Preparing for negotiation can be a valuable asset for a seller. While it is a difficult subject for most, a good negotiator will get what they want and make sure there was no money left on the table that would have been theirs. Here are some helpful tips in the art of negotiation to help ensure you are not getting the low end of the deal.
1. The negotiation begins with choosing an agent and deciding on the appropriate commission. It is important that you base your decision not just on personality, but effectiveness. From there, know that commission is always negotiable. There is no set rate, so decide together what fair compensation is.
2. If you are in a desirable market, such as coastal San Diego, start a bidding war. Price your home competitively within 2-3% below market. This will create a buzz around your property and offers should start to flow in. You will remain competitive in the market and generate a lot of activity. This tactic involves pricing your home below market price in hopes that many offers will come in and result in a quick sale. This is one of the riskiest strategies, but can pay off in the right situation.
3. Once the offers start coming in, leave the negotiating to your agent. It is important to remain active in the negotiation, but stay behind the scenes and let your agent to their job. If no offers come in the first two weeks, even if you had many showings that means your home is over priced. Talk to your agent about possibly lowering your price a little more.
4. Get the conversation started. If someone comes in with a low offer, your counter offer should be a little lower to cause movement and show you are willing to negotiate. If it is a serious buyer they will stay and talk.
5. Remember it is not personal. A lot of times a first offer will be a low ball to test the waters and see how negotiable the price is. It is important that the seller not take it personally and get insulted, this hinders negotiation.
6. Keep it moving. The longer you can keep a buyer at the table, the more likely you are of getting a result that is satisfactory to you. When someone spends a lot of time on something they feel invested and are more likely to buy your property. During the negotiation don’t spilt the difference from the offer and the counter offer. This is bad for the seller because you are giving up too easy and leaving money on the table.
7. He who can walk away holds the cards. The power in negotiation goes to the side that has convinced the other they are prepared to walk away if they don’t get what they want. One way to do this is withdrawing the last offer. It can be risky, so only use it on someone who is grinding you away.
8. Adding a small concession towards the end of negotiation can help seal the deal. It will make the buyer think they have won. The size of the concession is not as important as the timing. It can be anything from moving a date to something more favorable to the buyer, to a piece of furniture they admired.
Nick Alameddin
Broker
C 760.802.4166
F 858.455.0100
http://www.PremiereSD.com
DRE License #01426515
If you know anyone looking to sell or buy a home, please e-mail me their name & phone number. I will gladly get them a great deal and provide them bar none service.
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