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Negotiation
Strategy
Strategies
are interchangeable. Unlike the horse, strategies can - and do -
change in the middle of the stream. The buyer fires the first salvo,
by reason of the offer they make, trying to establish their strategy.
The seller reacts: he can go along with the buyer's strategy or
shoot back a counter-strategy.
Musashi said, "There is timing in everything." Timing
can be critical in negotiating. Keep this in mind.
Also, remember my "Undeniable Truth of Real Estate No. 7":
'The
buyer or seller you've been working with will not be the same person
when it comes time to negotiate.'
So if you feel nervous or pressured, you're normal!
Chris
Furgerson Seller Negotiation Strategy
For
lack of a better name...this is what I recommend as a strategy about
80% of the time: try to determine what the market value of
your home realistically is. Then stay above or as close to that
figure as you possibly can while negotiating.
Let's
face a few facts, then review all of the pricing information later in this guide:
1.
Most buyers will want to negotiate down some - so it's ok to have
your price a little
higher than market value
2.
When an offer is presented to a seller you have 4
options: accept as is; reject; make a binding counter-offer; or,
make a non-binding counter offer indicating
to buyer what you may be willing to accept. Now, the buyer's offer
is binding to
the buyer
the minute the seller's acceptance
of that offer is delivered back to the buyer. However, if the seller
changes anything
on the offer the buyer is relieved of any obligation to buy the
home.
3.
If the buyer makes an offer too far away from the your bottom line
you have nothing to lose by making a large counter-offer back because
you won't sell at that price. However, the closer
their offer is to your actual bottom line, the more you have to
lose
by changing the offer and possibly losing a good, qualified buyer.
4.
If your home is priced right - and the buyer WILL know whether it
is or not - they'll think twice before making a low offer because
if they know its a good price, so do others. And they won't want
to risk losing the home.
Much of this strategy depends on how you price the home. Price
it as close to what you want out of it and you'll get it. Price
it too high and it won't sell. |
