If you're selling your home for the first time or simply looking to get into real estate investing, understanding the art of negotiation will take you very far! These negotiation tips will surely help you get on the right track to negotiate like a pro.
We are programmed to think that in order for us to negotiate it has to be win-lose. We feel that we can get our way by being super strict and run the chance of the buyer walking away because we didn't budge on one thing. Or the other way around, we just give in to everything that they asked for and we practically give the house away. But now we feel bad because we feel like we lost. Well, in order to negotiate, you don't have to feel like you lose and they don't have to feel like they lost. It is possible to negotiate with a win-win mindset and when you are able to do that, then everybody's a winner.
Pricing ahead of the market simply means if you're in a declining market and it looks like the houses are losing value slowly or quickly, then a tip would be for you to price ahead of that. If you know that in a week or two your property is going to be valued for at least $10,000 less, then price ahead to create a frenzy now so that you could get the offers and won't be the house sitting on the market. If you're working with a savvy realtor and they understand the appreciation is going up very fast and that in one month or so your home is going to be worth $10,000 more, then go ahead and price it at that point.
So some sellers will say, "Isn't it the buyer's responsibility to get a home inspection?" In a way you are correct. However, if you get a home inspection for yourself as a seller, even though the buyer may or may not want to use your home inspection, it gives you a leg up on what's wrong with the property. You don't want the buyer to be the one to come in and tell you, "It's a great house, but I'm going to give you $20,000 less because something's wrong with your foundation." It's very important for you to get a home inspection, find out what the problems are and get those things fixed before the buyer comes in.
Yes, you can save about $400-$500 in a home warranty, but this is especially important for houses that may have a roof that is at half life or you have older appliances. If something breaks, you can ease the buyer's mind by providing a home warranty. You also could get a slightly higher price for your property by offering a home warranty.
Let's say the buyer offers you a certain price for your home and you counteroffer the buyer without a deadline. Shortly after, you receive another offer from a different offer that is better. However, you cannot accept the other offer until the buyer either counters back. So your hands are tied and you can't accept any other offers even if they're better until the buyer responds with an acceptance or change to the offer. So my suggestion would be to make it seem like your house is high in demand on the market. Create that illusion that there is more competition by adding a time frame to your offers and counteroffers. This will help expedite the process and cause the buyer to make up their mind quickly.
So keep all these tips in mind when selling your home and negotiating a deal! Be sure to visit our YouTube