Real Estate Matters
By Elisa Jo Eagan
For some sellers, the negotiation process is a chance to duke it out with potential buyers, while for others, it is a nail-biting source of anxiety. In order to plan for and weather the process successfully, formulate a game plan with your agent and determine ahead of time what your goals, priorities, and expectations will be.
Define a successful negotiation
Success is primarily dependent on your goals and the goals of the buyers. In many negotiations, a win-win is both desirable and possible. In other cases, the negotiating parties have widely varied interests, and it is more difficult to come to a conclusion that is satisfactory to everyone. To maximize your chances of a successful negotiation, remember that flexibility is the key.
Why not go it alone?
While many sellers feel that they are strong negotiators, it is a different proposition to negotiate with your own property and finances. Emotions can take over during even the most trouble-free negotiations, and it is easy to say or do something to undermine your negotiating position when you are caught up in your own personal perspective and feelings.
One of the main reasons for engaging a real estate agent or broker on your behalf is to benefit from their expertise in your market and to allow them to bring a dispassionate, professional perspective to the negotiation for your sale.
Low inventory market
In many areas, low inventory may mean that you will have an easier time selling your home. It may mean fewer days on the market and can mean a higher price paid for your home as well. This is certainly a wonderful position to be in as a seller, however, it is important to remember that your home will still need to appraise for the sale price in order to facilitate financing for your buyers.
Your real estate professional will keep track of market conditions as they change and help you use the most relevant comparable sales to price your home properly for the market.
Factors other than price
You will first need to check with your real estate professional to ensure that the price you need is supported by comps for your area. Once they have helped you set this price and you are sure that it is appropriate, it is time to think about the other factors that will come into play during your negotiation.
You may be able to offer a quick closing if you are able to move shortly after agreeing to an accepted, signed contract. This may be especially desirable for cash buyers who will not have to wait for financing and will be able to close more quickly.
When are the negotiations over?
In many ways, the negotiations are just starting when a home is under contract. Following the home inspection, there may be a negotiation regarding needed repairs identified by the inspector in order to obtain the certificate of occupancy from your town. Depending on your municipality, this may vary.
Should the appraisal on your property come back at less than the sale price agreed to in the contract, there may be another round of negotiations for the difference. You may choose to lower the price to the appraised value, the buyers may choose to add cash to their offer, or you may split the difference, giving a little on either side.
For real estate information and advice, contact Elisa Jo Eagan, the “Real Estate Godmother,” at 609-703-0432. Learn more at www.TheRealEstateGodmother.com.
For More Real Estate Questions, Information and Advice Contact Elisa Jo Eagan “The Real Estate Godmother” (609)703-0432 and Remember…”There’s No Place Like Owning Your Own Home!”
