The key points for a seller, according to Zillow.com:
- A full price or higher offer
- A pre-approved buyer
- Smooth timing for a move
Sellers may also want buyers to either waive an inspection or be responsible for any repairs.
Before negotiations, the best idea for sellers is to carefully calculate what they need from a buyer:
- The minimum amount of money you’ll need, considering the outstanding mortgage, any debt you want to clear up, or money for a down payment on another house.
- Decide what personal property you want to go with the house and what you don’t want to include in the deal.
- Know how much it will cost to stay in the home during any transition time. This can help in negotiations since a buyer who wants to quickly take possession might save you money. Or, on the other hand, a buyer who will work with you on timing might be preferable.
These considerations can help you choose between offers. Key idea: Know exactly what you need and don’t rush into a deal if you don’t have to.
Key points for buyers:
One key idea to remember: Don’t start negotiations too low.
Case in point: Heirs are selling a 40-year-old home on wooded acreage. The home will need treatment for mold, new carpets, deep cleaning, and some new fixtures, but the bones are good. The sellers have priced it on the low-end for comparable homes. The listing agent quickly gets two offers. One for $5,000 less than the list price, and one for the list price. It’s October and the heirs want to sell quickly. They don’t want to take the chance of maintaining the home through the holidays when home sales are slow. The buyer offering full price is ready to move in immediately and agrees to do so. The sellers accept the full price, rejecting the lower one without negotiation. The unsuccessful buyers lost the home they wanted over a mere $5,000, which on a 30-year loan amounts to just a few dollars a month.
According to credit.com, going in with a too-low offer accomplishes nothing. While a potential buyer can’t always know how their offer will be accepted, it’s probably not a good idea to offer a lower price if the property is already priced reasonably. The exception may be a foreclosure or a slow market when sellers might be highly motivated to sell.
If a buyer can know how motivated the seller is, then that influences negotiation. A buyer that must move might accept a lower bid, especially if the buyer can take possession immediately. Similarly, a buyer with time can afford to wait for the best deal.
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