Hiring a real estate agent to sell your home doesn’t guarantee that there won’t be any mistakes in your negotiation strategy. An experienced and skilled real estate agent in Fargo, ND will help you to be prepared for evaluating offers and negotiating with buyers and their agents, however, you shouldn’t drop your guard just because a licensed professional is by your side. You should discuss what kind of a negotiation strategy the agent has planned to ensure a quick and successful closing.
Here are a few common negotiation mistakes that you should watch out for:
Mistake#1: Believing that bidding wars are always a great thing to happen
You will probably jump for joy if you receive multiple offers and see buyers competing to purchase your home. While a bidding war will probably ensure that you get the highest price for your home, it doesn’t always guarantee a successful closing.
Bidding wars can actually trigger a lot of confusion among competing buyers. If you take too long to respond, buyers may not want to wait and withdraw their offers, particularly if they are considering other properties.
Even if you are getting multiple offers, ask your agent to evaluate each one of them. You shouldn’t accept an offer just because the buyer is promising a few hundred dollars more. The buyer should be financially capable to close the deal and be at least pre-approved from a lender.
Mistake#2: Going to the negotiation table unprepared
Your negotiation strategy should be determined by the condition of the real estate market in your area. If homes are staying longer on the market due to lack of demand, it means you are dealing in a buyer’s market. The buyers will have an upper hand on the negotiation table. Ask your agent to be a bit flexible and creative when negotiating with buyers and their agents. You can offer incentives such as paying for the buyer’s closing costs to sweeten the deal.
Mistake#3: Being stubborn even when you have received a strong offer
Even if you are selling in a seller’s market, it doesn’t make sense to be arrogant and stubborn. Playing hardball all the time can cause you to disregard a great offer.
Let’s say for example a prospective buyer conducts a home inspection and wants you to pay for a few minor repairs. If his or her offer is strong, bargaining over these repairs can cause the buyer to walk away. The same is true for other minor issues such as the choice of closing date and what stays and what goes with the property. Put yourself in the shoes of buyers and try to avoid conflicts that can threaten the deal to fall through.
How you handle negotiations will have a great deal of impact on your home selling experience. Have a negotiation strategy prepared even before you list your home, but also be ready to adapt and evolve it in accordance with the response and feedback you receive from buyers.