how to negotiate the best price on your property
Getting the best deal when you're selling your house
When you're selling your property you will have two prices in mind - the price that you want for the property and the price that you need for the property. Anywhere within this range is negotiable as far as you are concerned. The same is true of the purchaser - they have their own price range in mind when looking for properties.
The seller wants to make as much profit as they can whilst the buyer wants to get the best deal for themselves. Negotiation is required to get to a figure that you're happy with. Selling your house yourself means you get to do the negotiation yourself and not to have to rely on an estate agent to do it for you.
Whilst for some this may seem daunting, it actually has a number of benefits associated with it and is a skill that should be developed if you want to sell your own property again in the future.
Detach yourself emotionally from the selling process
One of the main things to remember during negotiation is to seperate the emotional aspects of the sale from the financial ones. It's easy to let personal feelings or emotions get in the way of trying to negotiate a fair price between both parties. The buyer won't value the emotional aspects of the house the same way that you do. You have to be objective about the house rather than subjective.
When the buyer puts in an offer for the property then this marks the start of the negotiation. Even if they put in a ridiculously low offer it means that they are interested in buying your property which is a good sign. Usually the offer is made by telephone. When you receive the offer (whatever it is) tell the buyer that you'd like a little time to think about it and you'll come back to them in 24 hours.
You can now do one of three things - accept it, reject it or make a counter offer. If you reject it, do it pleasantly (remember to be objective) and explain the reason why you're rejecting it. Remember that this may not be the end of the negotiation - the buyer may come back to you.
If you make a counter offer it demonstrates to the buyer that you're willing to be flexible but don't want to give your home away. Counter offers may go back and forward a few times before an agreement is made.
Caveat Emptor - choose your buyer carefully!
Remember to choose your buyer carefully. If you have a number of people interested, check whether they have sold their own property and whether they have the financial backing to buy your house. Do they have a mortgage in place or are they cash buyers? These are questions that can be asked during the negotiation stage. Another thing to remember when negotiating the sale is never to reveal your lowest price to anyone. Tell them to make you an offer but don't tell them what you'd go down to.
Be wary of agressive buyers. They will ask lots of questions during the viewings to try to understand how desperate you are to sell. They'll also put low offers in to try to shake you up so don't negotiate with them on the spot. Tell them that you'll get back to them. The best type of buyers are emotional buyers. They'll fall in love with the property and buying their new home will be more important to them than saving money by a low offer. They will also want to complete the purchase quickly to prevent anyone else buying the house and may even offer the asking price right from the start.
However you choose to negotiate, please remember to detach yourself from being emotionally involved with the sale. If you can't do this then ask a friend or relative to handle this and mediate for you.