Negotiating your Home Selling Price
Most people prefer to avoid confrontation. This includes negotiating the price of their home. It sends a chill up the spine because you don’t want to make a false move that could result in a failed deal. Don’t start sweating yet. Here are some tips to help you negotiate the selling price of your home.
1. Use a realtor. Realtors know when a buyer is trying to lowball you or taking a hard line. They can look at the offers and tell you which ones to throw out and which ones to look at seriously. Even if the offer is lower than you expected, they can suggest ways to bring up the price. Even for sale by owner properties can use the expertise of a realtor for the negotiation phase of the selling process.
2. Don’t be afraid to make a counter-offer. Most buyers expect that. It is rare that a seller will accept the first offer on the table without making any amendments to the deal. A counter-offer can be made to include certain perks, or as a contingency upon you finding a new place to live. The financing can fall through on the buyer’s end and you don’t want to be tied up if a better deal comes along.
3. Offer to pay some of the closing costs for the buyer. If his offer comes in a little short, paying some of the upfront costs can get him to agree to the price you want. Don’t give up. There is always a way to make a deal sweeter for the buyer.
4. Accept offers from pre-qualified buyers. This means that the buyer has already qualified for a loan of a certain dollar amount and has the funds to back up their offer. This is especially important for people selling their homes themselves. No one wants to work hard on a deal only to find out that the buyer can’t meet the agreed upon asking price.
5. Hire a home inspector and pest control to do the required inspections. Buyers may want to deduct the cost of hiring these professionals from the final price. Beat them to the punch by having qualified people do the work. It is required that sellers make certain disclosures to the buyer. Shouldering the added cost of the inspections and supplying the reports can also get you closer to your asking price. If you live in a condominium, pay to get a copy of the rules and regulations for a potential buyer to review so they don’t have to pay for their own copy.
6. Ask for an earnest money deposit. The deposit will show the intentions of the other party. If they are serious about buying your home, then they will give you the good faith money.
Negotiations are not our favorite thing to do but it is a part of the selling process. Start by doing research on the housing market. Increasing your knowledge also increases your confidence to negotiate a fair selling price for your home.
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