How to Negotiate When Selling a Home
You’ve listed your home, found a prospective buyer (or several), and have started accepting offers. At this stage of the home-selling process, you will likely want to negotiate incoming offers to ensure you receive the best return on your investment.
Before you begin negotiating, make sure you have a strong offer to start with. Here are some things to look for.
Real Estate Commission
Before even listing your home, you can start saving money by negotiating with your real estate agent on their commission fees. Traditionally, the seller is expected to cover both their own agent’s fees and the buyer’s at closing.
Crafting a Counter Offer
Once you receive an offer, you have a few options: Accept it, reject it, or make a counteroffer.
Understanding Closing Cost
Both buyers and sellers will have a plethora of fees at closing that they will have to cover. hese costs include home appraisals, home inspection, transfer tax, title insurance, outstanding bills and liens, and escrow costs. It is important to keep this in mind as you are negotiating terms and prices with your buyer.
A Word On Concession
During negotiations, the buyer may ask for seller concessions, which are contributions from the seller to offset the buyer’s costs. Concessions usually come in credits for inspections or repairs and are capped at around 6%.
Bidding War Tactic
In the current seller’s market, owners may find themselves in a bidding war. Some owners may even create conditions in which a bidding war is generated, such as listing their home below market value.
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