Taking the FSBO route? The “for sale by owners” sign is usually a dead giveaway to buyers that an amateur is selling the house. However, that’s not the case! Before you make the final touches and put your house on the market, it’s important to do a thorough research on buyer patterns and real estate negotiating market to understand what kind of situation you would be dealing with.
In short: you need to master the art of negotiation. Remember, the buyer will try to play hardball, which is why you can’t show any weakness. In the horde of buyers, you will obviously pick the one who is offering the most cash. The question that presents itself next is, “How will you handle the negotiations now?” While websites such as buymyplace.com.au give you the opportunity to sell your house easily, you still need to know the basics of negotiation.
Following are some tips that will help you breeze through the negotiation process:
Prepare Your Comparisons
The first thing you will need to present to the buyer to prove his low-ball offer are comparisons. Comparisons are your neighbouring houses that have the same house structure down to the negotiating foundation. The price of these houses is usually used to prove to the buyer that the asking price is not above the margin. If the buyer comes with a counter offer, you can present these comparisons during negotiation to prove how your asking price is competitive.
One action that shows you as a sympathetic person is your attitude towards the buyer. Do you know why the person is buying a house? Why not inquire about it. There can be numerous reasons such as the buyer is expecting a baby and is looking for a bigger house, the couple might be getting a divorce or they are taking the responsibility of an elderly member who will be living with them permanently. Your job is to connect with the buyer on these points and figure out how you can market the house to your and their benefit.
Kick the Tires – Offer Incentive
Every buyer comes shy of agreeing to your asking price. What should you do in a situation like this? Kick the tires! This euphemism comes from checking your car’s tires quality by kicking them with your boot. Extend this inspection to your house too by getting a home inspection. Answer all the questions honestly negotiating on the paper and offer incentive in the form of repairs or a warranty. This will make the buyer more open to the negotiations.
Play it Cool
As a seller, it’s your job to get some emotion out of the buyer. At the same time, you need to keep a poker face. If the buyer agrees to your asking price right away, don’t start over thinking negotiating into why the deal was closed so quickly. If the buyer senses weakness, he will retract his offer and will come back to the table at a later date with a low-ball offer.
While negotiations call for “keeping your cool”, it’s important to understand that sellers need to play the real estate field strategically, so that buyers don’t sense any weakness. Every seller loves multiple offers because they make negotiations all the more fun. Still, keep your eyes on the price i.e. “a high profit” and always come to the table prepared.