Negotiation is crucial to all real estate deals. Some buyers accept the seller’s terms and approve the sale, which leads to closing. But this doesn’t happen all the time. It’s uncommon for sellers to sell their properties at the listed price. Buyers usually make a counteroffer that offers a lower price or other terms to the sale. For that reason, if you’re a real estate seller, you must get yourself prepared with the fundamental real estate negotiation tactics.
It’s impossible to become a professional negotiator overnight. Nevertheless, you can consider some of the following tips below to negotiate for real estate properties like a pro.
Work With A Real Estate Agent
Collaborating with a real estate agent who has strong negotiation skills is one of the practical strategies you should keep in mind. Some real estate sellers usually have emotional attachments to their properties, which manifests through hardball strategies. These sellers might not even be open to negotiating prices at all.
That’s why you should work with real estate agents and allow them in the negotiation to hold any feeling of attachment to your house. This tactic is crucial because your aim should be getting a favorable outcome from the deal, and emotions can sometimes cloud your judgment.
Also, as you work with a real estate agent, make sure everything you’ve agreed with your agent is fully transparent. For instance, you must understand how you reach the commission agreement. To do that, you can read these details to learn about real estate agent commission fees.
Get A Home Inspection
Getting your home inspected is another critical real estate negotiation tactic. A superb home inspection can put you way ahead of the real estate buyers. It can uncover heap sights about your property that you could have known earlier. It may include the state of key systems, the condition of your home’s structure, and possible safety hazards. Fortunately, an inspection will make it easier for you to repair some of these issues. When you come complete with critical information about your house, you won’t be surprised when an intelligent buyer points out a few property flaws.
Furthermore, taking the time to conduct a home inspection shows the buyers that you’re being transparent. In that case, they’ll have better convenience in purchasing your house. Plus, on your part, getting a home inspection gives you better peace of mind, given that there won’t be any last moment surprises to delay the sale.
Suggest To Pay Closing Costs
Paying the closing costs is another real estate negotiation tactic that you can use. Closing costs are charges that go to the lender in return for loan servicing. These costs may include inspection, credit check, and appraisal fees. And some of these closing costs are often between 3% to 6% of the property’s selling price.
However, keep in mind that some buyers may owe money from other expenses, such as renovation costs, down payment, and moving expenses. For that reason, they often can’t afford to accomplish the deal unless you help them with the closing costs.
Likewise, some buyers request the home sellers to pay the closing costs when making a deal on the house. And usually, agreeing to a buyer’s request to pay for closing costs will lead to a considerably faster sale. But to ensure that you maintain your margins, you can counter by raising your selling price.
Counter At Your Selling Price
Accepting the buyer’s initial bid on your property, which happens to be lower than your selling price, is the last thing you want to do. Note that buyers often anticipate a negotiation, so their first offer will usually be lower than your asking price, and it may even be lower than what they’re willing to pay.
In that situation, most sellers make a counteroffer with a higher price yet a bit below their selling price due to the fear of missing the potential sale. In essence, they aim to appear flexible and open to negotiation to close the deal. While this tactic works from the perspective of getting the house sold, it’s not the best method to get your desired worth.
Therefore, instead of lowering your price, counter by following your listed buying price. The reason being is that a buyer who wants to purchase will remain interested to return to you with a higher offer.
In a real estate negotiation, sellers with excellent negotiation skills can increase their profit margins from a deal. That’s why after setting everything up, and you think you’re ready to start selling your home and discussing prices with the potential buyers, consider using the listed negotiation tips above at the negotiating table.