6:44 PM, Apr 20, 2022
Selling a home or other piece of real estate can be tricky, but knowing how to successfully engage in negotiations can mean thousands of dollars to you. We'll show you tools to find an accurate value for your property and give some tips for negotiating the price of a home.
Understand the current climate of the real estate market. Is it a buyer’s market or a seller’s market? Sometimes there will be lots of houses for sale but only a few buyers, but at other times will be many buyers and less of a selection of properties for sale, which drives up the demand. Knowing the market conditions will help you determine a fair starting price for your property.
Understand your motivation. Some sellers are more motivated than others. You may fall into the motivated category if you lost your job and cannot afford the mortgage, are relocating for a job, are in danger of foreclosure, or have a new baby and not enough space. You may be a less motivated seller if you simply want to test the market, hope to buy a new house while mortgage rates are low, or want to purchase a different house while the market is favorable.
Price to sell. Before you list your house, check out the competition. What are other houses, similar to yours in type and location, going for? Although the internet is a good place to get a general idea, real estate agents have access to the most up-to-date real estate data available. The first 30 days on the market are the most important. It is better to get multiple offers on a reasonably-priced house than to risk getting no offers on a house that is priced too high. If a home has been on the market for several months, it begins to lose its appeal.
Listen to your real estate agent. Get the opinion of someone who works in the business, day in and day out, regarding the listing price of your house. A competent real estate agent will help you determine a good starting price. In addition, a real estate agent will explain how short sales and foreclosures in the area may affect negotiations.
Make some concessions. If you receive an offer that is too low and plan to counter, be willing to make some concessions to help ease the blow to the potential buyer. Are you willing to throw in the washer and dryer or the refrigerator? Which repairs will you complete to ensure the sale? If the buyer wants you out immediately, could you arrange for a quick move?