How to Negotiate to Sell House
In a robust property market, as witnessed throughout the late nineties and two’s, there was strong demand for property with first home buyers, up-graders and investors all bidding against each other for the same property. Strong demand in conjunction with sound interest rates drove up prices which helped property owners move property fast, achieve robust prices and requiring little input from agents.
If you are selling in a cool property market (for reasons such as high interest rates or an oversupply and lower demand), the selling environment becomes a little more challenging. Potential buyers tend to put in low offers in the hope of achieving a bargain. If the property is priced accordingly it will sell itself.
The first step in the sales process is to set yourself parameters to your lower limits of acceptance to an offer and consider what may be the upper limits to list your property. Anywhere in between can be classed a “reasonable offer”. Take time on the weekend to visit open houses and scan property ads. This strategy will greatly assist in knowing the market and negotiating the sale of your property.
When negotiating and selling your property be cautious not to enter into haggling with a potential buyer. If a buyer is serious and presents a ‘reasonable offer’ask if they’re willing to put their offer in writing. This provides a good way to test the level of their intent.
By requesting the potential buyer to submit a written offer on contract with any conditions, provides you with a starting point to negotiate, it demonstrates that they are a serious contender and you know what parameters you are working in to close the sale. At this point the buyer should also supply a deposit (normally 10%) which is held in trust with your solicitor. SellingMyHouse suggest you discuss this process with your solicitor before you commence the sale process of your property.
If the offer is at the lower end of your asking price you will have to decide if you are willing to accept the offer or negotiate the price upwards to your limits. It is only when both parties sign the real estate contract that the deal is binding. Sellers Manual Pro, available in our Premium and Pro marketing packages offer strategies and tips to assist you in negotiating price upwards.
Negotiating Tips for Selling Home Privately
Tip #1 Research the market and see what other properties with similar attributes to yours are selling for. Sellers Manual Pro available with Premium and Pro Marketing Packages has several unique tools to greatly assist in establishing your property’s price plus create a guided analysis of feature comparisons of your property to others on the market. These tools will deliver immense capabilities for you when it comes to negotiating and selling your property.
Tip #2 Look to the sale of your property as a business transaction. Set aside any emotional attachment to your property as this tends to interfere in your negotiation capabilities. Keep in mind that pricing of properties tend to revolve around land size, number of bedrooms, bathrooms, location and external market factors. Emotional currency of love, memories and hard work you’ve shared with your property does not add value to the buyer. These emotional attachments have to be taken out of the equation when negotiating the sale of your property.
Tip #3 Predetermine your lower limits of acceptance before going into negotiations to sell your property.
Tip #4 Ensure your listing price is within the parameters to that of the market.
Tip #5 Do not haggle with buyers. You should request that the offer be put in writing and include any conditions to the purchase. Look to a deposit with the offer, payable to your solicitor’s trust account. This demonstrates that the buyer is serious, provides a starting point or parameters to negotiate the house sale. Sellers Manual Pro available with Premium and Pro marketing packages provides negotiating and selling strategies that will greatly assist in the sales process including techniques to walk up low offers.
Once both parties have agreed on the final negotiated price, and the contract is signed by both parties the sale is binding. (Note – some states of Australia may have a cooling off period. Check with your legal adviser for relevant laws)
Tip #6 Establishing the average time properties are on the market. This can assist in the negotiating process and sale price.
Tip # 7 Look to achieving a win win negotiating position for both you and the buyer. What this means is some give and take to close the sale.
