Three Common Negotiating Mistakes Sellers Make
As a homeseller, the biggest issue on your mind is probably being able to achieve the highest sales price for your home. And yet, you probably feel ill-equipped to achieve this goal. Pricing a home is difficult to begin with. Market factors are ever-changing and can cause large swings that affect the price you’ll be able to get for your home. In addition, the skill of the person responsible for the negotiations can also be a determining factor.
However, negotiating effectively need not be as intimidating as you might expect! Like any other situation, there are proven systems to follow that will help you along the way to success. Knowing the right “signals” and the language of the deal can turn the negotiations in your favor.
A large percentage of homes listed do not sell the first time. That makes it more important than ever to learn what you need to know. This knowledge can keep you from making costly mistakes.
There are three common mistakes that homesellers make at the negotiating table:
Saying too much during an offer. There are really two principles involved here. First, you must know what you are legally required to disclose. Second, don’t say anything more than what is required in front of anyone who is not completely representing your interests. Think through every thing you intend to say! Anything you say can, and will, be used to the buyer’s advantage-so don’t say any more than you have to. Here’s an example: if you are reviewing an offer with both your agent and the buyer’s agent and you mention what your “bottom line” price must be, you can count on the fact that the buyer’s agent will pass this information along to the buyer. When this happens, you will likely lose the opportunity to get a higher price than the one you have stated. Remember-you don’t have to say anything in the presence of the buyer’s agent. It is quite acceptable, and good business, to ask them to leave before you discuss any of the details of the offer with your agent.
Failing to take adequate time in responding with a counter offer. Try not to feel the pressure to respond immediately to an offer which has been presented. Remember negotiation over all items, particularly price, is a critical issue. Take the time you need to respond effectively. There are times when it may even be necessary, and prudent, to get advice from your attorney. The time you need to think through the proposal, plus the opinion of an objective third party can often lead to clearer thinking and better decision-making.
Giving too much away. Many sellers feel the pressure to throw in home fixtures such as appliances, lighting, and drapery. If these items are not specifically detailed in your listing, you are not obligated to give them up at the negotiating table. Holding them back, until late in the process, can be an effective negotiating tool. They create leverage, and if you give them away too soon in the process, you lose the leverage you might have gained. Remember, there is nothing that stipulates that these items must be part of the negotiation process at all unless they are itemized in the listing, so you need not give them up if you don’t want to.
Bottom line: be aware of these and other issues which may impact the negotiation process when you receive an offer on your home. Seek the advice of experienced real estate professionals, and when appropriate your attorney, to achieve your goals in the sale of your home.
Betsy Klotz, Broker
CRS, ABR, GRI
Keller Williams Realty
864.232.0386
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