Okay, so you’ve decided to sell your Lincoln-Woodstock property…you need to ask yourself how much do you really know about negotiating a real estate sale? The professionals at Loon Mountain Real Estate Company can help you to potentially keep thousands of dollars in your pocket at closing. Let us share with you a few key tips which will make you a better negotiator:
1. Negotiations start when you choose a real estate agent to represent you through the sales process. You need to choose an agent who represents your interests, not their own. That agent should be backed by a visible, well respected and results oriented company whose marketing plan is the strongest in the area. Don’t choose just on personality, but effectiveness.
2. Ask for more than you would ideally like to get. Once you have a number in mind, aim a bit high (but not prohibitively high) from what you’d be comfortable settling on. No brainer, maybe, but you’d be surprised how many sellers miss this opportunity. Aiming high gives you the potential to maybe just get that number; it gives you some obvious wiggle room; and it creates the opportunity for a “win-win” negotiation which is critical for a successful closing.
3. When pricing your property…the second step of the negotiation process after choosing a Loon Mountain Real Estate Company agent…work with your agent to consider not only what the most recent comparable properties have sold for, but also consider market conditions. If the market is growing exponentially, determine what that annual growth percentage number is and when the last comparable home sold. Multiply the comparable price by the growth rate, and multiply the result by the portion of the year since the comparable sold. Then figure that growth into your asking price.
4. As the offers start to come in, the best advice is to stay behind the frontlines in the negotiation. You, as the seller should maintain an active role, but from behind the scenes. By “appealing to a higher authority”, your agent can best negotiate on your behalf.
5. If you receive an offer which you feel is well below your asking price, do not dismiss it automatically. Although low, if the offer is still reasonable and has some merit, get a dialogue going. If you get a conversation started and move on your asking price just a little bit, you’re telling that buyer that you’re willing to negotiate, but you’re not desperate. That little bit of movement will more often than not entice the buyer to try to work with you and counter with a more realistic offer.
6. Remember, the negotiation process is not personal. In many instances the first offer from a buyer will be a lowball offer. You can’t blame them for trying as they just want to make the best deal possible for themselves. You too want to make the best deal possible for yourself, so don’t be insulted. You need to decide if there is any merit to the offer, and respond to it based on its merits, nothing else. The quickest way to short circuit a negotiation is to take things personally.
7. Keep the conversation moving as time is a key element of negotiation. The longer the negotiation goes, the better chance you have of making a deal. Be willing to make concessions as the result of the negotiation needs to be a “win-win” for a deal to happen. Concessions don’t always have to be made on price…they can also be made on terms such as financing, timing, including personal property, etc.
8. Don’t automatically offer to “split the difference”. It’s tempting to just offer to split the difference between the offer and counter offer, but in most cases you will be leaving money on the table. Never entertain any offer to split the difference early in a negotiation, but if the situation does ultimately arrive where it may make sense, never be the first to offer to split the difference, but encourage the buyer to be the one who suggests it.
9. If you are willing to walk away from the deal, then you have the upper hand in the negotiation. Just as the negotiation is not personal, it should also not be emotional. Of course you will not be able to completely remove emotion from the process, but practicality, resolve, and reasonableness need to dictate the bottom line.
Now that you are an expert negotiator, contact an agent here at Loon Mountain Real Estate Company to assist you in putting your skills to work for you. There is no doubt that we are currently in a Seller’s market here at Loon, a situation which has not occurred in many years. If you have been thinking of selling, there is not better time than now. We look forward to hearing from you and to being your Realtor!