Don’t Make These 5 Mistakes When Selling Your Home
We are in the type of market where homes may take longer to sell, and there may be a little negotiating between buyers and sellers. Sellers, how can you avoid pitfalls and navigate your home sale negotiation successfully? First off, understand that your agent will be acting on your behalf, so start by choosing someone with excellent communication skills and emotional intelligence. The following tips will start with YOU, and end with your agent’s successful actions.
Mistake #1: Insulting the Buyer or Their Agent
It is wise for sellers to show appreciation for every offer that comes in and act in good faith. How might a seller insult a buyer or their agent? By being totally unresponsive to an offer, counter offering back to list price or even above list price, getting verbally combative when a low offer comes in, to name a few. Remember, buyers come to the table with limited information about your situation and with varying perspectives on negotiation etiquette. Neither you nor your agent should get defensive - instead, ask questions and work to understand the perspective of the other party.
Mistake #2: Communicating Too Little
When responding to a buyer’s offer with a counter offer, especially if there is a significant distance between their price and yours, it is very important for you and your agent to explain your position. Always start by thanking them for the offer. Then, avoid justifying your price by explaining that you “need” a certain price, or explaining what you bought the home for. That is entirely irrelevant to buyers. Explain in a thoughtful and clear manner why your counter offer price can be justified by recent sales and current market conditions. Include data or graphs if it helps support your case. Always express optimism that you’ll be able to make it work and that you look forward to working with them.
Mistake #3: Assuming Buyers Don't Have Other Options
Just like buyers should never assume they are the only interested party, sellers should never assume that buyers don’t have an attractive Plan B if they are not able to buy your home for a price that works for them. You and your agent should understand the motivation of the buyers. Is there another home they want to make an offer on in the next day or two? Or is this the only house they want? Your agent should be asking these questions to determine what I call a buyer’s “flight risk.”
Mistake #4: Negotiating Verbally Instead of in Writing
There is something more compelling, more confident, and much more serious about delivering a counter offer in writing. If your agent goes back to the buyer with a verbal and hypothetical price, that is what you’ll get back… a hypothetical. Not to mention that the buyer’s agent may present your verbal offer to the buyer in a way that is not exactly accurate or framed correctly. Be clear about what you are asking by delivering a counter offer with a nice cover letter that is ready to be reviewed and signed by the buyer!
Mistake #5: Burning Bridges
During the process of receiving and negotiating offers, it is crucial that you don’t burn bridges with any of the parties involved. Even if you end up focusing on one buyer, the others should all be shown appreciation and receive prompt and kind communication. When you have ratified a contract, your agent should make personal calls to all the other agents and express your gratitude for their hard work. That way, if your current buyer backs out, calling these other agents will become much easier and hopefully more productive, allowing you to get back into escrow as quickly as possible!
Happy negotiating!!!
Your Local Realtor and Cambrian Specialist,
Kirsten Reilly | Broker Associate
(408) 835-2962
