How To Negotiate A Higher Price For Your House

Comments (12)


How To Negotiate A Higher Price For Your House

By: Neeraj Varma

Negotiation is where many FSBO home sellers really have problems. The wrong attitude or a slip of the tongue could cost you thousands. Here are a few pointers to keep you on the right path:

1.) Show interest in selling the house. In an effort to project a sense of strength many people either take an aggressive "take it or leave it" attitude, or they appear to be overly relaxed, almost disinterested. It is better to have an open mind, stay calm, be helpful.

Carefully investigate and analyze the facts. Make an intelligent response to the buyer. Being helpful makes it easier for the buyer to relax and be more willing to see your point of view.

2.) Listen carefully to what the buyer has to say. Try to learn about the buyer's needs, wants, desires, fears, frustrations and problems that need solving. This will give you the information you need to work with the buyer and close the deal.

3.) Don't let your personal feelings get in the way of accepting a good offer. Don't get thrown off by the little eccentricities of people. You may not like the buyer, but that doesn't matter. A little patience on your part could make you thousands of dollars. After the sale of the house, you never have to see him again. Keep emotions and finances separate.

4.) Use time to your advantage. If at all possible, try not to be squeezed for time. Find out if the buyer has to move in by a certain deadline. The closer the deadline, the more they will be willing to pay a little higher for a quick close.

5.) Close using the mortgage payments rather than the price of the house. You would be surprised how little the monthly mortgage payment changes when the asking price changes by several thousand dollars. You can easily work out mortgage http://www.mortgage-rate-canada.com/canadian-mortgage-calcu payments at: lators.html If you can find out income related information from the buyer, it will be easier to use this technique.

6.) Stack the benefits in your favour. Try to include several factors that can be negotiated instead of just the price. For example, you can include blinds, furniture, tools or other items to enrich your offer. Try to trade-off some of the bonus items instead of reducing the price.

7.) Create a win-win situation. If the buyer feels like they are getting the short end of the stick it will be difficult to close the deal. They have to feel like they are winning. Here's how Roger Dawson put it in his book, "The Secrets of Power Negotiating": "When you get the gold out of their teeth, that's not negotiating. That's stealing. When you get the gold out of their teeth and they thank you for it, that's negotiating."

If you follow these points you will certainly be on the right path to selling your house for a higher price. However, there are many tactics and strategies you can use or that the buyer will use on you. A little time spent on preparation can literally save you thousands.

You can learn more about how to negotiate for a higher price by handling the offer properly and other powerful strategies at: http://netman-ecommerce-guru.com/home-selling-secrets

Going through this information will take you a couple of hours, but it is most profitable time you will ever spend.

About The Author

Neeraj Varma


For FREE info on selling your house for a higher price, email: real-estate-info@getresponse.com or go to: http://www.mortgage-rate-canada.com


neerajvarma@yahoo.com

Comments

tlouise32 30.10.2006. 12:46

When building a new home can you negotiate the price of the house? I have found a neighborhood with new homes being built that I love. I know at this time they do not have a lot of new buyers. I like a one floor plain that is right in my price range. But I like a higher price elevation. It is $5000 more. I cant add any more to the cost of the home. This is a buyers markets and there are alot more home to be sold even outside of this neighbrhood.

tlouise32

Admin 30.10.2006. 12:46

You can negotiate up to the point you sign a contract.

Work out all the things you want into the contract, then offer him something like 5k less than asking, plus the add ons. You might even start lower than that, because here's what you have to remember:

The worst thing he can do is say NO, leaving you where you are now. He'll counter with something higher, but it costs you nothing to ask.

Admin

Veenita M 08.04.2007. 12:57

Is it possible to lower the house price after setting the price & signing the initial documents? I'm buying a house (to be built) by grand homes. I negotiated on a price, but now I feel like I didn't negotiate high enough. I paid a $15,000 earnest money to grand homes and realized the media room is a little too small. Can I call grand homes and ask them to increase the media room size in the price I quoted them? Is it possible to reset the price after signing the contracts? Are the resale value high in irving, tx (coppel isd)?
Thank you

Veenita M

Admin 08.04.2007. 12:57

Typically, if a builder is not too far along in their engineering work and/or material orders, they may accommodate your change request (for a price) with a penalty cost for the change.

I would suggest you call the builder immediately! Or, at the first available business hour.

Admin

tenex747 14.01.2011. 11:54

I need tips to negotiate with RealEstate agents? I am looking to buy my own place (currently based in Sydney Australia) and need some tips on how to negotiate.

Obviously there will be other people also making an offer on a property and the agent wants to sell it at th highest price possible.

How can I hunt a bargain?

Does timing matter? How should I play it when I make an offer?

Are houses normally sold cheaper through Auction or do I have a better chance buying a place through making an offer to the agent?

tenex747

Admin 14.01.2011. 11:54

The negotiations may be thru the agent- but not with the agent. Remember who owns the house and what their needs are. That will help you a lot. For instance if they need to take a long time to close and you are demanding a quick close or if they need to close very quick and you need a lot of time to arrange your loan...

A house is not a commodity like a gallon of milk. You should not judge the value of a house without walking thru it. Find the best location and house you can afford and make an offer on it.

Admin

Ryan 12.05.2012. 21:08

What will happen if the appraisal of a home that you're purchasing comes back higher than selling price? My offer was just accepted for a house (yay), but what will happen if when it is appraised, the appraisal value is higher than the price it is being sold for?

Ryan

Admin 12.05.2012. 21:08

Then you have confirmation you negotiated a good bargain. It makes no difference in the taxes or fees that you pay and it makes no difference with your financing since all of those are based on actual purchase unless the appraisal is less.

Congratulations!

Admin

NJhousecat 12.02.2006. 00:23

How do you negotiate a price of a home? If I am a prospective buyer of a home, what is usually a good starting offer to the seller of a home in terms of percentage? For example, if a house cost $100K, do I start out at 90% which is $90K. I'd appreciate any advice given on this matter.

NJhousecat

Admin 12.02.2006. 00:23

The answer to this question depends on the market. Some markets are "seller's markets". If you are in one, you will probably have to offer MORE than the asking price. You may ask your agent to provide an MLS list of homes that have recently sold in the specific area you are considering. Look at the days on market (DOM), the asking price, and the sale price. If the days on market are low, you are probably in more of a seller's market. Even so, look at how close the asking and sale prices are. Take the sales in the last 30 days for that area and find the average cost per square foot for the type of home you are considering and use that average as a guideline (new construction cost per sq ft is usually higher than resale cost per sq ft. but consider recent renovations and lot size). Always make the contract contingent upon a home inspection. There are some markets that are so favorable to sellers that buyers will waive this...I do not recommend doing that on a resale buy. Always ask the seller to give you (at least) a one year home warranty. Good luck!

Admin

Ryan 21.05.2013. 23:51

How low can the price go on a foreclosure? There is a foreclosure that I am currently looking at. It is listed REO at $699,000. In 2008 it was listed on the market for $2.4 million (I understand that the market was at a high point then). Between then and now it was dramatically decreased and went into foreclosure. Also it was purchased in 2007 for $1.2 million. I am just curious what based on averages how low would the bank be willing to drop the price, considering the house needs a substantial amount of work.

Ryan

Admin 21.05.2013. 23:51

Not sure what you mean "listed REO at $699,000"? The bank has it listed for sale at that price or that's what they bought it for at the foreclosure sale? To a great extent, prior sales values for this property are not germane to the bank's desired sale price. They will rely on the opinions of appraisers and brokers, and comparable sales in the market to make their sale decisions.

If $699k is the list price, it should indicate what they believe is a fair resale price now, plus a bit for negotiating room.

If it was the foreclosure price, it was either a "credit bid", i.e., the bank bid its outstanding loan balance, or they bid what they thought the property was really worth, typically lower than their balance. In either case, they hope someone else will bid higher than that, buy the property, and they get paid the lesser of the proceeds or their loan balance.

The best guide of fair market value is still what other comparable properties recently sold for. Start there.

Admin

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