Get The Asking Price With These Negotiating Tips For Home Sellers
Do you like to bargain? Or are you one of those people who pay the asking price? Unfortunately, not all people are gifted negotiators, and it is a difficult skill to acquire. It is even more critical when it comes to the real estate business. Home sellers have to be sharp and develop a selling strategy like a chess player.
It is not random that we know as the ‘art of negotiation’! Professionals in every field practice negotiation skills almost daily, and real estate agents are very good at it. However, you must understand how to negotiate well to ensure the transaction is carried out to your satisfaction. Some tips can help a home seller approach the transaction with more confidence and better results. It can also lead to more significant profits while selling your home.
Why Do You Want To Sell Your House?
Even if you love your home in Alberta with all your heart, there are some circumstances in life when you may have to decide to sell it. All your savings may be tied into it, but if there is a good reason, then you must do it in such a way that you benefit from it. It could be because
· You find your house small or inadequate.
· The location of your new job is not suitable
· You may want to move to a quieter/ busier area depending on your needs
· Children leaving for college
· Planning for retirement
· If you want money for other projects and want to downsize
· Personal situations like divorce or death of a loved one
· A financial situation like loans or credit
· Is this a short sale?
How To Proceed
Once you decide to sell your home in Canada, you have to make it known to potential bidders using advertisements, agents, or word of mouth. It is just like advertising for a small business. Soon, you will start getting offers. How to proceed with these offers? You have three options
· Make a counteroffer
How do you decide what to do? It would be best if you considered some essential points to get more clarity
· The difference between the asking price and the offer price
· Does the buyer want you to make any repairs?
· Are the loans approved?
· Is the closing date fitting with the schedule that you have?
· Do you have any other offers?
· Can you wait for other offers?
Once you assess these questions carefully, it will give you the needed clarity to start with the negotiating process. You can take the help of an advisor or an agent as well. It would be best if you made the people understand your seriousness about your asking price. As soon as you get an offer from a buyer, you can do one of the three things
· Grab the driver’s seat in the negotiating process and counter with the listed price or just a little below that
· Reject the offer and don’t counter with any price. It will give the bidders an indication that you are confident about the listed price and the value of your property
· If you have time, then you can hold all offers and treat them like a bidding war.
Knowledge of Market
To secure a good deal in Canada, you have to know whether you will carry out negotiations. How to sell your home at a reasonable price will mainly depend on how well you know the market. An advisor or an agent can make you aware of the latest local trends and business transactions. You should be mindful of the details regarding your home and be able to negotiate the best price. You may find many tips about getting the right price for your house and how to advertise, etc. But there is not much information about carrying out the negotiations. One must learn to be flexible without compromising on the asking price. If you refuse to give in even an inch, chances are they may walk away, leaving you with your house which you wanted to sell. Here are some pointers for beginners that can help while you negotiate with a potential buyer.
1. Consider All Offers Seriously
Even if you are being offered a lesser price in Calgary than what you asked for, don’t feel offended. Remember that in a business, any offer from a potential buyer shows intent and interest. You must realize that a buyer will not put the best offer upright upfront. When they make the first offer, generally, a second offer will follow. It would be best if you also considered other factors which are a part of the offer, apart from the price, like
· How soon can they settle? By cash or cards?
· Is their mortgage through?
· Have they sold their old home?
· How flexible are they?
· Can they arrange building inspection quickly?
Be careful, and before rejecting any offer, see if it works for you in any other vital aspects. Some people may come with student loans or still in college and may not be in a position to offer a deposit, but they may be a good fit. Getting the right price is necessary but not at the cost of other things.
2. Keep All Potential Buyers In The Final List
So, you are happy with the way negotiations are going and confident that you have a buyer in Calgary. However, until a deal is sealed in a business, it is better to keep all the bidders up to date. Sometimes a buyer faces problems at the last minute, like not getting the financing approved or building inspection not going through, and the deal may fall through at the last minute. It is similar to applying for a student loan and not getting it at the last minute. It would be detrimental to turn away other interested parties even before signing a deal with one. Having other buyers to fall back on if one sale does not go through is considered a good strategy. At the same time, it is essential to keep the other buyers interested, and for that, you have to keep them in the loop. It is better to be honest and let them know about the deal that you are in finalizing. Place all cards on the table. Mention that you will go ahead with the agreement, pending contracts, and if the personal loans do not go through, you will get in touch. You will not waste any time in finding a new buyer if the deal falls through. Remember that sometimes, the star of a match is sitting on the bench at the start of the game!
3. Don’t Let Ego/Pride Stop You from Negotiating
We know that your house is your pride and joy, and you have an emotional bond with it. You and your family have so many memories of your life attached to the house, and selling it could not be easy. Whatever your reason, it could be to put your child through college; once you have decided to sell your home, you have to professionally go through the process. If you let your pride hinder the negotiating process, then the whole deal may backfire. Many times, during building inspections, some problems may arise. If you treat it like an ego or pride issue, you will lose the buyer and affect the price negatively for future deals. Remain a best student and learn the process. As a policy, keep your emotions in check till all the papers are signed. Bringing your ego or pride into a professional deal may do a lot of harm. This goes for any small business in any field.
4. Make Negotiations Happen
Negotiations in any business don’t happen quickly and need time. The comfort of both parties is essential for the best negotiation processes. Sometimes the negotiation process ends even before it starts.
· When the seller or buyer says no to an offer and walks off
· When the seller or buyer says yes, but does not show any signs of negotiating
· The seller reduces a small amount from the asking price and says that he is ready to accept it.
Put yourself in the shoes of the buyer and behave like an advisor rather than a competitor. If you find the offer price too low, ask the buyer for a better offer but don’t leave the negotiation process. Ask the buyer to raise the price. Open lines of communication, as it accounts for the negotiation process to go on and give it a chance to save to a final deal. Even if it is a short sale, you can get a reasonable price. Give time to them to think and reflect.
5. Learn When To Keep Quiet
‘Silence is golden’ adage is true in life and also in the negotiation process. When a buyer is about to put an offer on the table, and you blurt something unnecessary, it may just end up blowing the deal. For example: if the buyer offers a price and you don’t like it, then you should say, “thanks, but it is too low. Can you make a higher offer?” Now keep quiet and don’t give any numbers or amount, and don’t try to explain why you find it low or the reasoning behind your pricing. Keep your cards close to your chest. Even when you make a counteroffer, don’t add any but, because, or, if only to your statements. People need some time and peace to think things through. All critical decisions need some clarity, and by continually talking or interjecting, you may confuse the person buying, even making them walk away.
6. Set A Fair Listing Price
It is the sign of a strong home sellers’ position when you can list a fair price for your home as a seller. Before beginning a negotiation, you must learn as much as you can about your property and share this information along with tax details in the listing accounts. By being honest about your home, you can enhance your negotiating power. It is the same with car insurance. Some sellers get a home inspection done even before listing the property to get a clear picture. It gives the seller time to take care of any major repairs and other such issues. A seller can either fix the issues or lower the rates at the time of listing. Buyers always prefer honesty while negotiating and give more value to your words. A fair price also attracts more serious bidders who look at all details closely before making an offer. If the deal seems good, you can offer to pay the closing costs.
7. Be Thorough In Your Preparation
If you list a high price for your property in Alberta, it will lead to failed deals without evaluating it properly. It would be best to consider factors like location, size, condition, and local real estate prices. A real estate agent can help you with this information. If you want to do everything on your own, you must research and get as much information as possible. If you can collect all the useful information, then only you will be able to set a reasonable price for your home. It will increase home sellers’ chances of getting a price as close to the listed price as possible.
8. Playing Tough
Negotiations are all about giving and take, and compromises are typical from both sides. However, anticipate some stiff back and forth. People typically offer lower rates than your listed price and even much less than what they are willing to pay. They may have taken loans. It would be best if you made a counteroffer and bargain until you are satisfied. An acceptable policy is to make the counteroffer slightly lower than your listed price but much higher than their offer price. If you have priced your house reasonably, then you will be in a stronger position while negotiating. By playing hard, you also ensure that non-serious bidders are filtered out. One slightly risky tactic is to put an expiry date on your counteroffer, which will make the buyer respond quickly. However, if your house has been on the market in Alberta for several weeks, then you may have to use some other tactic. If you are sure that it is a seller’s market, then drive a hard bargain. Just like when you buy life insurance, you don’t grab the first offer but spend time to consider all options.
9. Put Yourself In The Buyer’s Shoes
The best way to negotiate well with home sellers is to know what the other party is thinking. Unless you are a mind reader, there is no way you can understand what the potential buyers are thinking. However, if you put yourself in their position, you may understand their point of view better. Learn as much as you can about the buyer, from personal information like background, family, job, etc., to financial information like a mortgage, personal loans, car insurance, credit reports, savings, etc. Credit or insurance companies can help with this.
Before starting the actual negotiations, talk to the bidders and see what they have to say. They may want to pay with their cards. Spending even short amounts of time with them can give you a lot of information about them. Some can get loans quickly, while others cannot. Being a keen observer is crucial to becoming a good negotiator. If you are a good face reader and can decipher body language, you will make for a good negotiator in any business.
10. Counter Offers
Though you may understand the term correctly, it is another issue to use counter offer as a negotiation strategy. After a buyer makes an offer, you have a chance to make a counteroffer. How to see if it is an appropriate counteroffer? You neither want to scare away the potential buyer, nor do you want to sell your home for less than what it is worth. Evaluate the buyer’s offer to see if it seems reasonable. Choose to respond according to the offers you get with a flexible approach. Investing in a real estate agent can help you with tax and other formalities. Once you counter a buyer’s offer, he can accept it, make another counteroffer, or reject it. It is a buyer’s market, or a seller’s market will play a massive role in the negotiation process. Investing in a good strategy in a buyer’s market will be different from a seller’s market; you will have the upper hand.
Real estate negotiation requires careful handling and investing of time. As a negotiator, your focus should not only be on the financial gain but on offering something reasonable and acceptable. Only when both parties come to the negotiating table with an open mind can a good deal be worked out. If one party becomes too obsessed with their perspective and wants to get exactly what they wish to, negotiations may stall or even break down completely. As a home seller, you have to be clear about
· Why you want to sell
· How much money do you expect?
· How much money are you ready to accept?
· How much time do you have?
· Are you looking for any specific type of buyer?All these points will give you an edge while you start to negotiate. Home sellers will not find dealing very difficult if they understand the process and use the right strategies. As a home seller, it is your right to negotiate and get the best price for the most valuable asset that you possess in Calgary, Canada.