Taking Offers on Your Home: the Art of Negotiation
Selling your home can be emotional and the process, including the documentation, is often complex. Sellers tend to believe their home is worth more than it might actually fetch, so they tend to have high expectations when setting a listing price and often want to play hardball during negotiations.
Selling a home can be tricky, however, and negotiating the right deal is often more of an art than a science. The best approach is to be prepared before negotiations start, stay aware of market conditions and make full use of your listing agent and other resources. Most of all, be flexible - things can change rapidly during this process, so you'll need to be ready to act quickly when the time comes.
A great real estate agent really can earn their commission dollars by helping you list your home at the right price to attract the most interest and offers. They can also skillfully negotiate the inevitable counter offer process.
Market conditions really drive who has leverage and how much leverage. Many people have bought during heated markets, paying the seller a premium above the asking price and accepting the property as-is. I hope you are that lucky when you sell your place.
More typically, the new buyer will try to come back with an offer below the asking price and seek concessions for any problems (like an old roof) that they might perceive.
There is an old saying, “that your first offer is often your best.” Many stories can be told about people who listed their property too high and it languished on the market only to be sold at a greatly reduced price. Getting it right first can be a big relief.
Everyone’s personal situation is different; both buyer and seller have different motivations. It can be helpful to know the other side’s motivation and be truthful about your own in order to guide the sale to a successful closing.
Again, a great local area real estate agent who has experienced many situations is a valuable asset and usually can bridge the negotiation process. Many “for sale by owner” deals break apart because there is no intermediary to help both sides compromise.