A little negotiation goes a long way when you’re selling a home. Savvy real estate investors take the time to do their homework before selling a property. When negotiating a sale, here’s what you can do:
Let the buyer think they’ve won. Negotiation is all about the perception of strength. When you quote a price to a buyer, start high. Even start the bidding at a price higher than you’re comfortable with. You might get lucky and make more money than you expected. But even if you don’t, you have created bargaining room. Drop the price in small increments over the course of negotiations. The buyer will pat themselves on the back for talking you down from the initial offer, and you’ll see profits higher than you initially expected.
Choose the right real estate agent. Customer service matters. But in the real estate business, warm personalities result in few deals. A nice-guy real estate agent may be a pleasure to work with, but savvy real estate investors look instead for a firm and forceful negotiator. You may not want to take your agent out for coffee, but an honest, no-nonsense negotiator will net you a better deal in the long run than someone who’s afraid of ruffling feathers.
Use your home’s location to your advantage. A desirable location can be turned to your advantage. Selling in a market everyone wants to get into means you can charge a premium for your property, even if it needs work. It also means you can play buyers off one another. A property in a great location that is priced reasonably may be used to generate a number of bids. Savvy sellers can then solicit matching bids from a pool of interested buyers, driving up the price.
When selling a home, determine your negotiation strategy before you walk into the room. Doing so will maximize your profit and satisfy your inner deal-maker.
