Home sellers expect to negotiate, but it can be tricky to negotiate a great price. Don’t make an outrageously low or high offer, as it could feel like a waste of the seller’s time. As a general rule, offer ten percent below the asking price. In a buyer’s market, you can often negotiate lower than the asking price, while in a sellers’ market, you must be more aggressive.
Comparable Homes Can Help You Negotiate
The number of comparable homes in your neighborhood can be a valuable asset to you when negotiating a price for your home. You can use this data to gauge the asking price. If you are making an offer that is much higher than the asking price, a comparison between the two homes will help you decide how much to offer. You can also use these comps to negotiate with the seller. Once you have some comparable homes to work with, you can talk to your Flat Fee Realtor to determine the best price for your home.
While you are evaluating a home’s asking price, don’t use homes sold six months ago as a reference. Use homes that recently sold in your neighborhood, within the same price range as yours. Recent sales will reflect the market’s conditions and help you get a fair price. Make sure to use similar homes within the same geographic area. This will ensure that you get a more accurate idea of what your home is worth.
Avoiding Making Counteroffers
When negotiating the best price for home, you should avoid making counteroffers with any term that isn’t truly a deal breaker. Most sellers don’t offer many items for free, so review all of them thoroughly and ask any questions you have. If the seller rejects your offer, he may make a counteroffer. A counteroffer is a rejection of your original proposal, and becomes binding on both parties.
During a seller’s market, sellers are often afraid to lose the sale if they don’t accept the buyer’s counteroffer. They often want to appear flexible and willing to negotiate, but this strategy often doesn’t produce the best price. A counteroffer is an effective strategy for selling a home, but it doesn’t always produce top dollar.
If a seller receives a counter offer, he has the option of accepting it while the buyer decides to reject it. If another buyer offers a better price, the seller will accept the counteroffer and remove the first buyer from the situation. However, the seller may also counter multiple offers, each of which can have slightly different terms.
Taking Control of Your Emotions
Managing your emotions after getting an offer for your home is essential to reaching a successful deal. While selling your home can be very emotional, you must approach it as a business transaction. The buyer may comment on something in your home that upsets him, but you need to take it in stride. A buyer may be trying to get to the next point without making a commitment, and you should understand that.
It’s not a good idea to insult the buyer during the negotiation process. The seller may have a sentimental attachment to the home, and may be unwilling to negotiate with a buyer who makes them feel bad. Also, a seller may be holding out for spite. If you’re unprepared, it may seem like you’re a second-rate buyer who doesn’t know what he’s doing. Don’t be apathetic and show the buyer that you’ve done your research and researched homes in the neighborhood.
Understand the Motivations of the Other Party
When negotiating, it’s crucial to understand the other party’s interests and pressures. This includes their underlying needs, goals, and hopes. Understanding the other party’s motivations will make it easier to craft a deal that meets all of your needs and theirs. It will also help you avoid making mistakes that could damage your bargaining position.
Avoid Dragging Out Negotiations too Long
While it can be tempting to drag out negotiations for as long as possible, this can backfire in more ways than one. It is important to have a strategy in place before entering a negotiation, and avoid the common pitfalls of price padding. While bidding wars are an exciting prospect, it is best to stick to your original price range and avoid price gouging. It can also lead to burnout, as the other party loses interest in the house.