Now that you’ve received a serious offer on your home and you and your potential buyer have started negotiating over its price, here are three next-level tips that will help you secure the best deal possible:
1. Counteroffer with emphasis. There are a few ways to do this, but one way I recommend is lowering your list price. This not only creates a binary dialogue with your potential buyer, but it also creates more competition for them because it shows that you’re willing to make a deal at that threshold.
The only reason not to do this is the fear of missing out. In other words, you think another buyer might swoop in and offer you full price. Here’s the thing, though—if two or three weeks have gone by and that hasn’t happened, it probably never will. If you don’t want to counter by lowering your price, you can also create scarcity by telling the buyer that you’re talking to many other parties.
2. Find out what else is valuable to the buyer (other than price). When you know what’s important to them emotionally, you can build on that and have a more collaborative negotiation. For example, let’s say their monthly mortgage payment is important to them. If you asked for $1 million and they offered $900,000, you can tell them that if they’re willing to come up to $975,000, you’ll pay a certain number of discount points that will lower their monthly payment.
"Negotiation isn’t about giving in; it’s a dynamic process where many other factors besides price are discussed."
3. Remember that they need you too, so don’t give in. Negotiation isn’t about giving in; it’s a dynamic process where many other factors besides price are discussed. Buyers have to come to you. They want to come to you. If they want to buy your home, they understand they you’ll only sell it to them at a certain price and under certain terms. At the end of the day, for most real estate negotiations, the seller has more leverage than the buyer—especially in a market like ours.
Even in a soft market where a buyer might feel like they have tremendous leverage, they’re not going to buy a home just for fun. They’ll buy it because they need a place to live and they can see themselves living in your home—they just don’t want to overspend and feel like they’re losing money.
So counter with emphasis, find out what else is important to the buyer other than price, and remember that they need you and they want you to agree with them. If you do that, you’ll be more successful than if you just negotiate haphazardly.
If you have any other questions or would like more information, feel free to give me a call or send me an email. I look forward to hearing from you soon.