Selling Your Home - Negotiating
Is there a secret to good negotiating?
There are several cardinal
rules to negotiating effectively. One is do your homework, and learn as much
about the the buyer as you can. Another is to play your cards close to
your vest and not reveal too much information to the other party or their agent.
Don't let yourself get rushed into any decision, no matter how tempting it may
be.
How is the price set?
It's very important to price
your home according to current market conditions. Because the real estate market
is continually changing, and market fluctuations have an effect on property
values, it's imperative to select your list price based on the most recent
comparable sales in your neighborhood. A comparative market analysis
provides the background data upon which to base your list-price decision. When
you prepare to sell and are interviewing agents, study each agent's comparable
sales report (the data should be no more than three months old). If all agents
agree on a price range for your home, go with the consensus. Watch out for an
agent whose opinion of value is considerably higher than the others.
Are low-ball offers advisable?
A low-ball offer is a term used to
describe an offer on a house that is substantially less than the asking price.
While any offer can be presented, a low-ball offer can sour a prospective sale
and discourage the seller from negotiating at all. Unless the house is very
overpriced, the offer will probably be rejected. You should always do your
homework about comparable prices in the neighborhood before making an y offer.
It also pays to know something about the seller's motivation. A lower price with
a speedy escrow, for example, may motivate a seller who must move, has another
house under contract or must sell quickly for other reasons.
Do I have
to consider contingencies?
If you are a seller in a seller's market, in
which there is more demand than supply, you probably won't have to entertain too
many contingencies. But if you are selling in a buyer's market, when buyers are
few, prepare to be very flexible. Granting contingencies also depends upon what
kind of price you want to get and on the condition of your property, most
experts agree. Remember, contingencies are written into the contract and are
negotiable during the negotiation phase only.
Should I reject a low offer?
While you might simply reject a low offer, depending on the market conditions, it might make more sense to either accept
or make a counteroffer. Full-price offers or above are great for the seller, but there are other considerations involved:
* Is
the offer contingent upon anything, such as the sale of the buyer's current
house? If so, an offer, even at full price, may not be as attractive as an
offer without that condition.
* Is the offer made on the house as is, or does
the buyer want the seller to make some repairs or lower the price instead?
*
Is the offer all cash, meaning the buyer has waived the financing contingency?
If so, then an offer at less than the asking price may be more attractive to the
seller than a full-price offer with a financing contingency.
What is
the best time to sell your house?
There is no "best" time to sell per se.
Selling a house depends on supply, demand and other economic factors. But the
time of year in which you choose to sell can make a difference both in the
amount of time it takes to sell your home and in the ultimate selling price.
In general, the Prescott area market follows a nice bell curve with fewer sales in the winter and more sales in the summer. Houses sell year-round, though, so the best time is often when the timing is right for you.
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