Selling Your Home? How to Negotiate an Offer with a Buyer

Estimated reading time: 3 minutes

Selling your home is very personal. What may seem like a great offer for one seller can generate disappointment for another. With help from your Real Estate Agent, keep these tricks in mind to ensure you have the best experience selling your home!

What are You Hoping to Get from an Offer?

Negotiating a purchase is just as important for sellers as it is for buyers. Before you begin negotiations, sit down with your Real Estate Agent to discuss what you hope to achieve with the deal. While some people are focused on the monetized value of their home, there are other factors to consider as well. Do you need a specific closing timeline to ensure you have money to purchase another home? Do you have wiggle room for contingencies or concessions?

What Type of Market Are You In?

Your negotiation tactics may largely depend on your market conditions. During a buyer’s market, the supply of homes will exceed demand from buyers. These conditions may keep homes on the market for longer and may require more concessions to incentivize potential buyers. On the inverse, homes typically move quickly and sell at or above list prices when there is a seller’s market. You may be at more of an advantage to ask for more money or waive certain contingencies.

What are Some Negotiation Strategies?

When a buyer makes an offer, you have a few choices in response. You may wish to accept the offer as is, reject it outright, or make a counteroffer. Many buyers will be expecting a counteroffer if their amount is below your listed asking price.

Start Up a Bidding War

A bidding war will drive up your home’s price, often well beyond what it was initially listed for. The competition from a bidding war can inspire prospective buyers to offer more favorable sales terms, such as waiving unnecessary contingencies. Once a bidding war begins, you can create a deadline for all offers. This may inspire other offers from potential buyers who were on the fence.

Outright Rejection

If an offer doesn’t meet your needs, you can reject it. This move may entice the prospective buyer to revise the offer they initially submitted and create a new proposal that is more financially competitive and aligned with your goals.

When Should You Accept an Offer?

To figure out whether an offer is worth accepting, think back onto your original goals and ask yourself if the offer aligns with your needs. Knowing when to bring negotiations to a close is crucial because dragging out a deal could cause the potential buyer to walk away. Your Real Estate Agent will be able to provide professional insight about when to continue negotiations or seal the deal.

Reaching the Closing Table

For the best success at the closing table, work with mortgage and real estate professionals! Whether you’re planning on buying a new home, selling your existing one, or refinancing, work with a mortgage lender that aligns with your unique financial needs. Ready to get started? Contact us today!