It is sometimes felt that bargaining is the same as negotiating. But do you know the difference? Bargaining is a discussion about what the other side wants. Negotiation is a discussion about why they want it. You cannot fully engage the other side in a discussion about what they want until you understand why they want it.” When it comes to selling property, and especially about negotiating the price, it is stressful for both sellers and buyers. The professional Chesterfield Estate Agents who are experts with strategies for negotiations when selling your home there can guide you.
Given below are 5 plans of action which will help with the negotiation.
Be aware and plan:
Before negotiations start, the market should be thoroughly reviewed, so that you have an idea of the buyer’s market and the asking price to ensure a profit. This should include all assets, value and alternatives, in case the deal does not go through. Research on prevalent capital values, earlier prices and current market trends is essential.
A plan should be devised, listing your objectives with areas where you want to stand firm and others where you are willing to negotiate. This will assist in keeping you in control of the situation. You can offer incentives or bargains, anticipating the prospective buyer’s response and being ready to negotiate. Build a rapport with your Agent, so that he is aware of your market knowledge and will clarify all your queries.
Reliability is an asset that earns respect and trust. Being honest about the property and the asking price can result in a successful sale. Once you reach an agreement on an issue with the buyer, do not backtrack on it. Retracting will decrease trust in you and will cause problems with other negotiations. That is why you should study each negotiation thoroughly and carefully before agreeing to it. Also, politeness and calmness of mind can help both the buyer and seller. Sometimes, negotiating can be stressful but by retaining your composure and confidence, it will help both parties in reaching a solution. At times, deals have been cancelled due to the seller being discourteous and the buyer being offended by the rudeness.
If possible, try and have major repair work completed before negotiations start. If the property is not in a good condition and needs refurbishment or renovation, buyers will attempt negotiations for a lower price since they will have to spend on the repair work. If you are unable to undertake the repair work for any reason – time or money – you may have to consider selling the house in the state that it is in, and look for a buyer who will be willing to purchase it in that condition.
Mutually Beneficial Agreements:
Although there may be issues where you have to remain adamant, you may need to try to reconsider, so that you reach an agreement that benefits both the buyer and you. This golden rule to ensure success may result in a good sale of the property.
A BATNA (Best Alternative to a Negotiated Agreement) should be fixed early in the negotiation, in case of failure of a mutual agreement. It has been described as “the course of action that a party engaged in negotiations will take if talks fail, and no agreement can be reached.” If the best alternative is a cost lower than the negotiated cost and the buyer decides on the maximum price he is willing to pay and convinces the seller, that price will be the buyer’s BATNA. Alternatively, the seller can decide to either rent out the place, or renovate it and sell it for a higher price later on.
A Closing Date:
If you are in a hurry to sell the property, you do not have to show your eagerness which can result in lower prices being offered. By stating an expiration date for offers, buyers will have to make a decision to either buy the property or move on. The timeframe should be carefully considered – not too short to put a buyer off, and not too long either. Another reason to conclude the deal at the earliest is that the longer the house remains on the market unsold, the less the asking price will be. Offering to pay closing costs could also speed up a transaction.
Negotiating for sale of a property can assist in getting the best price for it. The aim of negotiation is not to close the deal quickly and only at the amount listed, but to sell the property at a good price, which will benefit both the buyer and the seller. The above tips may help you do just that.