Selling a home is a process, and knowing what to expect at each stage will help that process go more smoothly. By now you have likely found the best real estate agent to represent you, taken steps to get your house ready to be listed to sell, and may have staged your home. So far, so good. Now that your house is looking its best and your agent has likely listed it on the MLS, you can expect to have multiple appointments from real estate agents to show your home to prospective buyers (and possibly one or more Open Houses). Ideally, this will result in receiving an offer from a prospective buyer (or buyers). This brings us to the next stage: Negotiating an Offer.
As you and your real estate agent consider how to negotiate an offer, it is a good idea to revisit some of the questions we posed in an earlier article: Why do you want (or need) to sell your house? What is your time frame for selling? What price range do you need (and want)? Are you prepared to move?
The answers to these questions will help you define what you need and what you want (and where you have room to compromise). Here are some additional negotiating points to consider:
- Take the emotion out of the negotiation: Realtor.com suggests trying to view your home as a business prospect. Putting aside the emotional attachment it represents to you will help you to negotiate more clearly and effectively.
- Be informed: When negotiating, have recent comparable sales on hand to support your asking price. Also, be aware of the current lending and market conditions- Is it a seller’s market or a buyer’s market? Are interest rates going up or down? Is housing inventory in your neighborhood low or high?
- Expect to negotiate: Be prepared to counteroffer. Buyers anticipate that sellers will counteroffer, so again, knowing where you are willing to compromise (and not compromise) will help you focus your negotiating strategy.
- What’s negotiable?: In addition to the sales price, many terms of the sale are negotiable. For instance, deciding on who (the buyer or seller) pays certain closing costs may be negotiable. Timing the close of escrow may be another negotiable item. Including/excluding expensive, non-permanent fixtures can be part of the negotiation as well. The strategies are many; consult with your real estate agent to decide what’s best for you and your situation. (And, yes, the real estate broker’s commission fees are also negotiable.)
- Get it in writing: Any promised or proposed changes to an offer create a counteroffer (which requires a new or amended contract). Be sure to always put everything in writing.
Of course, sellers are not obligated to negotiate offers; offers may be rejected outright or accepted on the terms offered. Whatever the decision, your real estate agent can help guide you through it. For legal advice, however, it is always advisable to consult an attorney.
Once the final sales terms are agreed upon and the contract is signed, the transaction enters escrow. We will talk more about the “What to Expect When Selling Your Home: In Escrow” in our next article.
Investing in YOUR Future,
R.B. Haley Fine Homes and Estates
Did we miss anything? Feel free add comments below with some of your great ideas and/or feedback. Thanks for your input and please remember to share!
R.B. Haley, Inc. 12396 World Trade Drive, Suite 306, San Diego, CA 92128
http://www.RBHaley.com 858.592.4895 CA Lic#01843189/01219416