How to Negotiate the Highest Price in a Seller’s Market
You’re selling your house and the timing is perfect…It’s a seller’s market! You’ve listed your home and have several interested buyers. You’re certain you can get your full price offer, but can you leverage what you have into an accepted offer that is… above the list? Perhaps three percent, even five percent or more above the list? You sure can! Here’s how you go about it:
1) Be easy to work with and very helpful. Buyers tend to be willing to negotiate with sellers whom they like and are eager to help. Your agent should answer all questions quickly and thoroughly.
2) Be proactive and communicate openly with all buyer agents who have scheduled showings to date. Your agent should be encouraging as many people as they can to write an offer on your home. Your agent will let every showing agent know that your property is gaining tremendous interest and that if an agent has shown yet to do it quickly so their clients don’t miss out on the opportunity to write up their offer. Your agent will also call and email each showing agent to ensure they get the message.
3) Suggest a selling price that is way too high. This means your agent will use the power of suggestion to drive up the bidding price on your home by sharing with buyer agents how they’re surprised by the overwhelming interest in your property and that they wouldn’t be surprised if it goes for higher than list price.
4) Justify a price that is way too high. When your agent is conversing with the buying agents, he’ll share good reasons why they should write a strong offer.
5) Provide a status update to all parties once the first offer comes in. Your agent will once again call and email each showing agent to inform them how much time they have to make an offer and then encourage as many offers as possible because, with each additional offer you receive, your power to negotiate price goes up.
6) Negotiate and accept a secondary offer. Do this once your primary offer is accepted. This is a great tactic for your agent to use in case your first offer falls through. If buyer number one is informed of your solid plan B in the works, they’re more likely to do what it takes to get things finalized. A good example would be that they’ll probably not quibble about anything that shows up on the inspection, for instance.
Of course, this can all only be done with effective marketing and proper pricing in the first place. Good marketing and a proper price will draw the buyers in. Then it’s up to your agent to advocate your best interests and communicate effectively to potentially sell your home for well above list price. Ready to get listed and sold? Call me today!