Negotiating The Sale Of Your Home

Whether you market your home "by owner" or with a Realtor, it is frustrating when your home does not sell. What went wrong? Was the Realtor at fault? Did the you, the owner make a mistake. Are you in a bad market?

Negotiating is not power over another.

Negotiating is used to get from one position to another. For those of you who favor "tough negotiators" you may be making a mistake. A negotiator that "digs his heels in" and won't budge is by definition not negotiating. Getting hot headed and stating "It's final, I won't sell for a penny less" or "it's the principle of the matter" indicates you are no longer negotiating. A tough negotiator is really one who never quits negotiating, on who does not give up and one who succeeds at moving the other party to an agreement.

Hinting is a good way to keep the negotiating moving.

For example, when presented with a low offer you might respond, "would the buyer increase the price if I throw in the washer & dryer?" You have not committed yourself to giving away the washer & dryer, instead you want to gain information on whether or not the buyer has more money to pay. Hinting is a way to give the buyer a little more information so that you gain knowledge of his situation.

Know the market value of your home.

If you demand that a buyer pay a set price for your home, then you should be able to "prove" your homes value in the marketplace. The buyer's agent will come to the negotiating table armed with proof of what you paid for the home, a list of comparable sales and with the knowledge of what other homes, are currently available for sale. If you are unaware of what competing homes in the marketplace are asking and about recent sales you are negotiating at a disadvantage.

It is not the principle of the matter - don't be foolish.

Many times sellers lose sight of their objective to sell the house. Instead they begin to focus on the buyer and what a great deal the buyer is getting. When you begin stating, "I won't budge, it's the principle of the matter" you are in trouble. It is one thing not to cave in because facts and the marketplace are in your favor, it's another not to negotiate because things are not working out exactly the way you want. If you are selling your home, your objective should be just that- selling your home.

Never give an ultimatum.

Ultimatums have no place in negotiating. Playing heavy handed and standing firm on principle by telling the other party to "agree to my demands or else" is gamble that is often lost. Sometimes letting the buyers to feel they are in control, keeps in you in control.

If the buyers ask you to take less than you want, answer with, "I will give it serious consideration." When they ask "well have had enough time to think, what is your answer?" respond "I'm still thinking about how I can make it work." When they call again the next day, say "I think I can make it work for this amount." Answering with a "this price is final, take it or leave it" stops the negotiating. The buyer may begin to think they have no hope for getting the home and decide to move on to a different home.