3 Negotiating Mistakes Home Sellers Make. So you’ve staged your home beautifully, timed the market perfectly for a quick sale and you’ve priced your home right. Time to start getting full price offers right? The reality is that buyers are full of surprises and nearly all of them are predictable. Here are 3 negotiating mistakes many home sellers make that you can avoid.
Home Buyers, rarely pay list price, they discount or dismiss improvements you’ve made, their inspections usually turn up something for you to fix and their offer may have terms you hadn’t anticipated.
Whether you plan to or not, you’ll need to negotiate, that doesn’t mean you win and the buyer loses or vice versa. It’s simply a way to make smaller concessions so that you don’t lose the buyer and the buyer doesn’t lose your house. Negotiation is designed for both parties to get what they want.
Good News, a potential buyer has indicated they’re going to make an offer on your home, that means you’ve done something right or you wouldn’t have an offer, but a sale isn’t in the bag yet. Don’t blow it. Here are 3 negotiating mistakes to avoid.
NEGOTIATING MISTAKE 1:
DEMANDING TOP DOLLAR FOR AN AGING PROPERTY –
Yes, the market is better than it was during the recession, however, an older home that hasn’t been updated or maintained to perfection can’t compete with refreshed or newer homes.
Taste-makers suggest that interiors need updating every 10 years because color, patterns and textures define each generation.
After living in your home for a few years, you no longer see the dings, scuffs or aging finishes and fixtures that make a home look used. But the Buyer does, even if your home is in good condition, the Buyer sees something that needs to be replaced.
NEGOTIATING MISTAKE 2:
TAKING A LOW OFFER PERSONALLY –
A buyer may make an offer for your home far lower than you feel it’s worth. Don’t take it personally. it’s a negotiating tactic. They rarely are expecting you to take 20% off the list price, but they are telling you something. You, (your agent), needs to find out what the reasoning is behind the low offer. Perhaps they’re using inaccurate comparable, they could be trying to buy above their price range, or they may be investors who use a low-ball formula to acquire properties.
No offers, or extremely low offers could be telling you that your home is over-priced compared to similar homes in your neighborhood. If your agent gave you a price range for what homes similar to yours are selling for and you priced above that range, you need to lower your price. A low offer can also mean the market has slowed or shifted since you originally listed your home. It’s time to re-evaluate your position by taking a new look at the current comps for your neighborhood. The secret to pricing correctly is pricing into the market you’re headed into.
NEGOTIATING MISTAKE 3:
AN ALL OR NOTHING ATTITUDE –
Negotiations keep the dialog going and the buyer interested. That’s why asking questions before you say no is always a good idea. If you know what the buyer really wants, it’s easier for you to draft a counter that can work for both of you.
In a seller’s market, you may expect multiple offers from multiple buyers, and that could happen, but it’s rare. In a soft market, your buyer is more likely to simply walk away and find another home that’s priced better with more features or in better condition.
Avoiding these negotiating mistakes home sellers make and being flexible on the points that count most with the buyer, like move-in dates, may make negotiating repairs easier as you move through the contract timeline.
You want to sell and the buyer wants to buy; Having Skilled Negotiators on Your Team, like Cathi and Ben Walter, will be critical to maximizing what you can ask and receive for your home sale.