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Sale Negotiations: How to Get the Price You Want

<img src="https://cdn.sanity.io/images/3023m6wi/production/42e5b54966a819ef4149713a11a63963b0b8a8e0-1200x800.jpg?rect=0,62,1200,675&w=1200&h=675&fit=crop&auto=format" alt="Sale Negotiations: How to Get the Price You Want" />

Sale Negotiations: How to Get the Price You Want

Negotiations are one of the most important and nerve-wrecking parts of the process of selling your property. If you’ve never done a negotiation before, it can be really intimidating taking the initial steps.

But don’t be too worried - here are some tips and tricks you can use to position yourself well for negotiations and get the price you want.

Put yourself in the buyer's shoes.

You want to find a middle ground between the price you want to sell your property for and the price that the buyer wants to pay for it. Sometimes the initial offer will come up shorter than what you had expected. Don’t be perturbed! That’s how negotiation works.

negotiation

Imagine if you were in the buyer’s position, what would you be willing to pay for the home? Would you disclose this figure off the bat? Probably not. These things take some time. The best response as a seller is something along the lines of: “Thank you for your offer, but it’s too low. Can you improve it and then we can discuss?”

Counter with your listed purchase price.

After the interested party has made their first offer, it is expected that you, as the seller, will respond with a counteroffer of a price that is higher than theirs but still below the offer that the property is listed for. This is called a ‘back-and-forth’ negotiation, and it’s a strategy that does work and is effective at getting the property sold. If you are after a top-quality sale on your home though, this is not necessarily the best way.

Try countering the offer by sticking to the listed purchase price, instead of dropping your price. If you have given your house a fair listing price to begin with, negotiating with this move will show buyers that you know what your property is worth and have the intention to get the money you deserve. Buyers who are genuinely interested in your property will likely come back with a better offer.

At the same time as pushing for the price you want, you can’t be too picky with your buyers and dismiss them based on their first offer. Remember that if there is a first offer- there will be a second, and its best to negotiate in a manner that will keep them interested rather than risk the buyer losing absolute interest. This type of strident negotiation technique should be used in circumstances where you have an upper hand and an encouraging amount of interest from potential buyers.

A variation on this technique is to offer a counter price that is slightly lower than the listed price (example, $1,000 lower) which will indicate that you are looking for a higher price but not completely inflexible.

Think of the buyers’ offer holistically.

There are other factors that come along with the price of the property. Timing is a big consideration for buyers. They might be considering if they can settle quickly - have they sold their previous home yet or are they in a more flexible position?

Keep your options open.

Once you’ve found a buyer, that’s fantastic! But there is still a number of processes that must be completed before the deal can be sealed. If your buyer has not yet carried out a building inspection, or had their finances approved, then it is too early to cease marketing your property and seeking out more potential buyers. One of the most commonly used sales tactics is to try and create a bidding war between interested buyers by making them feel as if they don’t offer a higher price on the property they will lose out to another buyer. However, we do not recommend this.

The best way to make sure this process is done well and fairly is by keeping all the buyers well clued in to how the negotiations are going. By letting them know you have an interested party you are also opening the door to them to top your existing buyer’s offer. It’s a win-win!

If you practice these tactics and have a set goal in mind before you enter negotiations with a buyer, then you will be in a much stronger overall position to get the best price possible on your property. Good luck!