Home Sellers: Offer Negotiations 100 (The Course Before 101)
I'm all for the Central Minnesota method of haggling. I think it comes from the fact that most of us are only a couple generations removed from the true hagglers and wheelers and dealers of the past: the farmers.
One of the biggest problems facing some of the sellers of real estate in St Cloud, MN is that they feel like they are being taken by the buyers in today's market. While it is true that your home is not selling for what it did two short years ago, you have to remember your true goal: selling your home.
Here are some tips to help sellers as they analyze offers coming in from potential buyers:
1) Try to take your heart out of the deal. The home that you will be leaving was perfect to raise your two kids back in the 80's, but it might not be perfect for the new couple raising kids in the 10's (that sounds funny). Only negotiate with market facts and up to date market values.
2) If you have a fish on the line, reel them in. You may or may not be having a second offer come in. Even real estate agents with the best of intentions cannot deliver the purchase agreements that they say they will bring tomorrow.
3) Take all offers seriously. This is tough when there is that one yahoo out there who wants to offer $90K on your brand new two story home worth at least $250K. Even though you want to just say go away (with some anger in it), it is best to just politely counter back at full price. Find out if they are interested in coming to the "dance floor" of negotiations. Who knows, they might just want to buy the house at full price.
4) Look at the bottom line, not the sales price. You might actually make more money at a lower sales price depending on what the buyers are asking you to pay.
5) If you decide to not take an offer, you are saying that you would rather stay in your home than sell it for that price. That could prove costly if you have somewhere else that you need to live.
I will hear a story about once a year that rehashes the philosophy that the first offer is always the best offer. In this case the sellers had an offer in the Spring of 2007 for $200,000. They wanted just a little bit more because their original listing agent priced them a tad too high and now they are feeling gypped. The sellers decide to counter offer back at $204,000 and the buyers decide to leave. The desire to feel like you are the winner in negotiations can make you the loser. Fast forward to the Spring of 2008. With no other offers and the market slowing down over the winter months the sellers price reductions to create activity now have them priced at $175,000. Here is where they get another offer. Disgusted but needing to sell, the sellers take the offer. Ouch.
Before you even look at the offer someone has written to purchase your home, take some time to look at your true goals. In most situations, selling the home is the most important goal. Making a specified amount of equity is usually lower on the list. From there, arm yourself with the market data you need to make the best decision for you.
Jason Tangen - Real Estate Broker Associate with Edina Realty in St Cloud MN
www.jasontangen.com - Search Real Estate in St Cloud, MN and surrounding areas
