In this article, you’ll learn how to get the most money for your home when you go to sell. Learn how to negotiate properly and avoid the BIG mistakes sellers everywhere are making.
Negotiating Strategy #1 - Never Show Your Cards
Remember the old country song by Kenny Rogers that goes “you’ve got to know when to hold ‘em and know when to fold ‘em”? It’s true with Poker and it’s certainly true in Real Estate negotiations. First, know what you are legally obligated to reveal to the Buyer and their Real Estate Agent. There are certain items you are required to divulge to potential buyers. Consult with your Real Estate Agent for more information.
Also, be realistic and somewhat flexible. FAR too many sellers will overprice their homes and their Agents won’t do a thing to stop it. Why? The Agent knows that the home will eventually sell. So, it's to their advantage in some cases to get a higher selling price, which will mean a higher commission check in their pocket. So, don’t be afraid to consult with your Agent and tell them that you want to sell your home in a reasonable amount of time, which might mean lowering the price a bit.
Once you agree upon a reasonable selling price, be ready for the Buyer’s Agent to negotiate with you in an attempt to get the best price. NEVER tell the Buyer or the Buyer’s Agent what your absolute “bottom-line” price is. Let them guess, which will help you at the bargaining table.
Negotiating Strategy #2 - Not asking your Real Estate Agent this question
As your Real Estate Agent this question: “Are you working for the same company/brokerage as the Buyer’s Agent?” If your Agent works for the same company as the Buyer’s Agent, they are required by law to share everything with each other regarding your transaction. If you tell your Agent something, he or she will be required to share it with the Buyer’s Real Estate Agent. Can you even imagine how this impacts negotiations? The term for this is “Dual Agency”. If you discover that your Agent is working for the same company the Buyer’s Agent, you should keep to yourself as much as possible. For instance, if you are willing to accept $2,000 less for your home as a bottom-line price, don’t tell your agent, because they will be required to share this with the Buyer’s Real Estate Agent.
Negotiating Strategy #3 - Acting Too Quickly
Especially if you are selling in a fast-paced market, you might feel pressured to quickly accept an offer placed on your home by a particular buyer. There is no need to feel any pressure, or for that matter, to act quickly. It’s in your best interest to slow down, review the offer, and make sure it’s on your terms. Once an offer is made on your home, you are in the driver’s seat (well, at least somewhat). You’re not completely in control, but you have identified a person who wants what you are selling, which means you have a bit more flexibility. So, relax and slow down a bit. Never accept an offer “today”. Always tell the buyer or buyer’s agent that you want to talk it over with your Real Estate Agent first. . .
BONUS Strategy #4 – Develop a Home Buying Strategy
If you are selling your home, statistics say that you will likely buy a home here or somewhere in this state. You will soon be on the other side of the deal when you become a home buyer. You’re going to participate in the largest financial transaction of your life the next time you buy. Are you ready? Have you done your homework?
Are you aware of the supply and demand statistics of home inventory vs. sales made this year? Are you aware of what % of total homes listed for sale actually sold last month, and more importantly, how that statistic can positively affect how you structure your purchase offer? Have you assessed the best use of your cash and planned to maximize your leverage? In short, have you prepared a Home Purchase Strategy? We participate in many real estate transactions every month. Over time, we’ve learned a thing or two. Our staff would like to help you develop your personal strategy and consequently help you save thousands of dollars in the process.
We call this our Home Buyer's Coaching Session®. We put our experience to work for you, preparing you to make an informed, money saving offer. This article is written to help educate you and increase your fiscal literacy.
Why? Simple - if we do a good job helping you prepare, maybe we can earn your mortgage business.
Darren Meade is a National and Local Real Estate Expert. He has created 2 FREE websites to better educate the public. http://www.freemortgageinformationsoutherncalifornia.com http://freerealestatesecretssoutherncalifornia.com He's licensed and transacts real estate financing in all 50 states.