7 Real Estate Negotiation Tips for Sellers
Proper negotiation is an art form. Some of us love the thrill but for others, it can be difficult to sort through all of the options and know where to go once we have an idea of what we're aiming for. Here are some common real estate negotiation tips so you can learn how to negotiate when selling real estate.
Real estate agents are there to buffer the negotiations so you can get the best deal possible.
Here are seven real estate negotiation tips to use when selling real estate.
#1: Know what you want
Do you need to be moved into another area by a specific date? Is there a price point you are shooting for? When selling real estate it’s important to know what matters most to you and what you can be flexible on. Real estate negotiation is about getting what you want and/or need, so the first step is knowing what that is.
There is a 98% chance that the buyer will want to do an inspection, so I suggest you do one too. A big piece of reducing stress when selling real estate is having a good idea of the items that the buyer may ask for during the inspection. This is the best time to discuss staging strategy and nail down a realistic timeline.
#3: Timeline everything
During the sale a buyer will submit an offer. There will likely be an expiration date on the offer. If the offer does not excite you then you may want to counter that offer. A solid real estate negotiation tip for sellers is to put an expiration date on your counteroffer and stick to it. This will compel the buyer to set aside small issues and make a quick decision.
#4: Use accurate data
Your real estate agent should be able to provide you with an area-specific current market analysis that shows average days on the market, price per sq ft, and the trend of the neighborhood. Creating healthy competition is an important part of getting the best possible price. Leveraging custom statistics scarcity is a great negotiation tool. An example of this is if there are 5 other houses exactly like yours on your block it may be wise to wait until the majority of them are pending. Knowing when the best time to sell a house and for how much will give you the best odds to get what you need out of the sale.
#5: Acknowledge emotions
but don't make decisions based on them. If you know what it is you need out of the sale then when you're in a highly stressful situation like selling real estate, it can be easy to let your emotions lead the way. You do not want to make an irrational investment decision. Lean on wise counsel when you're unsure of the right choice to make. A good real estate agent, just like a good friend, will help you stay focused on your goals.
#6: Have a Win/Win perspective
Buying and selling real estate can sometimes feel like going into battle and the problem with that is that in a battle there can only be one winner. In any real estate transaction, both the buyer and seller need to mutually benefit. Typically the seller and buyer both end up winning, but it's winning in different areas. The buyer wins the house, and the seller wins the equity. Another way for everyone to win is to make sure there is a home warranty included with the property. That way if something like the electrical panel or one of the appliances breaks the in first weeks of homeownership, the buyer isn't calling us asking for a refund, they're calling the warranty company to remedy the issue. Aiming for a win-win circumstance is the best perspective to have in any Real Estate Negotiation.
#7: Friction can be your ally
One of the most difficult parts of any real estate negotiation can be the waiting periods. If you're a seasoned seller then you probably know that waiting out the full timeline can build suspense for the buyer and bring big financial rewards. No matter how tempting it may be, avoid talking about your stresses with selling - even if you are under pressure to make a quick sale. If a buyer is aware of your time pressures it can weaken your position. I find that deep breathing and physical distractions are some of the best ways to build patience in high tension situations.
These are some common real estate negotiation tips when selling real estate. Understanding common real estate terms and how time works in real estate can be a big benefit. If you need more tools to sell real estate I’d suggest getting our free sellers checklist. If your goal is to get the highest return on your investment then find out what actually matters to buyers and appraisers.
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