How to Negotiate from Contract through Inspection
Love Selling Your Home – Week 7This is the seventh article in my series called, Love Selling Your Home: Minimize Your Stress, Maximize Your Profit, Dwell Residential’s step-by-step guide to selling your home “right” even in today’s robust market. My series takes you through the entire home-selling process -- from finding a real estate agent to settlement day. Look for a new, informative article each week, right here!Selling a home is an emotional experience for many of us. Your home is a part of who you are and where you’ve been in your life. But, first and foremost, selling a home is actually a business transaction with a buyer.You don’t want to get swayed by emotion and make mistakes when you’re negotiating your final contract that you’ll regret later.Remember, the outcome of this transaction can affect your next step as a homeowner.But keep in mind both parties (that’s you and the buyer) want to close the deal, right?! So you shouldn’t have a “winner take all” mindset but be willing to compromise when necessary while still looking out for your best interests.Here are some smart tips for negotiating the sale of your home:
- Determine the buyer’s motivation and timing
Why does the buyer want to buy your home? Buyers also can give clues to how long the process will take. They may have a home to sell too, which can complicate and prolong the proceedings. However, some circumstance (moving, a baby on the way) can actually hasten your dealings. Keep your ears and eyes open so you have a better sense of what your buyers want.
- Keep the conversation going
Sellers should always respond to an offer. By submitting a counter-offer, you can start a process in which you can see how high the buyer is willing to go. Remember, you want to keep the negotiation moving. The longer you stay in the negotiation, the more likely you’ll reach a satisfactory conclusion since all parties are invested in getting the deal done.Also, if you have more than one offer, it’s usually best to disclose this information to all parties to maintain trust and to maximize your ability to obtain the best price.
- Have a positive outlook on contingencies to get the deal done
As a seller, it is best to appreciate a buyer’s willingness to do business even with a contingency, and do your part to make the sale successful.You should work together to resolve any repair issues that may arise after the inspection. Be willing to work with the buyers and come to a mutual agreement -- if they want you to fix the items or you reduce the price so that they can hire their own contractors.However, do be careful that you don’t accept an offer that contains a high-risk contingency like waiting for the buyer to sell their existing home, a long option period, or a buyer without approved financing. You don’t want this to lead to a dead end, so be careful.
- Sweeten the deal if you get you what need or want in return
As a seller, it’s not a bad idea to give a concession that can help seal the deal. It doesn’t have to be price, it can be financing, or something on the property the buyer may want. Making a concession keeps the negotiation process moving and shows you want to work with the buyers in some way. Remember, you want to move out of this house and not be stuck!Stay tuned for next week’s What’s an Appraisal and Why Does It Matter? This article will cover this very important step when you have a home under contract. It’s sometimes a nail-biting experience since you don’t want the appraised value of your home to come in below the asking price.We hope you keep enjoying my Love Selling Your Home series!