Tips to Help Sellers Negotiate the Sale of Their Home

You've done it! Great. You have decided to list your house for sale; you have endured showings, open houses and nosy neighbors. Finally, you have an offer to purchase your house. Don't start celebrating yet. The negotiations have just begun.

Often people rank negotiation right up there with having their teeth drilled. They think that they must be super-slick and squeeze out every penny for themselves, or they will have failed.

Many times, however, this feeling of dread can be replaced with knowledge. And replacing the feeling of having to be super-slick with a little savvy and some good will often nets a home seller far more.

Know Your Market

One of the most important things a house seller must understand is what the local real estate market is doing. With many areas experiencing a slowdown and softening, a seller should be aware that there may not be as many buyers for his or her house as there once were.

If you are selling your house in a buyers' market, or a market which is becoming a buyers' market, you will have to be more flexible than sellers have had to be in recent years.

Keep Your Emotions in Check

This can be tough. After all, this is your home sweet home. It is the place you come to feel cozy and secure. It is the place where you may have raised children and hosted family and friends. Don't forget that the buyer who has put an offer to purchase in on your house has gotten that feeling from your house too. Even if the offer is a low one.

If a buyer places a very low offer to purchase your house, discuss it with your Realtor. Is the price of your house too high, and this offer is actually realistic? Is this a qualified buyer who is testing the waters, but has room to up their offer? There are many possible answers.

Try not to be insulted if you get a low offer. Let it roll off of your back and make a counter offer. Discuss with your Realtor what a reasonable counter offer may be. It doesn't hurt. If the buyer is just fishing for an unrealistic bargain, then you have lost nothing. However, they may just revise their offer to something much more realistic. Don't forget the buyer is having his teeth drilled too!

Easy Does It

When sellers get offers to purchase their homes, often they want to move very quickly. They want everything signed, sealed and delivered ASAP, so that the deal is firmly in place. That is understandable. However, sellers must also understand that the buyer is offering to pay them a very large sum of money. It is reasonable that they should be continually moving forward, but don't push them away by trying to move them too fast.

Counter the Counter

Sometimes sellers will make a counter offer and if the buyer doesn't come up to their price, they just give up. Don't do it. There will often be a few rounds of negotiations here, so be prepared for it. Again, don't be insulted if the buyers inches toward your goal.

Be Flexible

In today's slowing real estate markets the seller will likely have to be more flexible than in more recent years. As a seller, you may want to consider offering to pay part of a buyer's closing costs or paying a point on their mortgage and help buy their interest rate down. In addition, you may have to consider buyers who are going for 100% financing or are only making a small down payment. Make sure that these buyers are very qualified, but don't rule them out.

Negotiate in Good Faith

This may be the most important point of all! Real estate transactions tend to be the most successful when both buyer and seller feel that they have gotten a fair shake. If you try to squeeze every penny out of a buyer, they may become nervous and decide not move forward with the deal. Also, be aware that they may have additional bargaining after a building inspection is done. If your house is basically sound, you won't have to give major concessions. But if a qualified buyer who has made a good offer to purchase your house asks for a few small repairs, it might just be worth your while.

Remember that most deals fall apart as a result of negotiations gone wrong. Negotiate in order to get yourself a great deal on your house. But don't forget what is could be like to be on the other side. Help your buyer feel comfortable that he or she is buying a good house at a fair price and that you can be flexible if necessary.