Negotiating Goals for The Seller

What’s coming next in the home buying process is very important: you are about to navigate a legally binding contract. What are the skills required? An ability to see the technical detail and learn the talent of meeting and talking with strangers. You may have heard that the value of your home has nothing to do with its actual sale price. This is why when you have an offer, it is important that you know what you need from the sale and the minimum that you need to make off of the house in order for the sale to work. Knowing these two things beforehand can really help make your negotiation go smoother.   How to get started The first thing you will need to do is determine if you have the money needed to make the sale. Will you be paying off a mortgage? Clearing credit card debt? Making a down payment on another house? Making repairs to your current house if the buyer’s inspector finds something in need of attention? There is also the cost of commissions and closing costs and other fees that are involved including taxes and insurance at the time of closing. Can you afford to pick up a percentage of what the buyer would usually pay if it means keeping the deal together? Figure out how much it costs to live in your home each month for the mortgage, taxes and the insurance. The total of this can help you when negotiating when you are trying to decide if you should take a deal for less of the cost and enable you to get out of your current home quicker. Give some thought into the types of personal items that a buyer might ask for and make a list of things that are off limits, like your child’s play set, a freezer, a piano, or a basketball hoop, for example. Are any of these deal breakers? Lastly, know your best time for the move. Would it be better for you to wait until your kids are out of school, or do you have to leave before the school year is complete?  Knowing when to move will provide best insights into how to move. Your two lists These are a couple of examples of ways that you can apply your lists. Say that you made an offer on a home but the offer is contingent of one thing - a quick sale. Your best deal might be

• A full price offer
• A buyer pre- approved for a mortgage
• A buyer willing to waive the inspection, or to be responsible for any needed repairs if you lower the sales price
• A buyer who wants to close in 30 days, sooner if possible
• A buyer who will allow you to keep personal property

Your minimum deal might be

• A buyer who offers 7 percent below the asking price
• A buyer who agrees to close in 60 days
• A buyer that asks for the standard closing procedures. Financing, inspection and clear title contingence
• A buyer that will compromise on any of your personal belongings such as that piano or freezer you LOVE

Seller’s Tip Play it on a case by case basis and examine your circumstances so you know what you will need from any potential buyers that look at your home. This also includes the minimum sale price you can accept. Contributor James Link