Now that mortgage rates could finally be easing from their two-decade highs, you are considering posting a ‘for sale’ on your front lawn. Many Canadian real estate market experts believe that now is an opportune time for homeowners to list their single-family homes or row houses on the open market, with more buyers returning to the marketplace to achieve the Canadian dream. With 41 per cent of Canada’s housing sector expected to be in balanced territory and another fifth anticipated to favour buyers, how can sellers get the best deal possible? It is all about employing the best negotiating tactics and ensuring you receive the top dollar for your house. So, how do you get what you want from the sale? Let’s take a look at various negotiating tips for sellers.
Negotiating Tips for Sellers: Getting What You Want
Here are seven negotiating tips for sellers:
- Pick a Real Estate Agent
Some sellers think they can go alone when listing their home for sale. While it is doable, it is not recommended as this process can be arduous and complex. Collaborating with a real estate agent who is knowledgeable about the local real estate market and has your best interests at heart is imperative. Sure, you could save a few bucks by selling independently, but you will need to consider the legwork and paperwork necessary to sell your home.
- Don’t Accept the First Offer
Should you accept the first offer presented to you? Many housing experts recommend against this, especially if it is below your asking price. Typically, there is a back-and-forth between buyers and sellers. So, here are two ways to engage in the process:
- Make a Counteroffer: Make a counteroffer with a higher price but still underneath the listing price. You want to appear flexible and willing to participate in a spirited negotiation to close the deal.
- Request a New Offer: You can reject the buyer’s offer without providing a counteroffer. However, you can request the individual to submit a new bid. This will convey to the other party that you are set on the property’s listing price. Additionally, the buyer will either resubmit with a higher offer or the same (or lower!).
- Establish an Expiration Date
Should you decide to hand over a counteroffer, it is highly recommended that you slap an expiration date on this offer. This will potentially speed up the process and push the buyer to make a decision sooner rather than later. Of course, you do not want to make it a short deadline, but enough time to allow the other party to participate in the thorough decision-making process. Typically, it is said that the default expiration date should be three days.
In addition, experts purport that you should disclose whether you are involved in negotiations with other prospective homebuyers. This creates a more transparent negotiation and conveys that you are an honest seller willing to work out a reasonable price.
- Do Home Repairs Beforehand
On the one hand, home repairs can bolster the price tag. On the other, you can defer any costly repairs to the buying party and lower the listing price. That said, it is best that you conduct a thorough inspection of your home and create a to-do list to determine what needs to get done. By doing this, you can estimate how much it would cost you or somebody else. Since finishing the repairs by yourself can increase the price of your property, it would be best to complete the repairs before listing your semi-attached home or condominium suite.
- Staging Is Key
Staging is a vital part of marketing efforts. Staging is a great way to show prospective buyers what the place could look like, from placing furniture that can place the best light possible on your home to cleaning up the front lawn and backyard. In addition, real estate agents are more than likely to create a marketing plan, meaning they will snap photos and record videos of the listing for buyers to see on a website.
Some staging tips to sell your home faster:
- Perform a deep clean.
- Declutter your home.
- Depersonalize the key living areas,
- Give your walls a fresh coat of paint.
- Shed plenty of light in your home.
- Bolster your curb appeal.
- Think About Potential Concessions
Will there be concessions? Most definitely.
As noted in the previous part, possible repairs could be a facet of concessions. Ultimately, it will depend on the degree of these concessions. A whole host of factors will have a role in this part of the negotiation process, from how urgent you are to sell your home to what some of the dealbreakers could be for you. It is crucial to work with your real estate agent to determine what kind of leverage buyers might think they have.
- Should You Pay the Closing Costs?
In today’s market, closing costs can account for as much as four per cent of the purchase price. Often, buyers will ask the seller to cover their closing costs because they might not have enough funds to pay for this part of the deal. The solution? Well, there are two. One, you can reject this request. Two, you can accept paying the closing costs, but you might counter the proposal by raising the purchase price.
Final Thoughts
Let’s be honest: Both sides of the transaction will employ negotiation tactics. While you do not want to take pages out of The Art of War, it is crucial to be mindful of what will occur during the buying and selling processes. With enough knowledge, professional guidance, and a competitive pricing strategy, you can ensure and remain confident that you will obtain the deal that you want and what is best for you and your family.
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