buyer speak first.
DON’T MEET IN THE MIDDLE
Even in the simplest of sales transactions, agreeing on a price often includes “meeting in the middle.” For instance, a buyer speaks first and offers to buy an item for $350 when the seller is expecting to sell for $400. Most will split the difference and counteroffer $375. Instead, keep the splitting point in the seller’s favor by counter-offering $420, so that the midpoint is now $400. The buyer may take the offer or end up agreeing to $405, which is slightly more than what the seller planned to ask for. Maximize your negotiating advantage by counter-offering in small increments. Avoid following your inclination to “meet in the middle.”
DO NEGOTIATE WITH DATA
Hiring a great real estate agent who will push to get the best price for your home is invaluable. You need an agent who will negotiate based on real data and not perceived worth. When negotiating, it’s important for you and your agent to be experts on the listing but also to be knowledgeable about the buyer and their level of motivation. You have to trust your agent to keep your level of motivation private, but know that agents are human, and they do share camaraderie with each other. Be open and honest with your agent, and discuss the importance of confidentiality. As a seller, using the comparative market analysis (CMA) to negotiate a price is a sound practice. A CMA is not an opinion or an emotionally based guess—it is based on fact. Your price must be justifiable, and your agent should be competent in performing the CMA. Buyers’ agents will attempt to sway the seller’s agent, if the seller’s agent is not knowledgeable enough.
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