There are so many things that need to be done when selling a house that many people forget about the need to negotiate a home sale. The negotiation stage of selling your house might be the most important because it will ultimately determine how much you will be able to sell your home for. There are many different approaches that people take when it comes to negotiations, and choosing the right tactic for you can simplify a complicated negotiation.
- Have your home appraised. This is an essential step that will tell you how much your house is worth. It’s empowering when potential buyers try to lowball bids.
- Know three things: what comparables in your neighborhood are selling for, how much you owe on your home, and how much you would like to realistically make on your house.
- Decide on a bottom line and stick with it. Potential buyers can be extremely cheap. When you watch any of the real estate shows out there today, you can see that many potential buyers are almost insulting. Don’t let them upset you. When you have your bottom line at the top of your mind, and are determined to stand firm, you can easily discourage insulting offers.
- Decide what allowances you will and will not make. In most cases, allowances are put into escrow for the purchaser. If you pay for closing costs, your net profit on your home will go down. While it’s not exactly money out of your pocket up front, it is less that will hit your bank account.
- Make sure that all the problems are fixed so a home inspection will turn up clean. It will save you a tremendous amount of money, and can prevent buyers from trying to get more repairs out of you.
When a potential buyer makes you an offer, know that they are not making their best offer. They are simply starting with a number. Counter with another number that is closer to the amount you want the house to sell for. You can continue the back and forth game, or you can decide how badly you want to sell your home. Keep in mind that playing the game for too long can become tiresome to buyers, and they may choose to walk away.
Remember: when a buyer writes an offer to you for your home, it only means that the hard work is just beginning. Don’t forget to make sure that any potential buyer is pre-approved so your deal won’t fall through when you’re ready to sell. Then, once you know the buyer has the financial backing, go ahead and start to negotiate a home sale.