Negotiating the Sale of Your Home

Watch on your mobile device >>

Any advice on negotiating?

Be patient, know your home's worth, adopt a positive attitude, and do not let emotions - anger, pride, greed, or prejudice - get in the way of negotiating the best deal.

Your home obviously means a lot to you, but you have already made the decision to move on, so begin to think of your home as "the house" or "the condo," instead of "my home."

When reasonable offers come along, take them seriously. You can always counter any offer made by the buyer that comes near your asking price. Do not spoil a good deal over a few hundred dollars.

How do I respond to a low-ball offer?

First, do not get offended.  First seek to understand why.  Also ask the agent if the buyer was shown comparable market values of similar homes that have recently sold in your area; and ask if the buyer was ever properly qualified. You do not have to settle for less if you are priced realistically and getting consistent showings that rate positive feedback.

Do I have to consider contingencies made by the buyer?

You can reject, accept, or counter any offer that is presented to you. Most offers include contingencies, which protect the buyer in case something goes wrong.

The two most common contingencies deal with financing, which makes the sale dependent on the buyer's ability to obtain a loan commitment from a lender within a stated time period, and an inspection, which allows the buyer to have a professional inspect the property to ensure it is in good and well maintained condition.

There really is no reason not to consider these contingencies because they are quite reasonable and standard. However, think twice about a contingency that is predicated on you making expensive home repairs, such as a kitchen renovation.  Now, if the roof is caving in, that is an entirely different story. You may need to spend money to replace it or lower the asking price of the home.

Can the seller also include contingencies in a contract?    

Yes. For example, if you decide to sell your existing home first before buying another one, you can negotiate a lease back of your home for a specified time gap, like say a week or a month. Some sellers opt for this contingency to avoid a double move, such as moving to a hotel or rental until your new home is ready if you can’t close soon enough to plan a back to back closing. However, there is one problem with this type of contingency: it can inconvenience the buyer, particularly if his own home is in escrow. He may not be willing to wait for you to move.

This strategy has a better chance of working when the market is relatively strong, your home is a rare find, the price and terms of the transaction are very favorable for the buyer, or the buyer is in no hurry to move.

1 comment:

  1. We've handled a lot of automated call distributor calls and we've experienced a lot of different personalities. That's why we have to train well and know what could be the possible answers for them.