10 Negotiation Tactics for Sellers

Any negotiation involving real estate has a bit of back and forth. A home seller and buyer each have a goal in mind: to get the best deal possible. Of course, since they’re on opposite sides of the transaction, this can be slightly difficult. In order to come to a mutually beneficial agreement, they’ll have to negotiate.

Below are some negotiation strategies to get the most you can for your home and get it off the market quickly.

1. Start with a Justified Asking Price

Set a fair asking price, one that hews closely to the Comparative Market Analysis (CMA).

It may feel clever to inflate your price to account for future negotiations, but you could end up reducing your pool of potential buyers. Inflated prices can put people off. They might see it as a red flag that you'll be deceptive in negotiations.

2. Tailor Your Strategy for the Current Market

If you are selling in a buyer's market, the aim should be to get the best deal you can without making the buyer walk. This doesn't mean you have to cave into all the buyer's demands, but you should keep in mind that you are at a tactical disadvantage.

If your property is going to be harder to sell, you might consider aiming to list it in a seller's market when buyers have fewer options to choose from. A seller's market often happens when the housing inventory is low.

3. Decide How You'll Home Repairs Beforehand

If your property needs repair work, you have three choices. The best tactic will depend on the cost of the necessary repairs, how quickly you're trying to sell, and the state of the local housing market.

You can choose to sell the house without making repairs. This will save you time and trouble, but you should be prepared to take a reduced price during negotiations.

You can choose to put the house on the market without repairs, see who bites, and be prepared to arrange for the work to be done if a seller demands it. If you're in a seller's market, you might get away without having to make the repairs or reduce the price.

Finally, you can make the repairs ahead of time to remove that point of leverage. This may be wise if you're in a buyer's market because leaving things unrepaired may cause you to overpay – for a contractor's priority or for a buyer's 'trouble.'

4. Consider Leverage & Concessions Ahead of Time

Potential repairs are one type of concession that you can control in real estate negotiations, but there are plenty of others. For a home seller, these items are an important part of planning a BATNA (Best Alternative to a Negotiated Agreement) because these are the "alternatives" if you and the buyer fail to find a price that makes you both happy.

You'll want to group these concessions by degrees of urgency – things that you wouldn't mind throwing in, things that you're willing to concede if it keeps the buyer from walking away, and things you're willing to do if you get desperate to close a deal. You should also know ahead of time what concessions would be absolute dealbreakers.

5. Don't Neglect Staging and Marketing

Regardless of your property's features, there are steps you can take to increase its appeal to potential buyers. This can make a huge difference in how many people you attract, as well as the final selling price.

You should consider the best marketing tactics like professional photography, virtual tours, and social media advertising.

Before any of that, you should consider staging your home to the best effect. It's easier than ever these days with new technology like virtual staging.

6.  Aim For a Mutually Beneficial Agreement

When negotiations start, your goal should be an agreement that benefits both you and the buyer. You'll increase your chances of a sale.

Contrary to popular belief, you don't have to dig your heels in. Don't think of the buyer as an enemy. Think of them as a potential partner with a common goal: the successful transfer of property.

7.  Keep Emotion Out of It

Selling property, especially a home, is an emotional process. You're attached to the property, not just sentimentally, but as an investment you'd like to recoup.

It's natural to struggle with emotion, but it's best to stay as calm and objective as possible during negotiations. You should think through your priorities, your goals, and what concessions are "affordable" ahead of time while you're still thinking clearly and strategically. The considerations we outlined above should help ground your decisions during the negotiation.

8.  Don't Get Tunnel Vision

It's easy to get so focused on the minutiae of the negotiation that you lose sight of the big picture. It's easy to get focused on "winning."

Making decisions about what's fair and important before negotiations begin can help you keep things in perspective. It's also a good idea to repeatedly ask yourself during negotiations: How much does this particular point matter? How much money is it worth? Where is it on the scale of "no big deal" to "total dealbreaker"?

9.  Don’t Backtrack

If you have come to an agreement on something with the buyer, don’t renege on it. When you stick to your initial terms, you maintain control over the negotiation process. Backtracking can make you seem indecisive, which can lead to the buyer taking advantage of your perceived weakness. To prevent this, consider each and every negotiation carefully before agreeing to it. Reneging will only sour the deal and make other negotiations difficult.

10.  Choose the Right Real Estate Agent

A skilled real estate agent can be your strongest ally in negotiation. They bring a wealth of knowledge and expertise to the table and are committed to securing the best deal for you since they’ll be getting a commission from the sale. Make sure to hire someone who is properly educated, licensed, and has enough experience to help you through the negotiating process and help you on your selling journey.

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