When selling a home, the negotiation stage takes place somewhere around the end rather than the beginning, but what is important for sellers to understand is that everything done up to that point will either strengthen or weaken their negotiating position. So, starting to build your negotiation power from the very beginning is the best strategy.
We at the Martin Group have witnessed many times how powerful negotiation can be, and we make sure our clients have the right tools to negotiate from a position of power once it is time for the back-and-forth game with an offer. Here is how we make sure you have more leverage to close a successful deal.
Doing it right from the beginning: the asking price
It cannot be stressed enough how important it is to price the home right from the start. Putting the right price will give you the confidence and the power to explain very transparently why you ask for the price you ask for. Homebuyers usually appreciate fair pricing, so even if they try to get a better deal for themselves, they will probably not make an offer outrageously under asking. Pricing the home realistically tends to minimize lowball offers (which are more frequent with over-priced homes).
A strong launch with an impeccably presentable home
A well-maintained, cleaned and staged home will eliminate some of the other party’s (i.e. the homebuyer’s) negotiating powers (plus, it increases the home price). Homebuyers are always looking for something that could be wrong with a home to try to knock the price down, and your job is to give them as little reason as possible to object. However, you should always leave a little room to accommodate the buyer when they make a valid point (as no home is perfect).
Finding common ground with the other party
To come to an agreement, sellers need to know that the other party’s expectations and position matters as much as their own. The smoothest transactions are between homebuyers and sellers who show mutual respect during the process. This is the kind of relationship you should be aiming for. To do that, you will need to understand the other party’s needs and their reasons for the move.
Not only will it help you build mutual trust, but it will also strengthen your negotiating position. Understanding a homebuyer’s motives will help you gain insight into things such as: are they in a hurry to buy , do they have the needed funds to buy a home, do they need some extra time to sort out financial or administrative issues, etc. Such information can give you leverage, since you may be able to meet some of their needs, they will meet some of yours in return. Aim for a win-win whenever you can.
BATNA – one of the most powerful negotiating strategies in real estate
Using BATNA usually helps come to terms not only with the other party but with yourself as well. BATNA stands for Best Alternative To No Agreement, and it’s a term few real estate professionals fully utilize. BATNA is more or less a Plan B, and gives sellers a position of strength during tough negotiations and the peace of mind knowing there are alternatives if the offer does not meet certain predetermined expectations. Martin Group aims to prepare each client for the negotiation process and increase their negotiating power from the beginning. Working with the Martin Group provides sellers with advice that is tailored to their unique situation and the insight to evaluate each offer and negotiate from a position of strength. To find out more, contact us today.