Top 5 Home Selling Negotiation Strategies
Sometimes playing hardball can pay off. Selling your home might just be one of the biggest financial transactions that you make in your life. Whatever price you agree on with your buyer, as well as the price that you pay to real estate commissions, determines the amount of money you walk away with. To ensure you get top dollar for your home, you need to follow a few important negotiation strategies.
Make a Counteroffer At Your Listing Price
You should never simply accept a prospective buyer’s first bid at face value if it is below the price you initially asked for. A buyer with experience expects to face a bit of negotiation, meaning they will ask lower than your listing price even though they are willing to pay more.
Most sellers make counteroffers at this point with prices that are lower than their listing prices, as they are afraid to lose the sale. While you might easily sell the home with this strategy, you certainly won’t make top dollar.
Rather than dropping your price in the counteroffer, stick to your listing price. If a buyer really wants your home, they will continue to engage and give you the price you’re looking for, especially if your home is priced fairly, to begin with.
Yes, you might scare a buyer or two away with your unwillingness to negotiate, though you’ll also steer away low-ballers.
Reject Offers You Don’t Like
Rejecting a buyer’s offer instead of counteroffering is a gutsy move, though rejecting and asking them to make a new offer is a great tactic, especially if they are truly interested.
In doing so, you send the signal that you know the value of your property. An interested buyer will resubmit and make a higher offer. Plus, they may feel pressured to make a good offer quickly, as anyone could be standing by ready to make an offer better than theirs.
Create A Bidding War
Make an open house an integral part of your home selling process, though refuse to entertain buyer offers until post-open house. Any potential buyers might expect serious competition to arise in that time, meaning they will make higher offers. Once all the bidders have made offers, you can go back to the highest bidders and make any necessary counteroffers.
Give Buyers a Counteroffer Expiration Date
If you are interested in selling your home as quickly as possible, you might want to consider giving your counteroffers an expiration date. Doing so will compel a buyer to make a decision. Be careful not to make this deadline too short, as you could turn the buyer off. However, it is also important to note that the longer your home is on the market, the less desirable it is going to appear.
Pay Closing Costs
It’s pretty standard for sellers to pay closing costs, which typically amount to 3% of the overall purchase price. Some buyers simply can’t afford closing costs with moving expenses and down payments. The transaction might be far more likely to proceed if you offer to pay closing costs out the gate.
Of course, when all is said and done, the only way these negotiation tactics work is if you have a superior product to start. If a buyer isn’t excited about your property, you probably won’t be able to play hardball.