Understanding the Negotiation Process
The sale of almost every home goes through a negotiation process, with both the buyer and the seller wanting to make the best possible deal. As a seller, bear the following in mind when it comes to dealing with the negotiation process:
- If you are countering an offer, be reasonable with your counter offer. Understand that everyone in the offer process has a common goal and everyone wants to feel they’ve won.
- Appliances are not typically included in a listing even though they almost always stay in the home. Sellers can throw them into the sale and buyers will feel they’ve won.
- Do not bring emotions into the picture.
- You do not have to accept the first offer you get – though you should keep in mind that the first offer is often the best. Homes tend to sell for closer to asking price the less time they have been listed.
- Take all factors into consideration – price, closing dates, inclusions and strength of subject clauses. The negotiation process can involve a lot of what seems like game-playing, as this example from one of our Realtor friends.
An offer of $700,000 came in on a home she was representing. The home was listed at $850,000, and the seller was less than pleased (letting their emotions get in the way). Our Realtor friend held her own and remained objective. With the seller’s consent, she made a counter offer of $825,000 which was met with an even lower offer of $675,000 from the purchasing party. This got the seller rather worked up and ready to walk away.
Our Realtor friend explained to him that by carrying on with this back and forth process, while frustrating, allows the seller to move things back in the right direction and keep control by giving the buyer a final price. They ended up telling the buyer they were willing to go no lower than $800,000 and the deal was finalized at that amount.