Ever wonder why certain properties seem like they sell for more than the asking price? Having a good negotiation strategy in place with potential buyers can significantly help you sell your house for more. Below we explore 5 of our top tips to negotiate the price when buying or selling properties.
Have an Inspection Done Before Listing
Having an inspection done before potential buyers see your home can be extremely beneficial to get your asking price without any haggle. An inspection will usually cost less than $400 and can tell you everything in your house that should be fixed. You can then decide which items to fix prior to selling. This can be highly beneficial as you can get multiple quotes on repairs or do the work yourself. If you tend to these issues beforehand, your buyer’s inspection should come up clean and the potential buyer won’t be able to hit you up for repair costs!
Throwing in Extras to Sweeten the Deal
Let’s say someone had toured your home, commenting on how nicely everything is set-up. You are pretty certain this person is interested, however, they seem to be on the fence. You could offer to throw in additional items to sweeten the deal! The options with this are endless. You could offer a golf-cart, riding mower, kayak… you get the idea! Some buyers are looking for something fun for their new house, while others would prefer a really nice gift card. Consider personalizing the incentives based on the buyer’s interest. A simple internet search can give you a good idea about what they like or have an interest in.
Separate Emotions From the House
Before you start getting offers in the door, you will want to set your limits. Set the absolute lowest price you will accept for the house. Do not go under that price no matter what the situation. If you do not get any offers, you might have priced the home incorrectly or maybe it simply isn’t the right time. Have a backup plan in place. If you don’t get the offer that you want you may have a plan in place to rent the home out for 1 year and try again. If you are prepared with an alternative, you won’t end up selling your house for less than it’s worth. Plus, it will keep you in control. You never want to appear desperate to sell.
Facilitate a Bidding War
If you are fairly confident your house will receive many offers, you might choose to let buyers know you will be “reviewing all bids at 5 pm on Friday.” This will create a bit of a buzz. People will want to outbid each other knowing there will be competition, so you will likely receive higher offers. If your house isn’t primed to receive many offers, this strategy isn’t for you. You are better off checking out each offer as it comes in.
Get to Learn the Buyer
To help you better negotiate with a buyer, take some time to learn about them. What is their current situation? Do they desperate to move right away? Are they financially in a solid place in their life? What is their motivation for wanting to move? If they need a bigger house for their family, you can play up how large the finished basement is. Do they like sports? Talk about their favorite team. Creating a friendly connection with the buyer via banter will help your negotiations go more smoothly.
When it comes to selling your Little house, you can always expect for there to be some haggling. If you are prepared and keep yourself one step ahead, you will be more likely to get your listing price!