When making purchases at the grocery store, mall, or even a local coffee shop, we’ve become accustomed to simply paying whatever the displayed price tag is. In real estate, that is not the case. Negotiation is a skill that real estate professionals practice daily and one that can mean the difference of thousands of dollars in the sale of your home.
When you receive a buyer’s purchase offer, chances are you’re going to find something that you don’t agree with. Although this is something your Real Estate Agent will help with, it’s important for you to understand the negotiation process to make sure you are confident throughout the entire transaction.
Once the offer is presented to you, you have three options: accept the offer, reject it, or counter offer. When deciding which option is best, it’s important to consider the following:
How close is the offer to the asking price? Some homebuyers will make a low-ball offer in the hopes of getting a great deal, or with some wiggle room for negotiating. Other offers may come in over asking price, to tip the scales in their favour.
Has the buyer asked you to make any repairs? If your home needs some work, consider making the repairs prior to listing or accept a lower offer and sell the home "as is." Ask your agent about the return on your investment, if you're considering doing any updates or upgrades yourself.
Does the closing date fit with your schedule? You may have already purchased your next home, so your flexibility will be limited. On the flip-side, if your prospective buyer has already sold their home, they're likely hoping to align their purchase with that date. This could definitely be a bargaining tool.
Are there any other offers? You may have already purchased your next home, so your flexibility will be limited. On the flip-side, if your prospective buyer has already sold their home, they're likely hoping to align their purchase with that date. This could definitely be a bargaining tool.
Once you've considered all of the above, you may be wondering how you can prove to buyers that you're serious about the asking price of your home, and all counter offers thereafter. If you’re feeling brave, try these tips:
Put yourself in the driver’s seat in the negotiation process by countering with your list price or just slightly below.
Reject the offer, don’t counter, and invite the buyer to resubmit. This move requires you to be gutsy, but will show serious buyers that you are confident the property is worth what you’re asking for it.
Attempt to create a bidding war by holding off on all offers until a certain date.
Negotiating the sale of your home can be a tricky and stressful time for all parties involved. Luckily, a RE/MAX agent is someone who has plenty of experience in the art of negotiation and can help you get through the process smoothly, and with an offer you are confident accepting.
The data relating to real estate on this website comes in part from the MLS® Reciprocity program of either the Real Estate Board of Greater Vancouver (REBGV), the Fraser Valley Real Estate Board (FVREB) or the Chilliwack and District Real Estate Board (CADREB). Real estate listings held by participating real estate firms are marked with the MLS® logo and detailed information about the listing includes the name of the listing agent. This representation is based in whole or part on data generated by either the REBGV, the FVREB or the CADREB which assumes no responsibility for its accuracy. The materials contained on this page may not be reproduced without the express written consent of either the REBGV, the FVREB or the CADREB.