Selling a home can be stressful, especially if you’re relying on making enough off your home to be able to buy the new home you really want. That being said, it’s important that you get all you can out of the negotiating process. Not knowing how to negotiate skillfully can leave you getting less for your home than you should, or even worse, leave your home sitting on the market for months.
Here are some tips to help you during the negotiation process:
1. Don’t sell it on your own.
Some people opt to go the “For Sale by Owner” route to try and save money on real estate agent fees. Bad idea. There are tons of really good reasons to make sure you have a REALTOR® doing the hard work for you. Here is what you can expect:
- They handle all the paperwork for you. All you have to do is answer a few questions and they prepare everything for you. No need for you to be a real estate contract specialist. Just read it over and sign on the dotted line—and avoid costly contractual mistakes.
- They can get you started at the right price point. Typically, people aren’t sure how to price their home. The problem is that incorrectly pricing your home can directly result in you losing money.
- They can recommend the right repairs. A quality real estate agent will walk in your home and be able to point out little things you can do to spruce things up, allowing you to get the most out of your investment.
But above all else, a REALTOR® gives you power during negotiations. They understand how the whole back-and-forth negotiation works and can advise you of what to counter offer based on their experience. They can also act as your mouthpiece, allowing you to participate actively without actually talking to the buyer. It’s always easier to have someone else say the hard things…
2. Don’t overprice your house but ensure you have some “wiggle” room.
The first rule of selling your home is to make sure it is priced right for the market. Your REALTOR® will put together a comparative market analysis of what has sold in similar neighborhoods. That said, when it comes time to set your initial selling price, make sure you give yourself some negotiating room. Some people make the mistake of thinking they should list their home at the rock bottom price to sell it quickly. That leaves you with no “wiggle” room and might create a situation where the buyer feels you are not interested in working with them.
3. Don’t get offended. Just start the process.
It’s not uncommon for people to come in and low-ball you. Say you’re asking $400,000 for your home and you get an offer for $300,000. The natural response is to tell them to take a hike, if you respond at all. Don’t take it personal! The person is probably just trying to feel you out. Go ahead and make a counter at a little below your asking price. This lets them know you’re willing to negotiate, but you aren’t playing any games. If they like the home, they’ll come back with a more realistic offer. If they’re just wasting your time, they’ll go away.
Of course, there are many tactics you can employ during the negotiation phase. Speak to your REALTOR® at Coastal Outer Banks Realty and ask how you can make your negotiations more successful. Visit www.coastalouterbanks.com today for more information.