Negotiating Strategies For Sellers:

The first step in the selling negotiation is the buyer or buyer’s agent will contact the seller or seller’s agent that they want to make an offer. This is only official when they present a signed purchase and sale agreement. If you are working with an agent, they will call you and let you know an offer has come in. The offer will need to be signed by you, whether you accept it or not. Your agent will carefully go over the offer with you before you decide if you want to accept, refuse, or counter their offer. At this point it may be tempting to move too fast and push through negotiations quickly, especially if you are in a financial crunch, are relocating, or if there are few buyers and numerous houses on the market. While time is always of the essence in real estate transactions, don’t jump too fast.

Real estate transactions often fall though because there are not enough negotiations with the buyer. One situation that might come up is the buyer might come in with a low offer based on the fact that the house will need repairs. It is important to make sure the buyer’s estimate as to the costs of repairs is accurate or it may be possible for you to do the repairs yourself. Instead of creating a “deal breaker,” you may be able to negotiate with the buyer so everyone gets what they need.

Another pitfall is allowing your emotions to rule the deal. It is never worthwhile to take offense to any negative comments regarding your home or landscaping. Your house is simply a commodity and if the market is not in your favor then you may have to offer a decorating allowance or a lower price. If you are in a seller’s market then you should counter with a full-price offer. Mostly, be sure you deal with the buyer and not get offended by their offer.

Some people are reluctant to counter offer as they don’t want to lose a buyer. Negotiating is a give and take process. If you do not counter then you may end up accepting a lower price than you need to. However, it may not be wise to counter on the little things as you don’t want to lose a buyer over a $50 fix. All counteroffers also need to be in writing and signed by both parties.

It is important not to fall in the trap of trying to bargain with someone who is not seriously committed to buying your home. If you are a serious seller, don’t waste your time on those making unacceptable low offers or engage in endless negotiations. This could potentially costs you a lot of money in not being able to work with serious buyers during that time. A real estate agent working for you will make sure the buyers have not misrepresented their buying power by asking for a pre-approval letter from a lender. It is important not to tie up your property for weeks with a buyer who will not qualify to purchase your home.

Most home buyers and sellers want to arrive at a win-win agreement. It is important to use good negotiation skills that take into consideration each party’s concerns. For example a buyer who does not have much cash but has a higher lending ability than your selling price might agree to a $3000 higher selling price than you were asking if you would be willing to pay $3000 of his closing costs. In other words approach negotiations with focusing on top priorities for everyone, be flexible, and try not to let you emotions get in the way of good negotiations.

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