When selling a home, sometimes it can be or feel like one of the most stressful times a person can endure. Along with the selling process you must also search for a new home, choose a lender, renovate your home,along with strange people walking through the home your kids grew up in. The list is endless.
But how stressful would it be if a perspective home seller changed their mindset. Instead of looking at the process on a personal level, try looking at it from a position of being the CEO of your own company. Why a CEO? If you really get down to it, what are you really doing when you sell your home? You are selling what could be thought of as a company.
Let's say you purchase a home 5 years ago. What you have done is invested capital into this venture by purchasing the home or let's call it company. What was the purpose of this purchase? To be your own owner or let's say CEO of this capital investment and increase your investment over time. If your investment has increased in value(a higher appraised value, more equity) you can remove some of the profit you made and invest it back into your company for capital improvements(renovating). When your company(Home) has become to small and you need to move up to a larger company, the equity you have built from your current investment will help you achieve that. What you have accomplished over the last 5 years is no different than what major corporations do. Starting to get the picture?
But here is the most important mindset that needs to change. Don't take things personally. When buyers are walking through your home, they will make comments. They will critique everything from the carpeting to the color of the walls. It is human nature. But remember, you are selling an investment. As a former Director of Operations, I was involved in purchasing branches for our company. Believe me, in the corporate world the same thing goes on. Comments about cubicle placement, file storage, even the office decorations. But the one difference is when it gets down to the negotiations, no one takes it personal. Remember, you may be selling the first home you ever owned, or the home your kids grew up in, but bottom line it is a capital investment in the "Your Name Here" corporation.
Here are a few tips to negotiating a deal.
1. Before you even start to negotiate, define what your goals will be. Most sellers only think of one goal, what is the maximum I can get for my home. This is understandable. But there is also another side to negotiating, and that is, what will I accept as my bottom line. Remember, you are negotiating. There will be offers and counter-offers. Before going into a deal you must decide what you will be willing to adjust to make the deal happen.
2. Do not go into negotiate with an attitude. Not only does that put you in a bad light, but also puts the other party on the defensive. On the reverse side, there will be buyers who will try their best to irritate you, thinking this will cause you to give in. At this point you must stay calm and clear headed. Realize what they are doing and instead of getting angry be pleasant and charming. In a matter of minutes you will see the change in their demeanor. Remember to negotiate means " to arrange for or bring about through conference, discussion, and compromise a settlement."
3. Lastly, one thing I have noticed myself is that when excited about a deal, people talk too much. They get chatty and next thing you know they are spouting off information that only helps the other side of the negotiations. This is not to say, you shouldn't speak, but more importantly you want to listen. You want to hear what the other side is saying and how they say it. By listening, you will gain a world of information of just what the opposing side is looking for and wanting.
The most important thing to remember to keep in the power of negotiating in your corner is to negotiate with your head and not your emotions.
If you need a lender who can offer your potential buyers several options to purchase your home, give me a call and I can set you up with professional flyer's to distribute.
Phone 707-494-8532
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