What are the top negotiation strategies to help me get a better price?
The difficulty of your sales negotiation truly depends on the attitude of both you and the buyer. You want to negotiate from a position of strength but keep in mind the quickest way to get a good offer is to think win/win.
Following are several strategies depending on the type of buyer you have:
|Buyer Type||What they do||How to respond|
|Fair Buyer||This buyer wants to buy a property and is not out to take advantage of you. They start the negotiations about 5 -10% below asking price.||Up their cash offer by 5% and eliminate as many contingencies as possible.|
|The Nitpicker||This buyer wants to negotiate every detail of the contract – sometime even after closing. Their goal is to wear you down and get the lowest price possible.||Be very careful of any of their requests and have them do the work.|
|The Over payer||Because this buyer is uninformed about the condominium market prices they offer more than you expect.||Take the offer and eliminate as many contingencies as possible|
|The Overprotected||This buyer has a contingency for everything. They are generally not serious buyers||You want to stay away for this type of buyer if at all possible. If their offer is the only or best one you have received, be sure to eliminate as many contingencies as possible.|
You should always try to negotiate from a position of strength. To help you do this keeps in mind the following:
Know your lowest price: What is the least amount you are willing to take for the condominium? Be sure to back out all of the potential cost that are incurred when selling – such as brokers fees.
What motivates the buyer: Why does the buyer want to buy your condominium? Try and find out – many buyers’ brokers will tell you if you ask.
Have your property inspected before it goes on the market – then present a seller disclosure form with your listing sheet. This way you know what you might be asked to fix before you get an offer.
Work through your agent: Your agent specializes in the process of negotiating and is working for your best interest. Avoid talking personally with the buyer. If they do contact you – say as little as possible and refer them to your agent.
Keep the buyer waiting: After an offer has been made, wait as long as possible before responding unless there is a acceptance contingency.
Stand in line: Make sure your buyer knows that other buyers are actively interested in you home. This puts pressure on them to move things forward.