Selling a house is tough: you have to make repairs, hold showings and then wait for offers. All this hard work may go to waste if you can’t make a good deal with the buyer. Deals fail when both parties can not agree to equally favorable conditions. Recently, prices for 25% of houses on the market have dropped. You may have to compromise on the sale price just to get your home to sell. Here are a few negotiating strategies you can consult to get a fair deal on selling your house.
1. Hire an Experienced Realtor
Price negotiation requires skill, something you may lack as a beginner. In contrast, an experienced real estate agent would have signed multiple deals and be aware of the most profitable selling tactics. They know the market demand and use it to negotiate terms with buyers, such as closing costs and transfer taxes.
It is vital to note that real estate agents take commissions on a sale: they may help you land a profitable deal, but they’ll take a considerable portion of the profit. If you want to hasten the process without paying any hidden costs, forgo hiring a realtor and consider selling your house directly to a homebuying company like Avante Homebuyers. Such companies accept homes in all conditions and can help homeowners out of situations like foreclosures and divorces.
2. Start a Bidding War
An open house is one of the best ways to attract potential buyers. They can inspect all aspects of the property, and you may receive many offers if they are interested. However, do not entertain any offers during the open house days, as deciding early on may make you miss better offers.
By not accepting an offer early, you can also make buyers think you have multiple options, making them more likely to compete and place higher bids on the building. With many good choices, you can contact the highest bids and negotiate further. Even if you only get one offer, the buyer will not be aware and may still offer a higher price than they originally planned. By having your prospects assume a bidding war, you can achieve a better sale price for your home. Do not delay accepting an offer for too long, or your clients may just find another place they are interested in.
3. Have an Expiration date
Receiving an unsuitable offer on the house can be demoralizing. But it also means a buyer is interested in your property. Mainly, a buyer’s first offer is less than what they are willing to spend. Instead of rejecting, give them a counteroffer below your listing price. You can add an expiration date to the counteroffer to compel the buyer further. The date should not be too short to repel the buyer but should be less than your state’s standard real estate contract time.
Expiration dates also hasten the negotiation process, as you know sooner if a deal will happen or fall through. During negotiations, your house is off the market, but by making the negotiation swiftly, your property can stay on the market for reasonable periods to attract better offers.
By hiring a skilled real estate agent, you can negotiate with the buyers tactfully and get a fair selling price. Similarly, a bidding war will create competition among the buyers, and adding expiration dates to price offers will compel them to think more deeply about your property. All these strategies can help you get a reasonable selling price and higher profit from a house sale.