In any negotiation involving real estate, buyers and sellers have to come to a mutually beneficial agreement. Here are some strategies you can use to push for a better price as a seller:
1. Ethics are everything
An ethical negotiation will be more successful. In any deal you have to show the other party that you can be relied on. You can do that by being honest about the property and the price you ask for it. If you ask for more than it is worth, you risk losing the buyer’s respect and business.
2. Work for mutually beneficial agreements
Contrary to popular belief, you don’t have to dig in your heels during a negotiation. Consider the Golden Rule and come to an agreement that benefits both you and the buyer. That way you will increase chances of a sale.
3. Establish a BATNA
As a seller, establish a BATNA early in a negotiation. This stands for ‘best alternative to a negotiated agreement’ for a deal in which neither party comes to an agreement. It can be anything from deciding to rent out the place to renovating it and selling it for a better price later.
4. Don’t backtrack
If you have come to an agreement on something with the buyer, don’t renege on it. To prevent this consider each and every negotiation carefully before agreeing to it. Reneging will only sour the deal and make other negotiations difficult.
5. Consider the Buyer’s market
If you are selling in a buyer’s market, you are at a disadvantage but that doesn’t mean you should cave in either. The aim should be to get the best deal you can without making the buyer walk.
6. Consider the closing date
If you want to sell the property fast, you can negotiate for a faster deal. The date of closing will determine the monthly cash flow of the home since the buyer can then skip the coming month’s mortgage payment.
7. Consider home repairs beforehand
If a property needs repair work, buyers will try and negotiate for a reduced price because they will have to take care of those issues. However, if you don’t have the time or money to do this for yours, consider selling the house ‘as is’ and consider a buyer who will agree not to make any repairs.
8. Don’t get emotional
As a seller who wants the best price for your property, you cannot afford to get too attached to it. The business is pretty simple and it should be kept simple. Rationalize the offer being made, negotiate a price that you and seller… Click To Tweet
9. Don’t be afraid of a loss
As negotiations continue, you will get tunnel vision and try to get the best price. Since you will spend a lot of time and effort on the process, walking away empty handed will be a concern. However, sometimes this is the best option so it is better to figure out alternatives before entering a deal.
Before starting negotiations, research the buyer’s market and the price you can ask for the property to make a profit. This includes its assets, value and alternatives if the deal falls through.