We all know that when selling a home, most times there will be a negotiation process. It’s like a tennis match, offer, counter offer, counter, counter offer, and so on.
The buffer between buyers and sellers are the real estate agents, and this can be a disadvantage in a few ways. For example, say the buyers liked a particular piece of furniture in your house, but you didn’t know it.
On top of that the furniture they like is something you’re not that fond of. In a case like this you would have a great barging chip to negotiate with, but unless your Realtor tells you have no idea – case closed.
First Offers Are Rarely Final Offers
After a few offers fly back and forth, there comes a time when one of the parties include in their offer “last and final offer”. But this is only after several offers have been exchanged.
As a seller, you can expect an initial offer to come in below list price, with conditions. The buyer expects to be handed a counter offer at which time they can accept it or counter back.
When you’re negotiating offers you must learn to read between the lines. As mentioned earlier, it really helps if you have a Realtor who can extract information from the buyers Realtor on what motivations the buyer has.
Things such as how well do they like the house? Would a small repair rebate make them happy? As mentioned, there might be furniture or something else that you can throw in the deal to make them close the deal.
Are the buyers strong?
This can be a factor in the negotiating process as far as you’re concerned, because a strong buyer won’t fall out of escrow. It has to be the most frustrating thing to go through weeks of negotiations, and then have the deal fall out of escrow because the buyer was weak. If you have a strong buyer this may influence how far you want to push the negotiations.
When selling your home, of course the price is negotiable. You can also negotiate closing costs, repair allowances, replacement costs, almost anything expect paying a buyers down payment is on the table. So, don’t be surprised when you see a bunch of stuff on the offers.
If the offer is so low and the list of allowances is so outlandish it’s ridiculous, then you don’t have to counter offer. It’s probably not a serious buyer and it’s not worth your time to negotiate.
If you have multiple offers on your home, rejoice. You’re probably in the driver’s seat and you won’t have to give a lot in the negotiations. The real estate market itself will be an indication of who does have the edge in negotiations. But still, knowing how motivated a buyer is and how much they like your house will greatly influence what you’re willing to give.
A real estate agent, who can get this kind of information for you, is extremely valuable.