Negotiation Strategies For Offers
Before you start receiving offers, it's smart for you to have a discussion with your agent about negotiation strategies. This discussion helps you decide what is most important to your family and allows you to make tough decisions.
You can accept, reject, counter, or let an offer expire by weighing it. Your agent will explain all options if there are multiple offers. Here are some strategies you can use to be prepared.
Counter With The List Price:
By denying lower offers, you are indicating that your home is worthy of the money. This could make you appear rigid, which can put off buyers. However, interested buyers will stay. If you don't have many offers on your home, this might be risky. However, if there are multiple offers and lots of showings, you may be able to make a deal.
To send a strong message, you could reject a lower offer and invite the counteroffer to submit a new offer. This might be risky if you have been selling your house for a while. However, your agent should be able to provide useful guidance.
Give Some Perks:
Another way to respond to an offer that's lower than the listing price is: Offer to pay closing costs but stand firm on the full asking price. You may not have the cash to pay closing costs, so the buyer might be willing to pay a portion or all of them. This will allow you to sell your house faster and possibly for more money. However, make sure the appraisal supports the final counteroffer. Otherwise, your buyer's lender may not lend the additional money.
You can also offer to let go of any appliances, window coverings, or furniture that you were planning to bring with you. These are chips that you might use to help close the deal in real estate poker.
Split The Difference:
You may decide to split the difference if negotiations come to an abrupt halt or the offers seem too good to be true. If there isn't a lot at stake, it shows you are willing to compromise. This may be the best way to close the deal.
Your Bottom Line Is Your Goal:
You can drop the price if you make the first counteroffer. With each counteroffer, your willingness to lower the price should be reduced as a percentage of the total amount. This basically means that you are close to your bottom line. You should inform the buyer that your goal is not to lower.
However, you should be aware that the situation could change if you respond to a counter after an inspection or appraisal. After the inspection or appraisal is complete, be prepared for any counteroffers. The buyer may be able to give credits to you so that the repairs are not necessary. This will save you the trouble.
Consider all options, and make sure to know your limits. Be prepared to accept any offer that is lower than your bottom line.
