Negotiating Secrets of a Real Estate Agent – Tips for Home Sellers
These 4 negotiating tips for home sellers will help take the emotion out of the home sale and reach an agreement with a buyer in less time. A good negotiation makes the rest of the escrow easier!
Negotiating Secret #1: Don’t Be Emotional
I know that’s easier said than done, but the party that remains calm throughout the negotiation has a serious advantage. Make sure you are that person!
Many sellers choose to be insulted by offers they feel are too low. Be insulted by the buyers who DIDN’T make an offer on your beautiful home, not the ones who did. No matter the price, they have paid you a compliment by writing an offer. Accept it for what it is and begin the negotiation.
Negotiating Secret #2: Don’t Judge the Buyer by their Offer
Home buyers have read lots of articles and received advice from many well-meaning friends, and by now they feel obligated to start low and see what they can get. Let them. Their next move will tell you whether they are for real, but for now, you don’t have enough to go on.
Your first counteroffer, however, will tell THEM whether YOU are for real. This is your most important move because your goal is to find out what the buyer does next. If you counter extremely high to make up for their extremely low offer, the most likely outcome is they walk away and the negotiation is finished before it starts.
Negotiating Secret #3: Make a Strategic Counteroffer
Remember, your goal here is to get the buyer to respond–hopefully with a signature of acceptance, but even if they counter again, you need to see what they are made of. Your counteroffer should be in the ballpark of the market value of your home. Forget where the buyer started. Forget where you started with your asking price. Stay focused on reaching an agreement in the neighborhood of true market value.
If they come up $2,000 you can tell them to have a nice life and you don’t have to reply again. If they show you a significant move toward a fair price, then you can play your next card and hopefully you reach an agreement. After two rounds, everyone starts to forget Secret #1 and gets emotional.
Negotiating Secret #4: Answer a Concession with a Concession
Now you are in escrow, and the buyer is still negotiating. Some of that is necessary, but if you give a concession, it’s a good idea to ask for something in return. It’s a little like a hostage negotiation at this point. They ask for a pizza, you get a hostage released. You get the idea. If they know you will always ask them for a return concession of some sort, it tends to discourage them from asking for more.
Stay focused on the goal, which is to sell your home, and remember these 4 negotiating secrets. A good real estate agent on your side can be your best friend.
If you enjoyed this, you might like “Negotiating Secrets for Home Buyers”!