Negotiating a contract price based on what you “need”, or a value based on the cost of what you have put into the property, will never be a successful strategy. The bottom line is that your Woodlea Manor house will sell for what someone is willing to pay for it. But what if you could persuade a buyer to be willing to pay a price that is very close to your list price? What if you could show that buyer exactly how you determined your price as well as the underlying support for that valuation? Your chances of negotiating a favorable contract just improved dramatically. There is no better method of justifying the value of a home than established appraisal principles. Does your agent have the skills and knowledge to build a compelling case for your valuation? Or does he/she deal with generalities that leads to a negotiated price that is merely in the ballpark?
Unfortunately, I’ve found that the most common negotiating strategy in the real estate industry is to follow a pattern of “splitting the difference” until the difference between the two sides is minimal. This might work great when negotiating at the Woodlea Manor yard sale, but I don’t believe it’s a smart strategy for negotiating a contract for your Woodlea Manor home. I’ve had many clients who sold their home with very little negotiating power, but were able to negotiate a sales price that was 99% of their list price. They were successful because they were willing to stick to a “principled strategy” that focused the negotiation on the underlying support for their valuation. On the other hand, I’ve had clients with a tremendous amount of negotiating power that left thousands of dollars on the table because they chose to engage in a pattern of “splitting the difference.”
It is important to realize that negotiating the price is just the first step of a long process that requires give and take from both sides. Ideally there is no winner and loser in the negotiation. The goal should be a “win, win” agreement. Both sides should come away from the negotiation feeling they were treated ethically and professionally. Even if one side holds all the negotiating power, they should still make some sort of concession, no matter how small it may be. When both sides believe that the negotiation has resulted in a fair agreement, then the chances of getting to the settlement table are much more likely.
If, or when, you decide to sell your Woodlea Manor house, I hope that you give me the opportunity to earn your business. One of my top priorities will be to negotiate a contract that reflects the true value of your property!
If you would like to see homes in Woodlea Manor that are currently on the market, click here.