When you're selling your home you have to be prepared to negotiate. Buyers usually want to start their offers lower than the sales price and save some wiggle room to negotiate with you. You have to remember that there is more to negotiating the purchase contract than just the sale price. Financing terms, attached property, length of closing, home inspections, and repairs are just a few of the items that can affect the sale of your home.
As stated in the "Buyers" section of this website here are several points that buyers will try and negotiate with you. It?s best to understand each of the points outlined below and how you might want to negotiate each of them when time comes.
Price: Is the actual dollar amount for the property. This does not include the closing costs or any financing costs that you may incur. As a selling strategy, some seller's choose to put their home for sale at a price just under the market value to create significant interest. This interest usually causes multiple offers to bid which then often times increases the highest bid price beyond that of the original thought of market value. No matter if you price it at market or under market, the market itself will dictate the true value.
Closing Costs: Are the expenses to both the buyer and seller for closing the real estate transaction. This cost is separate than the actual price of the property. Generally the buyer pays the closing costs.
Cash: Cash is the primary method of payment to a seller for buying their home. It's generally in the form of a loan payment from a lending institution. However, some buyers have the ability to pay cash for your property and avoid the lending process this can often be used to negotiate your selling price down because it simplifies the closing process.
Financing: Financing is usually in the form of a loan for a buyer. Some sellers in some situations offer financing to buyer directly themselves instead of a financial institution.
Timing of closing: Is usually when the property will close and ownership changes hands. Buyers who can meet your timing needs usually have an edge over those who can not. If everything is in order ahead of time you should be able to close faster.
Contingency: Contingency is an event that must take place before the contact can go through. The buyer will remove their contingencies as you move through the transaction, loan, physical inspection, etc. The primary contingency that buyers remove is around their financing. Pre - approved buyers are more attractive vs. someone who still needs to be pre-approved because they can move the transaction along faster and save you valuable time.
Counter Offer
A counteroffer is a response to an offer. Most real estate transactions go through a series of offers and counteroffers. A counteroffer is a sign that the seller has taken your bid seriously and believes you are close to a deal.