Here are four negotiating tips both buyers and sellers can use during a home sale to ensure that they get a great deal.
First, reply to an offer or counteroffer quickly. A quick response time shows the other party that you’re serious about the transaction and you know what you want. Dragging things out and waiting to respond, on the other hand, will make it clear to the other party that you’re not serious and/or you’re stretching yourself thin financially, which is a sign of weakness when negotiating.
Second, make sure you hire an experienced agent. If the negotiations aren’t handled properly by your agent, you could lose out on thousands of dollars. An experienced agent knows, based on the conversations with the other agent, what the other party’s sentiment is. They’ll then be able to decipher that sentiment for you so you can make the right decision moving forward in the transaction.
My next two tips are specific to each side of the transaction.
If you’re a buyer, check in regularly with your lender during negotiations. The difference between where you make your initial offer and where the seller makes their counteroffer is usually between $5,000 and $10,000. While $5,000 in a purchase contract may sound like a lot, it typically only amounts to an extra $25 per month for your monthly mortgage payment. Talking with your lender can help you overcome any financial fears you may have moving forward.
If you’re a seller, be aware of all of the holding costs of the property—the mortgage, utilities, and things of that nature, as well as the intangible costs (i.e., the time and energy the sale is taking away from your day job or other life activities). Sometimes it’s better to accept a deal now that might not look as good than it is to accept a deal later on that’s far less beneficial or accept an equivalent deal which still required you to spend thousands of extra dollars to maintain the property.
If you’d like to know more top negotiating tips when buying or selling a home, or if you have any other real estate questions for me, please feel free to give me a call or send me an email. I’d love to help you.