“Negotiations over a shrinking pie are especially difficult because they require an allocation of losses. People tend to be much more easygoing when they bargain over an expanding pie.”

Daniel Kahneman

Real estate is one of the best ways to make profit and gain returns in the longer run. It doesn’t matter whether you are working in house flipping industry or planning to sell your own house, negotiation is a skill that you would require at every stage of your career. Unlike the ideal condition, real estate transactions are best when both the sides feel satisfied and happy after the transaction.

One of the common mistakes that homeowner make is to get involved in negotiations without proper knowledge of the industry. Having a Realtor® by your side is the best way to be gratified after the discussion. If you have any suggestions, discuss them with your Realtor®; avoid being caught up in a direct negotiation meeting.

Negotiation Tips for Sellers

·         Emotional Decision Making Prohibited: If you have spent several years in a house, it is obvious to have some memories and emotional attached to it. However, when it comes to selling your house, avoid taking any decisions or making any comments based on your emotions. You have to be commercial to close the deal profitably.

·         Counteroffer is the key: Most of the sellers feel insulted when offered a lower price; however, the best response under such situation is to offer a counteroffer and kick the negotiation process. It will help both the parties reach mutually acceptable terms and end the discussion fruitfully.

·         Price is not important but the profit is: Unlike most of the sellers, do not fixate over a price, pay attention towards final settlement date, and evaluate your profit accordingly. The best deal is the one where both sellers and buyers decide costs associated with the transaction and divide them in a reasonable manner. Make an offer for which your buyers have proper finance and it might help to make concession on one or two deals to close it successfully.

·         Have a Realtor® on your side: Every buyer has an agent to present their offer and terms of the transaction. The most effective way to handle the situation is to have a realtor® on your side and allow him to make decisions on your behalf. Realtors are aware of the current market condition and they can make invaluable contribution in the deal. It is important to choose your Realtor® wisely and trust his/her capability.

·         Time is of essence: Most of the homeowners end up without an offer because they ignore the initial ones and tend to wait for better prices. However, most of the houses receive best offers within their first few days in the market and it is best to keep the momentum and prepare a counteroffer for your buyers.

As a seller, make sure to work in close relationship with your realtor® during the negotiation period. Once you are sure about your profit margin, move ahead with the sale and close the transaction.  

Hire a positive and proactive REALTOR® to help you find your next home!