Selling your property is never easy. Just because it takes time, effort, and patience doesn’t mean you have to take the first offer to come along even if it’s well below your asking price. On the contrary, you’ll not only sell your property for the exact amount you’re looking for, if you play your cards right you can even get more than you bargained for.
Whether in a buyers’ market or sellers’ market, it’s possible to negotiate the best price for your property as someone selling real estate. You just need the right tips and guidance to handle the situation correctly. So, if you’re dealing with a frugal buyer, a buyer who loves to negotiate, or just a buyer looking to purchase your home for less, you can convince them to see things your way as long as you use the tips we’re going to share with you today.
Remember, buyers and sellers have different aims in mind. Buyers are looking to get the best deal possible to keep future mortgage payments low. Sellers are looking to make the most money for their home or investment. Obviously these two objectives are going to clash, so it’s up to you as the seller to do everything in your power to dominate the negotiations. We’ll help you get started right now with our best tips.
Pay for a Home Inspection before Putting Your House on the Market
Right off the bat you might be thinking “What? Why should I spend my own money for an inspection?” And this is where many homeowners make their first big mistake.
How can you theoretically sell your home for a specific price if you don’t know the potential problem areas your buyer will use to negotiate a lower amount? You’ll never get your asking price this way because unexpected problems always show up on home inspection reports. And potential buyers use this information as a means to get you to lower your asking price.
It makes sense though, right? The buyer comes into your home in good faith believing everything is in good working order. So they make an offer that you accept because they believe your house is in tip top shape.
Guess what? They pay an inspector to look over your home about a week after going into contract with you. During the inspection process, they find out a number of problem areas that need their immediate attention. After talking with a licensed contractor in the community, they’ve determined that the repairs will cost around $10,000.
Do you think the buyer is ready and willing to pay for these repairs? Or are they going to ask you to lower your asking price to cover some or all of the costs of these repairs?
By paying for an inspection first and learning about potential problem areas ahead of time, you can fix these issues before putting your house on the market. Even better, you can bring in your own contractors and have them fix problem areas for an affordable price instead of potentially paying outrageous fees for contractors that you’d never personally hire in a million years.
Do you now see the value in inspecting your home before putting it on the market? Having this information ahead of time to make the necessary repairs will prevent your buyer from later using this information as a haggling point. Plus, any repairs you make can also increase the value of your home so it’s a win-win no matter what way you look at it.
Healthy Competition Is Certainly a Good Thing during Price Negotiations
Now that you’ve repaired everything that showed up on the inspection report, it’s time to put your house on the market. Once on the market, the best thing possible is to get as many people visiting your home as you can. A great way to get a lot of people in your home at the same time is to have an open house.
Believe it or not, an open house creates competition for your property. It shows potential buyers that there are many people interested in purchasing your home. So instead of putting in a lowball offer, if they really like your home they are going to make a competitive offer because they want you to accept them instead of another interested buyer that they saw at the open house.
How does creating competition help you negotiate the best price as the seller? Simply put, by having an open house and receiving multiple offers at the same time, you can use this as leverage to convince the other buyers to increase their offer price.
As an example, let’s say you are selling your house for $250,000 and you have an open house and receive four offers the next day. One offer is for $220,000, a second offer is for $225,000, and the third and fourth offers are both for $250,000 and both of these families are really interested in purchasing your property.
Now, instead of accepting one of the two $250,000 offers, you can contact both of these potential buyers and tell them the situation. Let them know that if they are willing to increase their offer price enough that they’ll win the negotiation.
Maybe one of the buyers raises their offer price by $5000 and the second buyer raises their offer price by $10,000. Obviously as long as everything else checks out you’ll accept the $260,000 offer and because you created competition you ended up selling your home for more money than you originally expected.
Negotiating the best price for your property is possible if you’re willing to go the distance to make it happen. Remember, you just have to approach these negotiations with the best intentions in mind.
You aren’t attempting to rip off potential buyers by charging a high price. You are an ethical seller who believes in the golden rule.
So take time to fix up your home so it’s in immaculate condition prior to putting it on the market. Then have an open house to foster competition that you can pit against each other to get a higher offer price. This method works and it’s very effective, completely ethical, and it’s the perfect way to get the highest dollar value possible when selling real estate.