Hopefully you’ve done your research and chosen a top quality agent, so you’ll be going into the negotiation phase of selling your home with an expert. Your agent will use his or her excellent negotiating skills and detailed knowledge of the current market, local area and particular features of your home to drive up your sale price and get you the best result. Given you may have never sold a property before, or only ever do this once every 10 years, it’s great to have that negotiating expert in your corner.
If you’re going to auction, your agent may bring pre-auction offers to you. Of course, you can accept pre-auction offers anytime before auction day, but as your agent will most likely advise, an early offer really has to be outstanding to convince you to accept. Otherwise, you may as well see what open market competition will do for your sale price at auction. If your home does not reach your reserve price at market, then your agent will then negotiate with the top bidders, and any other interested buyers in the same way as private sale negotiations below.
PRIVATE SALE NEGOTIATIONS
If you’re selling your property privately with a fixed price, your agent will bring all buyer offers to you for consideration. Here are 5 top negotiating tips and strategies to help you sift through the offers, and get to the price you really want!
Get it in writing…Buyers may give your agent a verbal offer, but as they say, it’s not worth the paper it’s written on. So if a buyer is serious, get them to commit to their offer in writing, and sign some form of agreement with a deposit. That way you can separate the talk from the walk.
First in, best considered…It may be tempting to dismiss the first offer you get out of hand, because it’s not exactly the price you’re looking for. But this could be the most interested buyer in your home, as they’ve already been shopping around and know your home is “the one”. Good offers usually do come early when your property is fresh on the market, so be sure to consider these first offers carefully with your agent and negotiate seriously, because you may not get that price again.
Everything’s negotiable…It’s not just about the sale price either. You may be able to get closer to the price you want by being flexible on other terms. Does the buyer desperately need a longer settlement, prefer 5% deposit, or want your fabulous outdoor furniture thrown in as part of the sale? A bit of give and take on your side may get you the price you want, with terms that suit both parties.
Meet in the middle…The simplest negotiating strategy of all, but often it works. Being prepared to compromise on the price and/or terms and meet somewhere in between could be a win-win for both you and the buyer. It’s easy to get caught up in the emotion of it and refuse to budge, but by giving a little on your side, you could encourage the buyer to move closer to your dream price, instead of walking away.
Know when to move on…If a sale does fall through and a buyer walks away for whatever reason, it can be tough to let go of that price as a seller. Perhaps they couldn’t get a loan, sell their own home, or they saw something they liked better? Whatever the reason, it was not meant to be, so discuss the options with your agent, move on and focus on the sale that will go through this time.