Negotiating your Home's Selling Price

Most people prefer to avoid confrontation. This can be especially true when negotiating the price of their home. Just the word "negotiation" can send a chill up one's spine because you don't want to make a bad move that could result in a large loss of profit – or an altogether failed deal. But, there's no need to sweat. Here are some tips to help you negotiate your selling position and your home's price:

Use a realtor. Realtors will know when a buyer is making a lowball offer or taking a hard line. They can evaluate the all the offers and tell you which ones to throw out and which ones to seriously consider. Even if the offer is lower than you expected, they may be able to suggest ways to bring price up a bit. Even for-sale-by-owner properties can use the expertise of a realtor for the negotiation phase of the selling process.

Don't be afraid to make a counter-offer. In reality, all but the most naïve buyers will expect it. It's quite rare for a seller to accept the first offer on the table without making any amendments to the deal. A counter-offer can be made to include certain perks, or as a contingency of you finding a new place to live. You can use any type of condition you want (or even some that you don't really want) as a means to get some concessions from the other party. Remember, in real estate, everything's negotiable.

Offer to pay some of the closing costs for the buyer. If the offer comes in a little short, paying some of the closing expenses might get the buyer to agree to the price or terms that you want. Don't give up. There's usually a way to make the other party say "yes."

Accept offers only from 'pre-qualified' buyers. Being prequalified means that the buyer has already qualified for a loan of a certain dollar amount and thereby has the funds available to actually consummate the transaction. This is especially important if you're selling your home yourself. No one wants to spend time and effort on a deal only to find out at the last minute that the buyer can't meet the agreed upon asking price.

Hire a home inspector and pest control professional to do the required inspections. Buyers may want to deduct the cost of hiring these professionals from the final sales price. You can beat them to the punch by already having the work performed. It's required in most areas that sellers make certain disclosures to the buyer. Shouldering the added cost of the inspections and supplying the reports can be used to get you closer to your asking price. If you live in a condominium, you might also consider making available a copy of the rules and regulations for a potential buyer to review so that they won't have to pay for their own (another small point that you could possibly use later).

Be sure to ask for an 'earnest money deposit.' The deposit will help to reveal the intentions of the other party. If they're serious about buying your home, then they should have no problem giving you the good-faith money.