You’ve listed, marketed, and shown a listing to multiple prospective buyers, and now you have an offer on the property. Although it may seem that your job is done, in many ways it’s only just started. That’s because it’s up to you to get the best sales price that you can for your sellers, while the buyers will be trying to do the opposite. Here are some negotiating tips to keep in mind:
- Stress the strong points of the property. If possible, determine three key property features that justify the asking price or that make the property unique and emphasize those during the negotiating process. Have photos and descriptions to back up your position.
- Employ facts and figures, such as comparable area real estate sales and square footage price comparisons to substantiate market value. It’s more difficult for people to argue with data than it is for them to argue with opinions.
- Point out home improvements, renovations, or upgrades that have been made by the sellers that add value to the property. Offer records, receipts, or before-and-after photographs to make your point.
- Emphasize surrounding amenities or attractions and the appeal that they add to the listing. Highlight the value and convenience that the location of the property brings to the buyers.
- Avoid getting emotional. Regardless of what is said or done, remain professional, and adopt a matter-of-fact attitude during the negotiations. You’ll want to retain a good working relationship and reputation with other agents and the buyers after the negotiations end.
- Offer flexibility, if possible, in exchange for a higher monetary offer. For example, if you know that your clients could vacate the home quickly, you can float that idea in exchange for a higher selling price. Or, if you know that the sellers might be willing to part with some of the furniture or appliances, that arrangement could bring a higher dollar amount.
- Know your clients’ bottom line. Have a candid conversation with them about the lowest dollar amount that they are willing to accept as a sales price, making sure to factor in real estate commissions. While it’s always your goal to get the highest dollar amount for your clients, knowing what price they will accept will help you determine whether a contract is workable.
- Find ways to add value to the listing, such as HSA Home Warranty coverage. With HSA protection, buyers won’t have to worry about repairs or replacements for covered home system components and appliances during the one-year term of the contract. Knowing that they won’t be faced with unexpected expenses for covered breakdowns in the year after closing offers budget protection for buyers and a negotiating advantage for sellers. HSA Home Warranties also gives homeowners access to reliable, qualified service professionals for covered breakdowns, which can be a big convenience. Contact your local HSA Account Manager to find out more benefits that warranty coverage can offer for sellers, buyers, and agents.
Negotiating real estate contracts can take a lot of back-and-forth and can be stressful for sellers, buyers, and agents alike. It’s also your chance to put your knowledge and experience into action, and to show your clients that they were right to trust you with their listing. In the most successful negotiations, all parties involved feel they’ve received a good deal, which can be a very satisfying outcome for the real estate professionals involved.