Tuesday, March 11, 2014
The negotiation process is part and parcel of every property transaction. Get tips on how to successfully negotiate a home sale...
Setting the play
The art of negotiation does not start when the first offer to buy your property comes in. It actually starts with you, as the seller, setting the stage for possible negotiation scenarios. For instance, think ahead and price your property, leaving room for negotiation and haggling. Set a price higher than what you’re willing to settle on and remebr, don’t base your selling price on the last sold home in your area either. Practice 'forward pricing' by considering the appreciation of your property.
During the actual negotiation, pay attention to the prospective buyer’s body language. Is he or she nodding or maintaining eye contact? These are good signs that the buyer favors what you’re saying. On the other hand, folded arms and averted eyes signal otherwise. Notice whether he or she is responding quickly or pausing for thought, which may signify hesitation These are subtle indications of the buyer’s real sentiments that may belie what they’re saying. While he or she may verbally disagree with what you’re saying, these body language indicators may show differently. Use these signs to your advantage and to guide you through the negotiation.
Many a buyer may ask for an unrealistic offer which is way below your initial asking price. Don’t be disgruntled by lowball offers and be tempted to split the difference right away. Know what your property is worth, and work with a counter-offer from there. As long as there is still room to negotiate the price you’re willing to settle on, always make a counter-offer. The longer the buyer spends time on the negotiation process, the more probable he or she wants your property.
Closing the deal
Use available information to your advantage. If you know that the prospective buyer is hesitant at the thought of buying furniture for the space available in the home, throw in a couple of your old furnishings to sweeten the deal. Be prepared to make concessions as you close the deal. Splitting the closing costs or even shouldering most of them may also be something you want to consider. On the other hand, if the other party is clearly not budging on a lowball offer, be prepared to walk away from the negotiations. It may be better to wait on another offer than settle on an unfair price.