The moment your realtor calls to tell you someone made an offer on your home, you’ll want to listen up! You’ve hired them to help you get top dollar for your house, so let them help you. They’ve been through countless negotiations and will be able to recognize a fair price for your property.
Receiving your first offer is exciting, but you may not want to jump on it right away. It’s just the beginning of a long process, and it’s possible that other offers will come in.
When you are in a seller’s market, prospective buyers are less likely to make unrealistic, lowball offers. But, if you are selling during a seller’s market, you might hold the cards to get even more than the initial offer.
More helpful home buying and selling tips:
- Do You Need a Realtor When Selling Your Home?
- Expert Tips to Help You Sell Your House Fast
- How to Price Your House for Sale
NEGOTIATING TIPS FOR HOME SELLERS
Price your home fairly
While you may have a price you want to get for your house, that may not be what it worth. Consult with a realtor or do your homework to find other properties that recently sold in your area and price your house accordingly.
Know your bottom line
All sellers need to know the least amount for which they can sell their house, so they get what they need out of it. Knowing your bottom selling price ensures that you have taken everything into consideration before the buyer makes an offer.
Review the inspection
Anything that is flagged as a problem during inspection can act in the buyer’s favor. If issues with the roof, flooring, foundation or heating and cooling systems arise, you’ll probably have to accommodate the buyer. However, it’s not usually necessary to lower the price for very minor or aesthetic concerns. Fix what is necessary, but keep your price where it is. Remember, you probably wouldn’t have an offer if they weren’t serious about buying.
Be prepared to compromise on small issues, even if they’re aggravating, if a possible buyer seems serious. Ultimately, what matters is the profit you’ll see from your sale, not getting the best end of every situation.
Don’t be emotional
Your house is a home. It might be the house you grew up in or where you brought your kids home from the hospital. You are emotionally tied to the house. But, once you list if it for sale, you have to sever those ties. When you get emotional about offers and feedback, you may become defensive and end up getting less than you need from the sale of your property.
You want to get top dollar for your house, but if you aren’t willing to negotiate and take a little less than your asking price, you may end up missing out on a sale entirely. Weigh the difference in the lower price and how much more it costs you from month to month in mortgage, utilities and other household operating expenses.
Consider the first offer
When you get ready to walk into home negotiations, sometimes, the first offer will be the best one. It can also tell you quite a bit about how you have priced your home. If extremely low, it might be that it is overpriced. But, don’t pass on the first offer because you think another, better one may come along. It may not.
Review the terms carefully
One of the most powerful negotiating tools you have is in the terms. If the buyer adds contingency and other clauses in the contract, you can sometimes swing a higher price by agreeing to them. Don’t just toss out all offers, read those terms carefully and make them work to your advantage.
Make a counteroffer
When you get the first offer, you don’t have to accept or deny it right away. Visit with your real estate agent and consider making a counteroffer. Your first offer is just a starting point but does not mean that is where you will land. It just gets the home negotiating process started.