Negotiating Your Home Sale

As a seller, it's understandable to look for a big win. Your property is an investment, and you've worked hard on it. Negotiation is the art of maximizing your upside and minimizing your downside so the sale meets your goals.

An experienced real estate agent brings negotiating skills to the table — along with all that implies. To negotiate effectively, your agent must be deeply familiar with the market and adept at seeing others' motivations.

As the seller, however, yours is the last word. So, don't worry that you'll end up sitting back with no say in the process. When you collaborate with your agent, you have the opportunity to shape the circumstances. Sticking to your interests can be very worthwhile!

Let's take a closer look at the essentials of negotiating your home sale:

• Set the Stage to Your Benefit
  Your decision about when to enter the market makes a tremendous impact on your negotiating position. Before your listing goes live, consult with a real estate agent you trust. Find out about the pattern of sales in your neighborhood and use your agent's expertise to choose a price attractive to both you and prospective buyers.
  
  
• Establish Your Goals at the Start
  In addition to price, time is a factor that can sap your negotiating clout: You have much more power if you can afford to wait. Be honest and upfront with your agent about your goals so negotiations can proceed accordingly. This influences the approach you will take with buyers who make an offer that's less than ideal.
  
  
• Counter at Your List Price
  Buyers come into a negotiation session prepared to haggle. Their opening gambit often includes a lower offer than your listing price. By countering at your list price rather than below, you discover which buyers are serious about the property. Buyers whose finances are in doubt are more likely to retreat when they see this.
  
  
• Don't Be Afraid to Reject Offers
  An alternative tactic is to reject a buyer's offer but provide no counteroffer. This leaves the buyer to develop their own reply, which can give you valuable insights into their thinking. It sends an even stronger signal that you expect to be paid what the property is worth. Plus, you can continue to negotiate with other buyers.
  
  
• Encourage a Bidding War
  Rejecting offers might leave buyers with the impression they're competing against many others, but there's no substitute for the real thing. Refusing to entertain any offers until an open house creates the environment for buyers to know they're in competition and start off with more aggressive offers than they otherwise would.
  
  
• Use Counteroffer Deadlines
  As the seller, you can control the tempo of negotiations even if you are discussing with many buyers. If you set expiration dates on your counteroffers, you will have a better understanding of when you can expect to hear back from buyers. This also helps conclude talks faster if you receive an offer you wish to follow up on.
  
  
• Use Closing Costs to Your Advantage
  Buyers disdain closing fees, often seeing them as unnecessary "extras." By agreeing to pay closing fees, you smooth the path to a sale. In exchange, you can raise your asking price. Buyers generally cannot borrow to pay closing costs, but they can borrow a few thousand dollars more for a price change, making up the difference.

Like many things in life, negotiation sounds tougher than it usually is. Keep the lines of communication open with your real estate agent, and you can jump into the process with both feet, making a successful sale much more certain.

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