Selling your home is a big deal.
You will be involved in a major financial transaction. In order to secure a successful and quick sale, you need to understand this multi-step process. You need to think about preparing your home for sale, marketing strategies, and holding home inspections.
Once the offers start to roll in, the next step to think about is the negotiation.
Negotiating for a home is important because this is the largest asset most people own and there’s potentially a lot of money at stake. In real estate, some of the biggest mistakes happen during the negotiation process. In fact, negotiating offers is one of the toughest hurdles sellers face.
There are instances when the buyer is too stubborn and the seller yields easily. Other times, the seller can become too unyielding and loses the buyer completely.
Sellers want the highest price for their home while the buyers want the best deal. In order for the deal to close, the two have to meet somewhere in the middle. The goal is to reach an agreement on the deal’s terms, which include the price, timelines, contingencies, and items that may come with the property.
You must keep in mind that the selling process requires balance. You can play hardball, while also being reasonable.
As a seller, your view of an acceptable offer is entirely relative to your priorities and needs.
Here are some points to consider:
Are you selling because you want to sell, or because you have to sell?
What are your baseline sale price requirements?
What are your “must-have” and “like-to-have” conditions and terms?
How long has your home been on the market?
How many offers have you had?
How are home prices doing in your area?
Have you made an offer on another home that’s subject to selling yours?
You have full control when it comes to deciding whether to accept an offer or not; nevertheless, it’s best to be armed with negotiation skills when trying to sell your Waukesha WI home. In most home negotiations, the party that’s most prepared is generally the party that wins.
Here are a few tips that can help:
TIP #1: LEAVE YOUR EMOTIONS AT THE DOOR
Selling a house is an emotional process, especially when you have lived in it for a long time. It’s where you have had some of the most memorable moments in your life.
However, no matter how much your home means to you, you have to remind yourself that this is strictly a financial transaction.
Here are some ideas to help you detach from your house when it’s time to sell:
1. Think of your home as a product to be marketed
The best way to go about this detachment process is to see your home as a product that you have to sell.
2. Make Your House Less Personal
Remove any personal items. Doing so will give you a sense of peace and acceptance. It will also help potential buyers picture themselves as the next homeowners.
3. Focus on the future
Start thinking about your new home whether or not you have already bought it. Focusing on the future and imagining the wonderful memories you will have in your new home can significantly lessen your feelings of attachment.
4. Find Professional Support
Aside from getting help from family and friends, it’s also a good idea to find professional support.
Let me put my skills to work for you! I am Kristin Johnston, your top real estate agent in Waukesha WI.
As your agent, I will work closely with you, help you stay on track, and provide you assistance every step of the way.
Find out what my previous clients have to say about me and the services I offer! Visit http://www.kristinjohnston.com/testimonials/.
It will be easier to negotiate when you keep your emotions out of the process. You need to take the time to make calm and calculated decisions based on facts. This way, you’ll get better results and you’ll lessen the amount of stress that comes from negotiating.
Some interested buyers may make negative comments about your home in a clumsy attempt to secure a lower price. When this happens, don’t take things personally.
Do your best to stay level-headed throughout the entire process.
TIP #2: UNDERSTAND LEVERAGE
Negotiations are all about leverage.
As a seller, you need to take some time to learn how to create the leverage that you need in order to negotiate top dollar for your home. Leverage is the power to influence the other side to move closer to one’s negotiating position.
During a negotiation, each side’s leverage is the primary factor that will determine how the transaction will turn out. Whoever has leverage wins so learn where you have advantages, and use them to strengthen your negotiating position.
You can keep the ball in your court by simply keeping some information to yourself. This will help you control the structure of the negotiation.
For one, you don’t have to mention your deadline. Don’t let your buyer know that you’re behind on your mortgage, or getting a divorce, or moving across the country. Doing so will give them unnecessary leverage.
There are two critical keys to creating the leverage that you need in order to negotiate the best price when selling your home. These are exposure and price.
If you inform everyone that your home is for sale, but you price it incorrectly, you will not create the leverage that you seek. On the other hand, if you price your home too low, but do not tell enough people, you will not create the leverage that will gain you top dollar.
Remember that the highest price comes from attracting multiple buyers that you can lever in order to negotiate from a position of strength.
Watch the video below and learn how to create more leverage leading into a negotiation.
TIP #3: EXPECT THAT THE FIRST OFFER WILL USUALLY BE LOW
Most of the time, buyers will make a low initial offer in order to leave room for negotiation. In fact, it’s rare for buyers to agree to the listing price right away.
When this happens, some sellers think they need to make a counter that’s lower than their list price so they don’t lose the buyer altogether. However, this may not be the best strategy.
You can counter offer with your original list price. This sends a message that you know what your home is worth and that you are not willing to let it go for less. If you have priced your home correctly, then a truly serious buyer will remain in the negotiation with you.
It’s alright if you lose a potential buyer because they feel you are unwilling to lower your asking price. These aren’t the buyers you want anyway. You don’t have to waste your time on buyers who only make lowball offers, and who aren’t so much interested in buying your home as they are in getting a bargain.
You can also consider countering at a price that is slightly lower than your list price. This can help prevent turning off buyers while still making sure that you get top dollar for your home.
Remember, there’s no harm in countering in an effort to reach a mutually beneficial compromise. If you believe your home is priced fairly for the current market, you can always make a counteroffer at your original list price.
As your agent, I can help you set the right asking price for your home. Here are some of the ways I can help you:
I can provide you with a comparative market analysis, which is a comparison of recent homes with similar amenities that are available, in escrow and sold
I am familiar with the terms and conditions that went into individual sales, not just published sale prices which may not reflect various premiums, discounts, and adjustments
I can easily determine how much your home has the potential to sell for and help you set the asking price accordingly
TIP #4: SET A DATE FOR REVIEWING OFFERS
Another way to gain leverage as a seller is to set an offer review date. It is a deadline that the seller and listing agent designate for reviewing all potential offers. They will then review them and pick the one they like best.
You can tell a potential buyer that all offers are going to be considered at the same time on a specific date. This will create an environment of competition, with buyers feeling the pressure and offering above list price. You will have greater leverage when you receive more than one offer. You can also end up getting a higher purchase price or better terms than you would with only one offer.
Here are other benefits of setting an offer review date:
It allows time for more potential buyers to see your property.
It indicates to the public that demand is expected to be high and therefore piques interest.
It encourages buyers to act with haste.
It encourages serious buyers to make serious offers.
TIP #5: KEEP AN OPEN LINE OF COMMUNICATION DURING THE PROCESS
A negotiation is a communication process in which both parties discuss details and attempt to reach an agreement via dialogue. Communication plays a fundamental role in real estate. Strong communication skills lead to successful negotiation.
Ensure you’re communicating clearly about your price expectations and the value of your home. It’s also a great idea to provide any explanations for any changes you made whenever you deliver your counteroffer. You also have to be reasonable with your requests and put yourself in your buyer’s shoes so you can better understand his or her situation.
Ensuring that communication is effective can improve the entire process and result in a quick transition to escrow. In addition, transparent negotiations expedite the process and keep everyone on the same page.
Watch the video below and learn more about communication in negotiating your home sale:
TIP #6: SET AN EXPIRATION ON YOUR COUNTER OFFER
When a buyer submits an offer that seems unacceptable to you, you counter their offer. Doing so will put you in a legally binding negotiation with that party. This also means that you can’t accept a better offer if it comes along.
In order to sell your Waukesha WI home quickly, you may consider setting an expiration time on your counter offer. This strategy pushes the buyer to decide so you can either get your home under contract or move on to the next potential buyer.
You also have to remember that when a negotiation is underway, many buyers will be discouraged from submitting an offer. If the deal is unsuccessful, you've added time to the official number of days your home has been on the market. You know that the more days your home is on the market, the less desirable it appears. You are more likely to lower your asking price in order to get a buyer.
Consider adjusting the time frame to a period that will work best for you. Just don’t make the deadline too short. This helps move the negotiation process along faster as well as not keeping you locked in with any particular buyer for too long.
TIP #7: RELY ON KRISTIN JOHNSTON
Prospective buyers usually have a buyer’s agent representing their interests. In the same way, you should also have a listing agent who will represent yours. That would be me. Negotiating offers is where my expertise as a real estate agent will really help you.
The best thing you can do when you’re negotiating the sale of your home is to have an experienced agent on your side. Here are some reasons why it pays to have a real estate professional on your side:
1. You can maximize your profits by working with an experienced agent who is familiar with the local market and is adept at negotiating.
2. Your agent will have no emotional attachment to the home, allowing her to approach the situation in a calm and reasonable manner.
3. Your agent will have access to market data for comparable homes in your area. This is a huge advantage.
4. Your agent will be familiar with the latest market conditions. The market can change at any time. Having an agent who does a lot of sales volume will ensure that you’re working with someone who is truly “in the know.”
5. Your agent understands who your home is perfect for, and who wouldn’t be really interested. This will help determine how seriously to take offers and can speed up the sale of your home.
6. Your agent has strong negotiation skills. Real estate deals require specialized knowledge. With a skilled negotiator, you will be ensured that the process will go smoothly and that everyone will be satisfied.
Let me do the heavy lifting for you! With me as your agent, you can step back and relax knowing that your home sale is in the hands of a trusted professional.
THE BOTTOM LINE
Negotiation is essential in the sales process. However, the key to executing these negotiating strategies successfully is to ensure that you are offering a truly desirable home.
If you want to have the upper hand in negotiations, you need to make sure that your home is in excellent condition and priced correctly. This way, you’ll be able to close the deal in a way that favors you!
Call me, Kristin Johnston at 414-254-6647. Allow my skills to be your guide in selling your Waukesha WI home.
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