{"id":19623,"date":"2021-11-09T08:00:00","date_gmt":"2021-11-09T13:00:00","guid":{"rendered":"https:\/\/www.zolo.ca\/blog\/?p=19623"},"modified":"2022-01-19T20:56:39","modified_gmt":"2022-01-20T01:56:39","slug":"negotiate-house-sale-price","status":"publish","type":"post","link":"https:\/\/www.zolo.ca\/blog\/negotiate-house-sale-price","title":{"rendered":"How to Negotiate the Best House Sale Price"},"content":{"rendered":"\n\n\n

Selling a home is like playing a competitive sport. The buyer is trying to get the best deal, and the seller is trying to get the best house sale price in the least amount of time. As a seller, there are times when playing hardball is the best strategy, but sometimes a give and take approach will get the best results. <\/p>\n\n\n\n

Since selling your home is one of the most significant financial transactions of your lifetime, the best way to prepare for the transaction is to sharpen your negotiation skills. Remember, the price and terms of the sale will determine your profits, so anything that helps you negotiate a better deal is useful. <\/p>\n\n\n\n

To help, here is a guide on the best negotiating techniques for selling your home.  <\/p>\n\n\n\n

How to List Your Home with the Right Asking Price<\/h2>\n\n\n\n
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The asking price, also known as the list price, is the amount of money for which you’ll sell your house. When it comes to negotiating your house sale price, it’s critical to set a realistic asking price that appeals to the broadest range of buyers while maximizing your profits<\/p>\n\n\n\n

Related content<\/p>

How to Price Your Home, Accurately<\/a><\/p><\/section>\n\n\n\n

Many variables go into setting the right asking price including the property’s location, age, size, and condition, and market conditions in your neighbourhood. Setting your home\u2019s asking price too high or too low will make it harder to negotiate the best price. For this reason, it\u2019s essential to understand the market and find the right agent before choosing an asking price.<\/p>\n\n\n\n

Understand the Market<\/h3>\n\n\n\n

It’s essential to understand the housing market in your area before setting your home’s asking price. Are you in a buyer’s market or a seller’s market? In a seller’s market, you can usually price your property higher than market value. Higher prices don’t scare buyers when their demand exceeds the local supply of homes for sale.<\/p>\n\n\n\n

In a buyer’s market, homebuyers have the upper hand. You’ll need to price your home 5% to 10% below market to attract buyers. To figure out your local market conditions, you’ll need to research. You can find local trends like median listing price, median closing price, and average price per square foot on online listing sites.<\/p>\n\n\n\n

If that sounds overwhelming, don’t worry, you aren’t alone in setting your home’s price. When you decide to list your house, a real estate agent will provide a complete analysis of this data.<\/p>\n\n\n\n

Hire An Expert Real Estate Agent<\/h3>\n\n\n\n

Selling a home can be a logistical headache without an agent.  A good agent will act in your best interest and help you choose the right selling price for your house. Pricing your home properly will get you a quick sale at a good price. Your real estate agent will also negotiate for you and manage the paperwork involved in a home sale.<\/p>\n\n\n\n

Although real estate agents charge a high commission \u2014 usually 5% to 6% of the house sale price\u2014trying to sell your home on your own is not a good idea if you haven’t done it before. Nevertheless, it\u2019s tempting, especially after seeing so many “for sale by owner” signs on people’s front lawns or the internet. <\/p>\n\n\n\n

How to Negotiate the Best House Sale Price: Step-by-Step<\/h2>\n\n\n\n

The key to getting top dollar for your home is to know the market conditions. Knowing the market will help you make smart decisions to achieve your goals. Here are some tools to help you.<\/p>\n\n\n\n

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Step 1: Pad the List Price to Account for Closing Costs<\/h3>\n\n\n\n

Remember that every party will want to give a little bit to get a little bit in a negotiation. So one negotiation strategy is to price your home based on the expected give-and-take. <\/p>\n\n\n\n

For instance, if you want a certain price-point for your home, consider listing the property for just slightly more. If the buyer is reluctant to pay that price, then offer to pay their closing costs. While this will ultimately reduce the amount of money left in your pocket, it could help soften the buyer and convince them to accept a higher price. Using this tactic will land you the best selling price while making the buyer feel like they got a good deal.<\/p>\n\n\n\n

Step 2: Organize an Open House<\/h3>\n\n\n\n

A common strategy in a seller\u2019s market is to list your home for slightly more money than nearby comparable properties. Alternatively, you can also under-price your home. Underpricing sets up a situation that invites multiple buyers to bid on your home competitively.<\/p>\n\n\n\n

Related content<\/p>

4 Strategies to Start a Bidding War<\/a><\/p><\/section>\n\n\n\n

If you choose the second pricing strategy, then you should also hold an open house. By hosting an open house, you\u2019ll give as many buyers as possible the opportunity to view your home. In addition, potential buyers may anticipate competition and submit higher bids. If you receive more than one offer, consult your real estate agent to choose the best one. <\/p>\n\n\n\n

Step 3: Choose the Best of Multiple Offers<\/h3>\n\n\n\n

If you receive many offers, don’t automatically choose the highest one. Instead, work with your real estate agent to assess the offer amounts and contingencies. Some offers may be high but have a long closing period. Others may be low but have no contingencies. Your real estate agent can help you weigh the pros and cons of all offers.<\/p>\n\n\n\n

Related content<\/p>

Dealing with Multiple Offers on Your Home<\/a><\/p><\/section>\n\n\n\n

Once you know which offer you want to pursue, you don’t need to accept it as is. Instead, consider counteroffering.<\/p>\n\n\n\n

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Step 4: Use Contingency Clauses as Leverage<\/h3>\n\n\n\n

A contingency clause is a condition that is added to a standard offer document. Contingency clauses let buyers and sellers walk away from a contract with no repercussions if certain conditions are not met.<\/p>\n\n\n\n

Here are some common contingencies:<\/p>\n\n\n\n