Oahu Home Sales

Negotiate The Best Deal And Close Your Sale

You’ve been handed an offer. It’s so close to your desired price, but not quite there.

What now? How do you negotiate your way to the deal you’re looking for?

If you’re using a REALTOR®, they will guide you though the negotiation, providing support documentation and other helpful back-up to justify your price. But if you’re going it alone, you will have to hone your negotiating skills.

The first step to a successful home negotiation is when you priced your home to begin with. If you set a fair asking price, you should have the confidence to justify it.

If you overpriced your home (remember… “so I can come down in the future”), you will have trouble convincing a bona fide buyer to up their offer.

Now, the second step for negotiating is to KNOW THE BUYER.

Years ago a real estate expert told me that the party who is less motivated almost always gets the better deal. The ONE single element that will determine how well you negotiate your offer is…

How MOTIVATED Is The Buyer, And How MOTIVATED Are YOU?

And if you’ve been trying to sell your home for nine months, your kids are late for starting school this year because you haven’t found a home yet, your spouse has moved on to another city to start their job, and you now have a bona fide offer, YOU may be very motivated to sell!

Nevertheless, here’s a tip you MUST bring to any real estate transaction…

Move Heaven And Earth To AVOID Emotional Attachment To The Transaction

If you’re desperate, or if you found another home, and can’t hold back your excitement about buying it, then you’re going to get clobbered when negotiating your current home’s sale.

And that’s one reason why you need a REALTOR® representing you during any transaction. The middle person alone will help save you money.

So take a look at your BUYER. Pay attention to their comments and body language when they’re visiting your home.

 Did they make positive comments when viewing your home?
 Did they come back to visit your home at least three times?
 Did they make positive sighs and other body language when walking through your home?
 Here’s an important tip: TAKE NOTES about the features buyers like about your home. Then, turn the features into Lifestyle Benefits of living there to “wet their appetite.”

If a young couple looks starry-eyed because they feel they’ve found their dream home, YOU will most likely have more negotiating power. Clearly, THEY are more emotionally motivated.

So you decide to make a counter offer to your buyers. Make sure you back up your offer with FACTS…real reasoning. Show examples of similar home sales in your neighborhood. Look at the notes you took by observing the buyers, and REMIND them of the features and benefits they like about your home.

You may go back and forth several times before arriving at a price. But remember, if a buyer comes within 3% of what you want for your home, you’d better think hard before turning it down!

Once you’ve agreed upon a price, you should call in the help of a professional, such as a real estate attorney. If you have a REALTOR®, they’re usually trained to handle further items for negotiation, and have excellent contract forms that have been tested for years.

But remember, NEVER sign a contract until you completely understand ALL of the terms and conditions. A lot of real estate “mumbo-jumbo” can make you feel overwhelmed. Using a real estate attorney or a REALTOR® can make the process easier for you.

OK, you’ve now arrived at a sales price. You’re now about to enter into a new phase of the transaction: ESCROW and CLOSING YOUR SALE.

If you’re using a REALTOR®, they will be worth their weight in GOLD with the next phase of the deal (if they haven’t already saved you thousands in pricing, dressing, and negotiating your home).

Here’s a list of items you (or a REALTOR®) needs to handle:

1. Opening of an Escrow account with a reputable and affordable escrow/title company.
2. Examination of Title of the home, and the purchase of title insurance to protect against any flaws or deficiencies in clear title.
3. Coordinating the completion of contract requirements: Home Inspections, Termite Inspections, Seller property disclosure statements, etc. – with reputable inspectors.
4. Verifying buyer financing is secure (this one is HUGE!).
5. Ensuring any contingencies have been completed: Remodeling, repairs, etc.
6. Ensuring any hold-backs or reserves are met.
7. Coordinating cleaning and maintenance that may be stipulated in the contract.
8. Handling any other special contingencies that may arrive up to the final hour.

It can be an awesome task. Don’t take this process lightly. If you’re going it alone, make sure you get educated, and use a real estate attorney if you’re not using an agent.

Now, at this point, you’re probably wondering how on earth you’re going to handle all of these tasks all-the-while maintaining your job…

…packing your home
…interviewing moving companies
…getting the kids in school
…coordinating repairs and cleaning
…stressing out about the new job, or community
…and searching and buying a new home.

It’s absolutely daunting, and you will need all the help you can get.

That’s one reason why I wrote this 8 part blog: To help you sort out the important issues that translate into a Top Dollar and Hassle Free sale of your home.

So check back tomorrow for Part 8 of 8…….Aloha, Jon.

This entry was posted on Friday, November 21st, 2008 at 8:25 pm and is filed under For Sellers, Updates. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.