When you begin to count several unmistakeable signs it’s time to sell your home, you’ll probably be tempted to use some negotiation tactics. While there’s nothing wrong with negotiating a home sale, what you need to avoid are strategies which backfire. Unfortunately, too often, sellers mistakenly believe certain approaches will work magic, bringing them more money from the sale. This is why it’s so important to avoid counterproductive seller negotiation tactics.
Avoid these Counterproductive Seller Negotiation Tactics
There’s no question is takes money to make money and selling a home is no different. Home sellers know this fact but still try to maneuver around costs in different ways. For instance, one common selling strategy which routinely backfires is pricing the home just above true market value. The rationalization is doing so will give room to negotiate the final price. In theory, that just might work. But in practice, the reality is completely different.
“While sellers want the highest price and buyers want the best deal, [both buyers and sellers] have to meet somewhere in the middle for the deal to close. Negotiating for a home is important since this is the largest asset most people own and there’s potentially a lot of cash at stake. For those new to the real estate dance: The negotiations start once the seller receives a written offer.” —Entrepreneur.com
What typically happens is buyers don’t search for properties over their budgets. So, when they begin searching online, that particular home won’t be listed in the search results. Worse yet, if they do see a property priced higher than comparables, they’ll know it’s overpriced and move on. When you’re selling a home, you need to do things right. That includes avoiding certain types of buyers. But, it also means having to totally avoid counterproductive seller negotiation tactics:
- Not answering with a counteroffer. There are sellers who try the “cool” or “slow” approach when dealing with purchase offers. The thinking is if they don’t respond right away, the buyers will become anxious and submit a higher purchase offer. But this leaves way too much at risk. The buyers might be offended or concerned the seller isn’t actually serious.
- Brushing off a lowball purchase offer. Okay, so it’s insulting to receive a lowball offer for your home. It’s also definitely understandable you wouldn’t relish “dignifying” a lowball offer with a counteroffer of any kind. But, you might be pleasantly surprised. If the person who submitted a lowball offer is just trying to get a steal of a deal, you’ll know that, too.
- Insisting on selling the house “as-is”. One contingency buyers regularly use to get seller concessions is through the home inspection. It’s all-too-common for houses to have problems unknown to the seller. If the home inspection turns up any issues, don’t be intransigent, because it will backfire. Either pay for repairs or offer concessions to save the deal.
- Being overly frugal time and again. Speaking of making repairs, being cheap is another big time no-no. No one likes having to spend money on a house they will no longer live in but it’s all about give and take. When you balk at nickel and dime expenses, you’ll wear the buyers out to the point of exhaustion. They’ll eventually feel it’s futile endeavor and simply walk away.
- Boasting about a possible offer. When sellers hear one or more offers are imminent, they fall to the temptation of broadcasting and boasting about their good fortune (usually to dig in on the asking price). But this not only causes confusion, it makes buyers feel they have little to no chance. In that scenario, no party will come out on top.
If you are considering selling a home in Orlando, contact us for the latest market information. We’ll also provide you with the right advice to market your house correctly to receive the best selling price.