How to Negotiate the Price of Your Home for Sale

Selling a home is a huge financial and emotional decision as they have to consider a lot of things and factors before letting go of something they’ve cherished for so long. In fact, one of the many things sellers have to think through before listing their property for sale is the price range. At the same time, they have to know how they would justify the price so they can get their target revenue.

It is estimated that by the end of 2022, U.S. home values will climb to about 2.9% as rising mortgage rates take some steam out of the market. With a thriving seller’s home market and amid rising mortgages, it’s still a great time to negotiate home prices with buyers. However, it would help if you also considered some factors to adjust your negotiation approach accordingly.

Here are a few helpful tips for negotiating (or justifying) a better price tag when selling a home:

1. Know which price range is reasonable.

Doing your research makes a huge difference in knowing how better to negotiate a reasonable price for your property. Having your home inspected by a professional can also help you obtain your benchmark in pricing before hanging that for-sale sign on your property. In addition, you must consider your property’s location, its accessibility to central establishments like schools, hospitals, and supermarkets, the level of security in the area, and the prices of homes or properties for sale nearby.

It’s also essential that you know your bottom line financially to negotiate better since you’ll have a realistic wiggle room to go up when your property gets competitive bidders or to go low when you are not in a seller’s market. Besides, your overall finances help determine the buyer’s mortgage rate, so it’s a great way to confirm your property’s value.

2. Be prepared for haggles and counteroffers.

Real estate negotiations could be uncomfortable for both sellers and buyers. There will undoubtedly be much back and forth between the seller, agent, and buyer before they land on a compromise. Sometimes it could get even more challenging when the buyer is also looking at another property.

In such cases, providing a counteroffer could help. It serves as both a rejection of an offer and a new offer for home sellers and buyers. Home sellers expect buyers to haggle and bring down the price. In fact, most sellers price their properties higher than their value to compensate for negotiations.

Making counteroffers is not new in real estate transactions. It gives the seller and the buyer the chance to haggle realistically and reach a compromise. It takes patience to negotiate with home buyers, so you don’t have to be aggressive, especially about the property’s non-negotiables. Potential purchasers may ward off if the seller adopts an aggressive attitude. Always converse in a professional demeanor when trying to justify or negotiate your home price.

3. Agree to shoulder some closing costs

Many Americans are still trying to bounce back from the financial struggles the pandemic has brought. Your property may likely sell faster once you agree to some closing costs to facilitate the deal. Consider this tactic as a deal sweetener and a better way to close the chapter of your old home. Closing costs vary from state to state. For example, in Florida, the average buyer’s closing fees would roughly come to $4,200.

Offering to shoulder some or all of the closing costs gives you more power not to lower the asking price for the property, so it’s still a win for the home seller.

4. Set a deadline for your offer or counter offer

Is time on your side with your proposed home sale, or are you eager to sell your home? If you have some time on your plate, you are in a better position for negotiation. If that’s not the case, expect the ball to be on the buyer’s court. If possible, aim for a flexible closing date for better negotiation on the deal.

If you want to sell your home quickly, then put an expiration date on your counteroffers. This way, potential bidders will be compelled to decide and act on your offer, leading to a deal. As a general measure, one to three days is the customary time limit for a buyer’s counteroffer. However, sellers and buyers are free to ask for additional time to consider an offer or counter offer.

Understanding things from a home buyer’s point of view can help you negotiate better. Be willing to walk away when buyers try to cut you short from a great deal on your house. Negotiating in real estate can be intimidating, but knowing what to expect makes the process less frightening.

5. Set your emotions aside.

Selling your home could be an emotional experience for you, so you must be truly ready to sell the property before setting a price tag and searching for buyers. In fact, you also have to set aside any emotional aspects you have for the property when pricing it and negotiating its price.

Unless you are selling a vintage home or a beachfront property, any sentimental value should not be attributed to the selling process. Potential homebuyers will not care about the memories you made in that home. What’s important is that they envision themselves living in the house to secure a deal.

Get a Free, No Commitment Offer from Shorefront Investments

Shorefront Investments has been acquiring properties in various locations for several years now without commissions or additional fees. We buy homes in any condition within 7-14 days (or sometimes less), which means you don’t have to spend time, money, and energy on repairs or refurbishments.

If you want to make a proposal about your property, please schedule a meeting with us by calling (850) 713-4866 or filling out this cash offer form. We will schedule a viewing and provide a free, no-obligation, real cash offer within 24 hours upon viewing the property based on current market prices and demands.