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 is 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 Comparative Market Analysis (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 such as, move-in dates. As a result, the buyer is more
likely to be flexible with you on repairs or other negotiations.
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,
1263 Roosevelt Trail in Raymond, ME. She can be reached by phone at
207-655-2225 or email at cmcolby@maine.rr.com
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