The biggest problem that forces most sellers to sell their homes is how to hit the highest selling price. Yet most homeowners feel disadvantaged and ill-prepared to achieve this goal. Home appraisal is an imperfect science. Market factors can cause large fluctuations affecting prices. Also, the skills of the negotiator can also determine what your home is sold for.
However, negotiating effectively doesn't have to be as difficult or intimidating as you might expect. Like everything else, if you have a proven system to follow - and you know the cues and language - you can successfully turn the situation to your advantage.
4 Common Negotiating Mistakes Most Home Sellers Make
1. Talking too much on offer
The first and second principles of effective negotiation are a) to know what is legally required to be disclosed, and b) to speak no more than this to someone who does not fully represent your interests. It is very important for the salesperson to think through every point that he is going to make. . . before it is spoken. What you say can and will be used to the buyer's advantage, so don't say anything more than you have to. For example, if you review a listing in front of your agent and buyer's agent and mention your "final" price, better count on the buyer's agent to pass this information on to your buyer, and you will likely lose the opportunity to get a higher price than this. Remember that you don't need to say anything to the buyer's agent. They represent the buyer's needs, not yours. It is acceptable to ask them to leave before discussing the details of the offer with the agent.
2. Not taking the time to counter offer
Many sellers feel pressured to respond to the offer immediately. Remember that negotiating price is a critical issue and you have every right to take the time to respond effectively. As mentioned, you certainly have the right to ask for a private consultation with your agent and away from the buyer's agent. However, even more, you may also want your solicitor to advise you on the next steps. If you find yourself in this situation, ask for time to see your solicitor or fax us an offer. A bit of space and an objective and competent third party will surely lead to clearer thinking and more effective decision making.
Also Read: How To Get The Price You Want In Selling Your Home
3. Giving away too much
Many sellers feel they have to throw in home furnishings such as household appliances, lighting, draperies, etc. This is not the case. If these items are not detailed in your listing, you don't have to give them up at all if you don't want to. The holding of these positions late in the negotiation process is often an effective way of establishing a price that both sellers and buyers can live with. Used in this way, these items can become effective negotiating tools. If you deal them out too soon, you could lose potential leverage. And remember, there is nothing to prevent these items from entering the negotiation process at all. Unless they're detailed in your listing, you can treat them entirely outside of selling your home.
4. Misunderstanding of the "dual agency" issue
Dual agency exists when the bid made in your home is from the same real estate company where you listed your home - ie when both you and the buyer are represented by agents working at the same broker age. When there is a dual agency, both your agent and the buyer's agent are legally bound to tell each other whatever their customers say. Therefore, if you do not want your buyer to know what the lowest price you will accept, or that you will drop the equipment if pressure comes on (and you certainly do not want the buyer to know about these items) then you should not disclose this information to your agent - as they must he will then pass this information on to a buyer's agent who works for the same company. Your agent should make you aware of the implications of the dual agency when it arises so that you can take away a clear understanding of this important issue.
By being aware of these and other issues, and by consulting with an experienced real estate professional and attorney, your negotiating skills can be more effective in selling your home.
Have any further Pricing Your Home questions?
Parveen Tiwari can help you and if you have any questions in regards to real estate, then you must call Me today! at
647-494-0009
What Are You Waiting For?
CALL PARVEEN NOW!
3.png)
Parveen Tiwari
647-494-0009
Sales Representative
YOUR HOME SOLD GUARANTEED OR I’LL BUY IT!
*Certain Conditions Apply. Call for details.