The stress of selling a home is enough to drive anyone crazy. Between negotiating a home sale to making counteroffers, you will be pulling your hair out before you know it. However, knowing how to negotiate price as a home seller can save you a lot of aggravation. That’s why knowing real estate negotiation tips for sellers can give you a leg up on the competition.
If you’re about to sell or buy a new home, here are some key factors that can help you out when negotiating a home sale, including how to negotiate when selling a house and real estate negotiation tips for sellers.
Counter Offer with Your List Price
When negotiating as a house seller, you probably won’t want to accept an initial bid from a potential buyer if it’s lower than your asking price. Buyers generally expect a back-and-forth negotiating a house price, so their first offer is frequently lower than your list price, but it may also be lower than what they’re prepared to pay.
Most sellers will counteroffer with a higher price but still less than their list price since they’re afraid of missing out on the sale. However, if you know how to counter offer on a house as a seller, you won’t have to take a lower offer.
Rather than lowering your price, respond by keeping to your stated purchase price. Someone interested in purchasing will stay engaged and come back with a higher bid. If you’ve set a fair market value for your home, countering at your list price suggests that you understand what it’s worth and that you know how to negotiate when selling a house for the money you deserve.
Turning Down Offers
If you’re brave enough, this real estate negotiation tips for sellers is a more aggressive approach than counter-offering at market price: Reject the purchase offer but do not respond. You next ask them to submit a new bid to keep them interested. Even if you haven’t yet turned them off, if they are genuinely interested and you haven’t bored them to death, they will be turned off.
This technique sends a stronger message that you know the property is worth what you’re asking for and how to negotiate a house offer. If they resubmit, they’ll have to make a higher bid unless they decide to play hardball and offer the same or even a lower amount.
You’re not bound to negotiate as a house seller when you don’t respond. Instead, you may get an offer with a specific buyer, and if an offer comes along that is more appealing, you may accept it.
Knowing that someone else may make a better offer at any time puts pressure on the buyer to submit a more competitive bid as quickly as possible if they want the property. This approach might be particularly beneficial if the property has been on the market for only a short time or an open house scheduled.
Create Some Competition
When you’re negotiating a home sale, one of your primary objectives is to get as many bids as possible. You can start a bidding battle and receive the highest offer for your house. This is one way how to negotiate price as a home seller.
To create competition among potential purchasers, wait to accept any bids until you’ve had a few to choose from. Then, if the property is on the market and a buyer comes knocking at your door, tell them that you have other interested parties and need their best offer.
When selling a property that isn’t in high demand or lacks a lot of time left on the market, this real estate negotiation tip for sellers works best. It can also help if you have an open house soon.
Put a Time Limit on the Counteroffer
Knowing how to negotiate as a house seller will give you a leg up. When the buyer submits a bid that you don’t want to accept, and you counter it. You’re now engaged in a negotiation with that person, and it’s considered bad form to take another buyer’s superior offer if one appears, though it isn’t against the law.
It is feasible to be engaged in numerous negotiations with several purchasers simultaneously. This is why knowing how to negotiate when selling a house is important. It is up to the seller’s discretion to tell potential buyers about this information. Disclosure may entice increased bids, but it might also scare away a buyer. The seller has the legal right to counter multiple bids at once, but they must include language informing all parties of the situation.
Another tip for how to negotiate as a house seller, consider putting a time limit on your counter offers to sell your property quickly. Make sure it’s not too short that the buyer becomes annoyed, but do consider cutting it shorter than the usual three-day period in your state’s regular real estate contract. This method pushes the buyer to choose, so you can either sign the contract or move on.
Pay Closing Costs
Buyers are now asking sellers to pay their closing costs, which can total around 3% of the purchase price. Buyers might be cash-strapped and may not close the transaction without help paying closing charges.
This is key when knowing how to negotiate a house offer as many purchasers do not have or do not want to put additional money down upfront to get into a house. They can frequently afford to borrow a little bit more. The deal is more likely to go through if you give them the cash they need for closing expenses.
When a buyer makes an offer and asks you to pay the closing charges, respond by stating your willingness to pay more than the asking price, even if it means exceeding your list price. Buyers frequently don’t realize that when they request the seller cover their closing costs, this effectively lowers the property’s market value.
If you know how to negotiate when selling a house, you can raise your asking price by enough to stay at or above your list price after covering the buyer’s closing expenses. If you’re selling for $200,000 and the buyer offers $190,000 with $6,000 toward closing, you’d counter with anything between $196,000 and $206,000 ($6,000 for closing fees included).
Negotiate A Better Sale
We hope the following has served as a solid guide to help you navigate the complexities of trying to negotiate selling your home. Knowing how to negotiate price as a home seller is one of the best real estate negotiation tips for sellers.
By following these tips for home selling, you can get your house sold faster and at the price you want.
Cash 4 Homes is a real estate solutions company based out of CORONA. We’re a family-owned business and focus on helping homeowners like you find solutions for your problem whether you’re going through a foreclosure, can’t sell your house, or just need to sell your house for any kind of reason. We buy houses in the following areas –