Negotiating for a home sale can be stressful, especially when you're trying to sell a property that needs repairs. Here are real estate negotiation tips for sellers to help you negotiate successfully.
- How to get out of the hole you're in.
If you find yourself in a negotiation where you feel you're losing ground, try these tactics to get out of the situation. First, ask for what you need. This will give you an opportunity to see whether the other party has any interest in making a deal. Second, make sure you understand the other side's position. Third, consider offering concessions. Finally, if you still aren't getting anywhere, take a break.
- Know what you want.
It's important to know exactly what you want before entering into a negotiation. Otherwise, you might end up with something you didn't intend. For example, if you want $500,000 for your home, then you should negotiate for that number. Don't say, "I'll sell my house for $1,000,000." Instead, say, "I'm willing to accept $500,000 for my house."
- Be prepared to walk away from the deal.
If you're not happy with the offer, then you need to walk away. This means that you shouldn't make any counter offers. If you do, then you will lose leverage. Also, don't agree to anything until you have received an official written offer.
- Don't give up too soon.
It's tempting to think that you should just accept whatever the buyer says because he has offered more than what you wanted. However, this isn't true. In fact, you might end up losing money by accepting the first offer. Instead, try to negotiate as much as possible. Remember, the seller wants to sell his home quickly, so he'll probably be willing to pay more than he would otherwise.
- Ask for more money than you think you deserve.
If you ask for too little, you won't get anything. On the other hand, asking for too much will likely make the buyer walk away. So, how much should you ask for? Start with the listing price plus any upgrades you've made. Then add 5% to cover closing costs. Finally, add another 3% to account for contingencies (things that can go wrong). This gives you an idea of what you should expect to receive when you list your home.
Learn the art of real estate negotiation!