Tips on Negotiating for FSBO Homes
Negotiating with buyers is probably something you don’t do every day, but you do a certain amount of negotiating in your dealings with co-workers and family. American buyers as a rule are poor negotiators, where as the foreigner sharp their negotiating skills to a fine art. Because Americans are poor negotiators, often times they will let their emotions lead. They may get angry and walk away if you state their offer is “ridiculousâ€. Just as easily your emotions can get involved and kill a deal. The buyer may let it slip they are planning to destroy a feature of the home you are particularly fond of, maybe the garden you so painstakingly laid out.
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When negotiating with a buyer, do your best to stay away from making offensive responses when the buyer states the paint on your wall is disgusting. If the buyer notices water stains on the basement floor, tell the truth making up a plausible excuse will destroy your credibility before negotiations even get started.
Make sure your potential buyer is able to acquire a mortgage loan large enough to cover the price you are asking for your home. Don’t waste your time if the buyer is not able to get the mortgage loan needed to complete the deal.
Remember the buyer is not your enemy. For negotiations to be successful you will have to talk to him. When the buyer offers less than your asking price ask an explanation. The buyer may have checked the prices of homes very similar to yours. Or possibly the buyer has found an assumed problem with the property. What ever it is find out the reason for the lower offer. Most of the time the buyer is willing to pay something very close to your asking price.
In negotiations it is your turn to counter the offer. First let the buyer know you are taking their thoughts into consideration, but… Then you lower your asking price by a small amount with an explanation of why you are asking the price you are asking. Mainly the fact the price you are asking is in line with the houses sold in your neighborhood with the same features as your house.
If the buyer gave an offer lower than your asking price, because the buyers believes the roof needs major repairing. Let the buyer have the roof inspected at their expense. If the inspection exposes a problem, then you can offer to lower the asking price to compensate the repair of the roof.
Be prepared to be flexible with the asking price. Keep in mind the amount of money it takes for you to hang on to the property. Would it be cost effective to take an offer of about $2000 less than your asking price and wait another 2 – 4 months for the next qualified buyer?