Homeowners can sell their homes in many ways, including accepting cash offers from cash home buyers, such as Cream City Homebuyers. They can also market their homes through agents who sell to mortgaged buyers. Unfortunately, unlike cash home buyers, homeowners cannot extensively negotiate with mortgaged or financed buyers because the selling price depends on approval and inspection reports.
Negotiating when selling your house can prove challenging, whether it is your first or tenth time selling a home. Initially, sellers held the upper position in the real estate market. However, market changes occasioned by increasing house inventories and high mortgage interest rates have made the market a buyer’s market. While there are many things to consider when selling your house, the following negotiation tips are crucial if you want a better deal.
1. Create a Bidding War
You should do everything possible to create a bidding war with potential cash buyers. Ideally, your selling price will surpass the initial listing price if you have two or more cash buyers interested in your property. Unfortunately, creating a bidding war successfully isn’t easy in the current real estate market with increasing housing inventory.
However, you can easily achieve this, especially if your property is in good condition and retailing at a fair market price. The best way to trigger the bidding war is to price the property slightly lower than the market value. This will attract more buyers, resulting in more cash offers. You can also introduce a deadline for all offers made on your house.
2. Counter Your Listing Price
Potential cash buyers will most likely give a lower initial bid than your asking price expecting back and forth negotiations. In most cases, sellers drop their counter-offer higher than the buyer’s offer but below the listing price to avoid losing the sale. While this shows flexibility and willingness to negotiate and close the deal, it won’t earn you the best dollar.
Instead of lowering your list price, consider sticking to your initial listed price. Cash buyers interested in the property will remain engaged and increase their offer. If you’ve priced the house fairly, countering your initial list offer means you understand the property’s worth.
3. Know When to Accept an Offer
Even though bidding wars and haggling with cash buyers benefit sellers, knowing when to close negotiations and accept the offer is important. Dragging the negotiations for long can turn off the potential buyer. Pursuing and insisting on the highest quote can backfire in many ways.
You should review all terms carefully to determine when it’s time to close the deal. Ideally, not all cash offers are good, and homeowners should read through the fine print to identify various red flags. For instance, you should check the cash buyers’ contingencies for buying the house.
Negotiating your property’s selling price is as important as it is for cash buyers. You shouldn’t necessarily improve your property value to control the direction of the sale. These negotiation strategies, coupled with fair pricing and inviting as many cash buyers as possible, are important for a better deal. You should also take quality photos and market your house extensively.