While there have been volumes written about pricing a seller's home and while none of the pricing tips presented in these blog posts are new or earth shattering, it is important to restate the obvious. Although real estate agents know this information intuitively, sellers don't often realize the facts and need to be informed so they don't make false assumptions and do make an informed and factual decisions.
Tip #8: If you are obtaining semi-reasonable offers, but you are unwilling to negotiate, the market is speaking to you.
Sellers oftentimes adopt a "positioning" mentality when it comes to negotiating. While every seller obviously wants to maximize their net sales price, sellers need to understand many things, such as:
- Who holds most of the power/control?
If a home has a lot of competition, is in average condition compared to it's competition, and it is a strong buyer's market, then the buyer has much more control and power in the negotiations. You would be wise let the realities of the market guide the negotiations.
What is your true motivation for selling?
If you do not need to sell your home, you may not be very motivated to accept a lower offer. If you do need to sell (eg. divorce, job transfer, etc.), then this, too, should guide the negotiations.
- Focus mainly on your goals, not the sales price.
Having a pre-conceived sales price in mind can be a very bad idea. Everyone wants to have more dollars at the end of the transaction, but being realistic and letting things unfold while taking in information as the process moves along, can be much more beneficial than being rigid from the outset.
Focusing on your goals will help you realize what is really important in a transaction. If you desire to purchase a higher-priced home, then oftentimes, you will end up saving more money by negotiating on a higher-priced home, with the net result of the two transactions being a net gain. If you are moving out-of-state, then not having a vacant home with a 2nd mortgage, utilities, and maintenance, etc., can be a huge relief, even if it entails netting less for your home.