How To Negotiate the Right Price When Selling Your House?

How To Negotiate the Right Price When Selling Your House?

One of the key aspects of selling in real estate is negotiating the right price. As a seller, it works in your best favor to get the right price. But considering that you’ll be dealing with all kinds of buyers, it can be difficult sometimes to get what you want.

So before putting your house on the market, consider these 3 negotiating strategies that help you get the right price.

Always Counter

No one will bid the price you ask for on their first try. If we look at the most common negotiating strategies for buyers, this one comes right at the top. But as a seller, you can counter the first offer if it’s below your asking price. You are encouraged to do so as buyers expect this anyways.

Everyone knows that buying and selling is a back-and-forth process that can sometimes last for months. So unless the buyer bids what you ask for, you should always counter. Countering, or putting a counteroffer, is a great way to test the water. You’re supposed to counter with a price that is higher than what the buyer bids but lower than your asking price. It’s a sort of strategy where both buyer and seller meet in the middle.

Countering does help achieve your goal of selling the property, but not for the price you want. With all that said, no one should expect to sell their property for what they ask – this is why you negotiate. If a realistic price for your house is $300.000, you should price it above that so you can meet in-around the 300k mark.

You can always counter with the same price that you’ve set, but all this does is discourage buyers to make a second bid. This does help you achieve your goal of sticking to the right price. But what it fails to achieve is get the house sold.

Reject Sometimes

One of the more unorthodox practices of selling your house is to go FSBO. FSBO means for sale by owner and it is essentially a strategy where you do all the work. There is no agent involved on your side, but what this does give you is the ability to save on paying a commission. That’s not to say that FSBO works, as nearly 91% of all FSBO listings are usually well overpriced.

So it’s quite natural to assume that if you do indeed go FSBO, you will overprice your home. This works against your objective to sell your house. More so, it goes against your goal of negotiating the right price – as there won’t be anyone to negotiate with.

You will receive lower bids, and you’ll most likely reject them. But if you’re smart about it, you can ditch the FSBO approach and go with an agent. The agent will help you accurately price your house and give you more breathing room. You can still reject bids, and there is a real use-case as to when this negotiating strategy works.

You reject if the buyer is making a fool of themselves or trying to offend you. When that’s the case, reject the offer and ask them to submit a more respectable offer. If the buyer does indeed plan on submitting another offer, they will most likely submit an offer closer to your range.

What instantly rejecting hopes to achieve is tell the buyer that you’re not going to budge to lowball offers. It tells buyers that you know the worth of your property and are not intending on going lower.

Counteroffer With An Expiration Date

The third negotiating strategy is to give the buyer time to think, but not too much. At the end of the day, sellers hold all the cards. They chose whether to accept, reject, or counteroffer. Since we already talked about counteroffering, what you can do is counteroffer with an expiration date.

If you respond to a buyer, then you’ve already started negotiating. So when negotiating, it is essentially considered unethical to accept another higher offer without notifying the other party. With all that said, doing this isn’t illegal. So what you can do is counteroffer with an expiration date. The seller is also supposed to notify if other parties are involved. So when you counteroffer, you give them an expiration date to essentially tell buyers to hurry up.

This can encourage or discourage buyers from making a second offer. But if you’re negotiating with multiple buyers, then there is the chance of sparking a bidding war. A bidding war is essentially when multiple buyers compete for your house. By playing your hand carefully, there isn’t a better way to get the right price than through a bidding war.

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