Your house is for sale on the market and you received an offer to buy. Now, you must determine your response to the Buyer. Here are some helpful tips for negotiating the best deal on your home.
1) Understand the process: When you receive an offer, you can either accept it, reject it, or respond with a counter offer, which is a modification of the terms you’ve been presented with.
2) Decide what is most important to you: Decide in advance which terms of the sale are most important to you. Maybe you need a quick closing, or maybe you need a certain amount of money to pay off your existing mortgage. Allow yourself to be flexible on as many terms of the Offer to Purchase as you can. That way, you will have a higher probability of making the transaction.
3) Don’t let your emotions get in the way: Buying and selling homes is an emotional process but, simply put, it is a business transaction. If a buyer scoffs and says it’s because he needs to update the 1940s kitchen and bathroom, he won’t be offended. Everyone has different likes and dislikes when it comes to home style, color, flooring, kitchen and bathroom design, etc. If the buyer expresses interest in the home, listen carefully to how he arrived at the purchase price and don’t rush to discount it.
4) Review all the terms of the offer – Often sellers will focus on the purchase price and not carefully consider the other terms of the offer. Is the proposed closing date acceptable? Has a pre-approval letter been attached to the offer so you know the buyer has the ability to obtain a mortgage? Does the buyer ask the seller to pay closing costs? Do you want the appliances or the curtains? Review the amount of escrow the buyer intends to put down in escrow to determine if it is enough to bind them in the transaction.
After reviewing each facet of the purchase offer, determine which are acceptable, which can be renegotiated, and which are the deal breakers.
5) Think outside the box: Let’s say you received an offer that is unacceptable. Instead of rejecting it, think about how you can creatively craft the terms of the transaction so that they are acceptable to both parties. Ask questions that will help you determine what the buyer needs/wants most from the transaction. Maybe they need to close in a short period of time. In this case, you can stay firm on your price but offer a quick close. Perhaps they are moving from another state and don’t bring any appliances with them. Offering to include kitchen and laundry appliances can make all the difference. If the buyer was excited about your custom window coverings, consider including them in the sale, but also stick to one component of the transaction that’s important to you.
In conclusion, to successfully negotiate the sale of your home, listen carefully to your real estate agent, try to keep your emotions out of the way, carefully review all the terms of the Offer, and most of all, remain flexible! and creative!