Selling a Home

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Negotiate Effectively

Where the rubber meets the road: offer, counter-offer, acceptance.

 This is the point every home seller and buyer anxiously anticipates. . .negotiating the offer and acceptance. Officially, the potential buyer makes an offer and the seller either accepts or declines the offer. A seller can make a counter-offer, however and the whole process starts over again. You’ll need a strong negotiating position—and nerves of steel—during this process.

Although it is the broker’s job to do the actual negotiating, the home owners should stay involved in the process. Here are some tips for negotiating with buyers, once they have made their first offer.

  • Find out as much as possible about the potential buyer’s situation. Knowing whether the buyer needs to buy a home quickly or is in a position to take plenty of time to negotiate will help you in deciding what type of negotiating stance to take. Knowing about the buyer’s family will help you decide which selling points to emphasize. And knowing whether the buyer needs to equip him or herself with all new appliances and furniture enables you to throw in deal-sweeteners—e.g., refrigerators, washer and dryers, and furnishings.
  • Reveal as little as possible about your own situation.

Overall, it is important to prevent the negotiations from becoming confrontational and thus killing a potential deal. The offers you receive will be 10 to 15% below your asking price. Do not be offended by this or by any low-balling techniques engaged in by buyers. Rather, show a willingness to make some concessions, and make counter-offers to try to bring the offer closer to your asking price. If you feel that an offer is unreasonable, however, there is no reason to entertain it.

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