|
Negotiation is an intriguing game in which each player uses a different rule book. To negotiate a successful real estate transaction requires understanding basic negotiation methods, knowing the motivation of the other party, and adapting to their style. You can strengthen your position by following these four negotiation rules.
1. Get your home into top condition. If your home is on the market with obvious defects such as paint, repairs, cleanup, carpets and landscaping, you can be certain prospective buyers will either not look at it, or if they do and they make an offer, it will be low.
Examine your home carefully. If you spot anything that a buyer can criticize, your negotiating position is weakened. For example, if your home has peeling paint, you can be sure buyers will lower their offer by much more than a paint job would cost you. To negotiate from a strong position, always get your house painted inside and out before putting it on the market.
2. Know the market value of your home. After getting your home in the best possible condition, improve your negotiating position by determining the true market value of your home. One way is to hire a professional appraiser to evaluate your home and provide an expert opinion of the market value. The cost will be several hundred dollars for a complete appraisal, depending on the size of your home and the difficulty of appraising it. Choose an appraiser who is properly licensed and is experienced in your area.
Another way to determine the market value of your home is to interview several real estate agents about listing it for sale. As part of their listing presentation, each agent will prepare a written "comparative market analysis." This report will show the recent sales prices of similar nearby homes as well as the list prices of other homes currently on the market. By comparing the reports submitted by the agents, and by checking the comparables they used, you will be able to determine your home's market value.
3. Relax and be patient. Another way of stating this rule is, "The one who cares the least, wins." For example, if you must sell your home quickly because of a job transfer or to avoid a pending foreclosure, buyers will take advantage of your situation. Give yourself plenty of time by putting your home on the market early. Sellers who get the top prices for their residences are those who have their homes in excellent condition and who do not have to sell by any deadline.
They can afford the "I don't care" attitude, so they only have to sell if they get the price and terms they really want. A good real estate agent will support you when you take this position even if it takes a little longer to sell your home.
4. Make the home buyers feel that they got a good deal. You home is in great condition, and you have it listed for sale at the right price. Now you get an offer. To make the buyers feel good about buying your home, negotiate on some minor point, such as the move-in date, the amount of the deposit or the personal property to be included in the sales price. The buyers will feel terrible if you accept their purchase offer without any negotiation.
If the buyer feels good about the transaction, the chances of a successful, on-time closing are much greater than if the buyer feels he is overpaying for the home. Remember, from the buyer's viewpoint, there is no worse feeling than having the first offer accepted without any changes. Then the buyer knows the property probably could have been purchased for less.
Remember these special strategies when you are a home seller. By understanding these rules, you will enjoy an advantage in dealing with buyers. |