The Dos and Don’ts of Negotiating

The Dos and Don’ts of Negotiating

Selling your home is a business transaction. Although it may be a many-layered process that appears more personal than business, at its heart, it’s simply a buyer negotiating to purchase a seller’s home for an agreed-upon price. You as a seller must keep this fact in mind. Opinions, emotions, and ego may attempt to derail your efforts; don’t be the transgressor.

The more you know about negotiating, the less likely you are to create a needless detour during the sale process.

Do Let the Buyer Speak First

Let patience be your guide when dealing with an interested buyer. Don’t be anxious to tell him or her what you’re willing to accept; it may be lower than the buyer was willing to offer! Like any sale transaction, buyers have a price in mind, even if it is a lawn mower at a yard sale. They might be willing to pay $200 for the mower, but when they ask, you say $125. Do not lose the advantage of being able to counteroffer rather than offer first. Let the buyer speak first. That’s why it’s called an offer. It will either be an offer you can accept – or you will at least have more knowledge about what price the buyer has in mind.

Don’t “Meet in the Middle”

Even in the simplest of sales transactions, agreeing on a price often includes “meeting in the middle”. For instance, a buyer speaks first and offer to buy an item for $150, when the seller is expecting to sell for $200. Most will split the difference and counteroffer $175. By keeping the splitting point in the seller’s favor by counteroffering $220, the mid-point is now $200. The buyer nay take the offer or agree ti $205, which is slightly more than what the seller planned to ask for, Maximize your negotiation by counteroffering in small increments. Avoid following human nature by “meeting in the middle”.

Don’t Accept Low Ball Offers

Homebuyers look for deals. Think how quickly you would jump at a home selling below market value and in perfect condition that meets your every need. That situation rarely happens, but that doesn’t mean buyers won’t make low ball offers. If they see your house as the perfect home, they may switch their priority to getting a lower-than-market-value price in negotiations. If buyers truly like your home better than any others, then why would they pay less for it? Keep focused and negotiate accordingly.

Do Be Quiet and Listen

Whether you are approached by the buyer or the buyer’s agent, remaining quiet is one of the best ways to negotiate the sale. Developing a feel-good, overly friendly relationship eith either can interfere with your focused efforts to sell your home quickly and for a fair price. Buyers uncomfortable with your quietness may want to break the silence by giving information that would be crucial to know. Again, the more knowledgeable you are about the buyer – rather than the other way around – the better poised you will be in negotiations.

to be continued….

Excerpted from my book “Selling Secrets – You Can’t Afford to Miss”

Ricardo Parente, Realtor?

Coldwell Banker Realty | Winter Park, FL

Contact me

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