Home Sellers Guide

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How do I negotiate the sale?

The negotiation of the sale can be the most stressful part of the sale process. It's especially difficult when you bring the seller, who has emotional attachment as well as certain financial expectations, together with a buyer, who feels no emotional attachment and is often focused simply on paying the lowest price.

Sounds like a tricky situation?

It can get worse. Let's say an offer is placed on the table, and you, as the seller, feel it is too low. Now what do you do? You swallow hard and offer a higher price, right? The buyer says, "It isn't worth that much, especially since the place needs a lot of work." You feel your face growing red and hot.

You just renovated the kitchen last year, painted most of the inside of the house and put a new roof on the garage just two summers ago. Are you now the best person to try to negotiate the sale of your home? Think carefully before you respond; it could be the sentence that either sends the buyer storming out the door, or opens the floor for more constructive discussion.

As a private seller, it might seem impossible to respond to this buyer's last comment. It is very awkward to negotiate face-to-face, especially when you're selling your own home; the place that's more "you" than any other thing you own. You've picked out everything; paint, wallpaper, colors, furniture, roof, windows, landscaping. And, now someone says it, "needs to be redone." You may be thinking to yourself, "This buyer is just difficult. The next one will be much easier, nicer, more like me. He'll just love this place." Right? Maybe not.

In fact, most buyers look to renovate and change the home they purchase to reflect their own individual personality. To leave their own "imprint." This buyer is not unique. In fact, his comments are typical. If you were a Realtor®, you would not have become offended, or red-faced. You would have been through the negotiation process many times before - probably would have been able to quickly overcome the buyer's objection and proceed negotiating to get the best offer possible for the seller.

Without a professional, you'll have to reach down deep to find the words to say, "Well, maybe it needs some changes to reflect your personal taste, but we did make the following improvements over the past two years, and these are known to increase the assessable value of the home. Would you consider raising your offer to..." You might have to think about it. Especially if you're still steaming inside, but your Realtor® will not. He or she will just continue negotiating on your behalf. And, when the buyer is ready to make a real offer, usually in writing, spelling out the terms and conditions, your Realtor® will be there to explain it carefully, and aid you in making an informed decision.

Buyers' Brokers

In addition to Realtors® who work for the sellers, there are licensees known as "Buyers' Brokers." A Buyers' Broker represents, and is compensated by, the buyer. Today, many purchasers are represented by a buyers' broker. They handle all of the tasks associated with the purchase, including negotiation. They work for the buyer, not for you. Their job is to get the best deal they can for the buyer. If a buyers' broker or agent wishes to show your home, he or she will first disclose that he or she is a buyers' broker. This gives the seller notice that this agent is not working in the best interests of the sellers, and the seller should use caution in giving information that could be used to the buyers' advantage. When dealing with a buyers' broker, be aware that you are dealing with a professional. It is always best to have competent representation for yourself and let a Realtor® negotiate on your behalf, especially when another professional is involved.

Reprinted from "How to Sell it Fast & Get the Right Price", by Laurie J. Bloom
(c) 1998, Multiple Listing Service of Long Island, Inc. All Rights Reserved.
For your free copy, contact your local MLS office.