It’s no secret America is experiencing a real estate market in which the seller has the upper hand.
Historically low rates of homes coming onto the market have created this situation, even though our mortgage costs remain high as the Federal Reserve continues to keep the cash rate high to fight inflationary pressures.
Yet even with so many eager buyers, knowing how best to negotiate with them is crucial for sellers.
The goal of selling a home, of course, is to maximize its value – and this is especially significant for the sellers who will need to purchase their next home.
Ideally, the seller will receive several buyer offers through their real estate agent.
Generally speaking, the offers will be below the listing price. In the current market, some may be above your expectations if a buyer is keen to make a deal and not lose out to a rival buyer.
A price below the listing price could mean the buyer genuinely can’t afford your figure, or they’re low-balling to see what will happen.
Either way, the seller will likely issue a counteroffer with an expiry date to push for a quick response.
Sellers should be firm and stick with their listed price, thus confirming they realize the property’s true worth and don’t intend to be swayed by lower offers.
This firmness should be based on local sales data from the last three to six months, which indicates that the listed price represents fair market value.
However, sellers should be prepared to adjust their listed price if they want to sell quickly or feel that giving a little leeway to the buyer will seal the deal. This adjustment can include paying for the buyer’s closing costs – a common trade-off in such negotiation situations.