One of the most challenging aspects that come along with selling your home is negotiating a sales price with potential buyers. You want to be able to get as much as possible out of your home while the buyer wants to get the best deal they can. It can be disheartening to realize that you will not be able to get the amount you had hoped for out of your home; however, you do not have to settle for an insanely low amount. In order to get a good price for your home you will need to learn some of the tricks to real estate negotiation. Here are a few tips and tricks that you can use when it comes time to start negotiating with potential buyers.
Do Not Choose a Real Estate Agent Based on Their Personality
While it is good to hire an agent that is friendly and understands your concerns, you really need to find an agent to represent you that will be determined to get you the amount that you deserve. Find an agent that has been in the business for several years and one who knows a thing or two when it comes to sales negotiation. You will also want to find an agent that will communicate plainly to you, no matter how good or bad the current state of the market is. These professionals will be able to help you sway your potential buyers into committing to the sale, and your asking price.
Ask for more than what you Actually Need
Once you have determined a good price range for your home, aim high in order to get the actual amount that you prefer. Buyers will always expect you to negotiate so if you ask for more money than you actually want, you will be able to lower your price and still get the amount that you need for your home. This allows you to have a little cushioning if the market is in a standstill so that you can lower your price in order to sell quickly.
Understand the Meaning of Forward Pricing
When you are pricing your home to sell, it can be easy to go with the same price that the last home in your neighborhood sold for, especially if the price seems reasonable. While it may seem like an easy route, this is not the best option. Instead you should use forward pricing. This means that if the homes in your area are appreciating by 10% on an annual basis, and the last similar home in your area sold for $300,000 six months ago, the current forward price for your home should be around $351,000 in order to keep up with the times.
Make a Statement
If you have your home priced to sell at $300,000 and you receive an offer for $200,000, even if the offer seems reasonable to you, do not take it right away. Let the buyer know that you are willing to negotiate, but you are not desperate to sell by offering them a price of $290,000 (and go from there). This will provoke the buyer to come back with a more serious offer.
Negotiating with buyers is not as confusing as it seems once you learn about the tricks of the trade. It is a simple bartering process that allows you to get as much as you possibly can out of your home. Do not settle for a less-than reasonable price even if you are in a hurry to sell. Don’t be afraid to let the buyers know where you stand. Many times the first offer from a buyer will be a lowball offer. This is just a way for them to test the waters and see how low you will go on your price. Come back with a higher offer that is slightly lower than your asking price so that they will have a better idea of what you have in mind.