At the end of the day, most of the steps you take when it comes to selling your home are about maximizing its value. But you can do everything right and still not get the offers you’re looking for. In that case, what can a seller do to make sure they’re in a position to negotiate a fair price with potential buyers and their agents? What follows are a few of the most important things to consider, as viewed from the home seller’s perspective.
Understanding Your Agent’s Role
Whether you like it or not, much of the discussion and negotiation regarding your home’s value is going to take place not between yourself and the buyer, but between your agent and the buyer’s agent. Often, this is for the best—negotiations can be delicate and time-consuming, and it’s sometimes wise not to have the sellers and buyers discuss these details directly.
Of course, this also means that it’s especially important to choose an experienced agent who knows the value of your home and can help you to effectively negotiate the best possible price. At the same time, it’s important to know the limitations of the process so that you can set realistic expectations—your agent isn’t a magician, and they won’t be able to sell your home at twice the value of a similar home in your neighborhood.
Offers and Deadlines
Many sellers choose to set a deadline for incoming offers from buyers. This will make your life easier as a seller, and is especially useful if you know that your home is valuable and will field competitive offers from the get-go. On the other hand, in some cases it may not make sense to set a deadline—for example, if you have time to wait for the best possible offer to come along.
Either way, you’ll have to look carefully at each offer as it comes in. Consider whether the offer is close enough to your listed price—if it’s less than 90% of what you’re asking, that’s likely too low. There may be other pertinent factors as well, including whether or not the buyer expects you to cover some of the closing costs.
Should You Counter-Offer?
Many sellers struggle to decide whether or not they should put forth a counter-offer after receiving an offer from a potential buyer, especially if said offer is close to what you’re asking for, but not quite there.
Your agent will be able to help you decide, but ultimately this is a personal decision and requires some negotiating skill. You never know how much a buyer is willing to adjust their offer—and what will drive them away for good. With that in mind, it’s wise not to nudge the price up too much—compromise is key. If you’re looking to suss out the buyer’s level of interest, it won’t hurt to have your agents discuss the sale, but keep in mind that you don’t want negotiations to drag out for too long, either, as that could cause problems if the buyer drops out at the last minute.
For answers to your home buying questions and more, contact Phil Ganz at Fairway Mortgage Corporation today!