an offer for your home that is far lower than you feel it’s worth.
Don’t take it personally - it’s a negotiating tactic. If the buyer didn’t want
the home, there would be no offer, so at least you know the buyer wants to
negotiate.
The buyers are using a low price to tell
you something. Your job is to find out what that something is. Have your agent
ask the buyer’s agent for the reasoning behind the low offer before you provide
a written response. The buyer could be using inaccurate comparables, they could
be trying to buy above their price range, or they may be investors who use a
low-ball formula to acquire properties.
No offers or extremely low offers could
be telling you that your home is overpriced compared to other similar homes. If
your agent told you an estimated range where homes similar to yours are selling
and you priced above that range, you need to lower the price. A low offer can
also mean the market is slowing down and the buyer feels more confident. Ask
your agent for an updated CMA so you can see where the market is heading.
Negotiations keep the dialog fluid and
the buyer interested. In a seller’s market, you may expect buyers to give you
multiple bids for your home and that could happen, but it’s rare. In a soft
market, your buyer could simply walk away and find another home to buy because
there are other homes on the market. You need to be flexible on the points that
count most with the buyer, like move-in dates, and the buyer is more likely to
be flexible with you on repairs or other negotiation points.
Remember, you want to sell your home and
your buyer wants to buy it. Maximize your offers with good negotiating
techniques and move on with your life. And when you buy your next home, you’ll
be more experienced and a better negotiator knowing the seller’s side of
things.
Carrie Colby is the broker/owner of Premier
Properties in Raymond. To ask a real estate question for one of our experts,
email columnist@TheWindhamEagle.com.
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