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Posts tagged negotiating

8 Tips for Accepting a Bid

Sep14
2009
Leave a Comment Written by Alicia

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In today’s buyers’ market, you as a seller may be especially excited when an offer comes in for your home. Yet in your celebration, don’t rush too quickly! Remember there’s much to consider before accepting a bid as offered.

To make the process a little better for you, we’ve created a list of eight steps to keep in mind during the process.

Start the process early. Have an inspection completed right when your house goes on the market, so that whatever needs fixing gets fixed. That way, when negotiating a deal, a potential buyer can’t use a valid problem against you.

Do your homework. If a potential buyer has a concern about your asking price being too high, and has data to back them up, be familiar with the circumstances that they are presenting. Find out what homes in the area are being offered for and being sold for.

Consider all your offers. If the offer is significantly lower than your asking price, ask why. If the buyers did research and found other homes in the area to be sold at a lower price, you have a particular topic to discuss and review. If they have no particular reason, explain to them why you priced your home as is.

Take your time. You are allowed two or three days to consider an offer, so take that time to think it through. What is your home worth? Will you be making a profit? How soon do you need to move? Consider your options before professionally replying with a written acceptance or a counteroffer.

Know the financial situation. Make sure that the potential buyer has been preapproved for a loan, if need be, and find out how much they plan on offering as a down payment. You’ll save yourself numerous headaches down the road if you settle financial questions early on.

Prepare a counteroffer if you are unwilling to accept the initial offer. Usually the first offer you receive is less than what the potential buyer is willing to spend, but the final negotiation might still end up below your asking price. Decide whether you’d rather wait for a higher offer and continue to pay your mortgages, or take a lower offer and pay fewer mortgages.

Be fair. If you are dealing with more than one offer at a time, make sure the buyers are aware of this. One, it might cause them to offer a higher bid. Two, it make them aware that even if they agree to your counteroffer, you can still deny it if you receive a higher bid.

Be obliging. This is, after all, still a buyers’ market. Be willing to throw in the washer/dryer set or a lawn mower; think creatively about incentives. Find out when the buyer needs to move. Discuss financial matters to find out when and how the buyer plans on paying. Be professional and calm through the entire process.

For more helpful tips on negotiating, read this past blog.

Posted in Selling Tips, Tips and Ideas - Tagged real estate market, receiving a bid, selling a house
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The 24 Hours after a Bid

Mar12
2009
Leave a Comment Written by Alicia

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We are currently living in a buyers’ market, plain and simple. Because there are so many more homes available than buyers to buy them, sellers have to be willing to accommodate buyers’ requests in order to acquire and retain interest.

That’s why the first 24 hours after a bid could be called the most crucial.

Buyers could lose interest and move on if you don’t respectfully respond to their bid. There is a market full of other homes to distract them. This means that you must consider your options quickly and smartly.

What to keep in mind:

Hopefully you’re already keeping up with the local competition: Take note on houses for sale that are similar to yours in size and upgrades, and keep track of what sells and for what price. Remember these figures when considering your bid.

The hardest step, after receiving a bid, is to forget how much revenue you were hoping to make from this sale. If you’re forced to move to a more expensive location and you were hoping for this investment to cover your costs, it might not. Depending on how badly and how quickly you need to sell, you might just have to reconsider, reevaluate and negotiate.

Deciding whether to accept a low bid highly depends on your time restraints. If you need to move by a specific date, you’ll probably want to accept any bid you receive. If you have no time restraint and have not found a new house yourself, you can still hope for a better offer.

Find out what the buyer’s time restraints are. If you accept the bid, prepare to accommodate the buyer’s needs as much as possible. Even if you accept the offer, they could still lose interest. Be as polite and understanding as possible with them.

All of this should be considered within the first 24 hours after a bid is made. Which means, start planning ahead now. Imagine different scenarios and what plan of action you would use if they were to occur. This way, when the long-awaited bid arrives, you’ll be prepared to accept, deny or counteroffer it in a timely, respectable fashion!

Because, once again, it’s a buyer’s market. Plain and simple.

Posted in Market News, Tips and Ideas - Tagged bid, buyers' market, real estate, selling a home
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Lowball Offers

Dec08
2008
1 Comment Written by Shanna

Picture this: You’re selling your home using Buy Owner® advertising, meaning professional photographs, quality ad descriptions, gorgeous virtual tours. As a motivated seller, you get the word out, hold open houses and, most of all, price your property fairly.

Then, one day, it happens: you get your first offer. You’re thrilled! You can sell your home and move into your next one! Only problem? The offer is lower than you’d expected. A lot lower. In fact, it’s what some might call a lowball.

What should you do?

First of all, don’t panic. Don’t get angry, frustrated or worried, either. This is just the first offer, and now negotiations can begin.

Depersonalize. As much as possible, remove your personal attachments from the home. Think of it objectively as a property that you need to sell, part of a financial transaction only. (Want more advice on depersonalizing for a sale? See Buy Owner Blog article, ”Depersonalizing for a Home Sale”

Know what you need. Look at how much you actually need to get out of the property in order to accomplish your goals, whether that means how much you need to move into your next home or how much you need to turn a profit on the sale.

Do your research again. If you priced your home fairly to begin with, it was based on facts and figures of recently sold properties in the area. Before writing off this low offer, take a look at data that the buyer likely based their offer on: market conditions, area homes for sale, recently sold properties, etc.

For more information on pricing your home, see these Buy Owner Blog articles:
• The #1 Mistake of Home Sellers
• Is it Time to Drop Your Price?
• The Mistake You Can’t Afford to Make
• Why Your Home Isn’t Selling

Begin negotiating. Successful negotiation is all about give and take. If the buyer offered much less than the asking price, counter with a number a little lower than your original request. The goal is to keep the negotiations flowing, arriving eventually at something in the middle, which you can both be happy about. Remember to stay positive and hopeful, both in your attitude and in your interactions with the buyer.

For more information on negotiation, see these Buy Owner Blog articles:
• Negotiating Tips
• 10 DOs for Dealing with Potential Buyers
• 10 DON’Ts for Dealing with Potential Buyers

Posted in Selling Tips, Tips and Ideas - Tagged accepting offers, lowball, lowball offers, negotiating offers, pricing your home, sales price, selling a home
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10 DOs for Dealing with Potential Buyers

Nov19
2007
1 Comment Written by Becky

(This is part one of a two-part series.)

When dealing with potential buyers, be sure to keep these DOs in mind.

1.  DO screen callers

Ask if they are qualified and find out how far along in the process they are. Are they looking to buy immediately, or are they just looking?

2.  DO get contact information

When a potential buyer calls and expresses interest in the home, make sure to get a name and a contact phone number.

3.  DO be prepared for questions

Be knowledgeable about your home and the area. Have information about school districts, parks, and shopping. Be aware of train station locations for downtown access, etc.

4.  DO answer questions truthfully

Put yourself in the buyer’s position and remember to give the same honesty that you would want when you’re purchasing a home.

5. DO find out if they need to sell their present home before buying a new one

Is their home currently listed, and for how long? Find out with whom they are listing, and check later for information on the listing.

6.  DO ask for the prequalified or preapproved letter

Encourage them to start the loan process if they have not already done so. Explain that the prequalified letter will strengthen any offer that they make on a listing.

7.  DO get feedback from potential buyers

Find out what they like and dislike about the home, and get their opinion about the price. Buyer feedback can help you make adjustments that just might lead to a quicker sale.

8.  DO get offers in writing

Meet with the buyer in person and draw up the offer. Double-check for any mistakes.

9.  DO ask for a deposit on an offer

A deposit should always be given with a serious offer, as it adds strength and credibility.

10.  DO be friendly, fair, and accommodating

Don’t argue with buyers and don’t intimidate them. Meet with them at a location and time that is primarily convenient to their schedule, not yours.

Posted in Selling Tips, Tips and Ideas - Tagged buy owner satisfaction, Dos and Don'ts for Dealing with Potential Buyers, real estate, selling your home
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Negotiating Tips

Nov05
2007
1 Comment Written by Shanna

Think of it this way: Your effort to negotiate the best transaction from buyers begins the moment they walk in the door. Before the paperwork is even drawn up and before an offer is on the table, you are subtly giving cues that will allow them to determine an initial offer and to influence their willingness to negotiate.

Recognizing this reality and planning ahead puts you in control and affords you the most power possible in the deal. So before you show your home, before you are faced with questions, consider these important strategies:

1. Depersonalize: Selling your home is a business transaction-one of the most important ones in your life. It could be easy to let emotions, preferences or even memories get in the way of a professional experience. Don’t let this happen.

When a buyer says your custom wall color is disgusting or grimaces at your newly redone ceramic tile, stay calm.  Do all that you can to avoid offending. Although it’s something you’ve put time, effort and love into, remember that now your home is a product you’re selling. Listen to buyers’ concerns without anger and point out your home’s strong points.

2. Build rapport: Buyers today are smart. They know when you’re trying to hide something. So establish trust by being as honest as possible. Answer their questions. When a buyer notices the stained carpeting or the damaged roof, don’t make an excuse. Tell the truth about what happened and state what you can do about it.

3. Consider all offers: Even if you’re offered an amount $10K or more below your asking price, don’t immediately eliminate it. Ask the buyer to explain: Were comparable property prices considered? Does the buyer think there’s a flaw with the home? On what basis was the offer made? Knowing this information will help you decide how to respond.

4. Respond to concerns: Offer to pay for an inspection regarding major issues the buyer perceives, if you haven’t had one conducted already. If there really is damage to the roof or some other major issue, consider reducing your price by a portion of the repair cost.

5. Counteroffer: Using information on comparable properties, the current market and buyer interest on your home, evaluate a fair counteroffer. Reduce your price slightly, making it as attractive to the buyer as you can, and let the buyer know how you arrived at your new price.

Also be sure to understand your leverage in the situation. In a buyers’ market, you have much less leverage because of the great amount of homes for sale.

Compare the variation between your asking price and the buyer’s offer with what you’re currently paying monthly. If your mortgage payment is $2000, for example, it might be worthwhile to accept an offer for $3500 under your asking price, rather than hold onto the property for two more months and pay $4000. On the other hand, if your home is paid off and you are not in a rush for the money, you have more room to wait.

6. Make Concessions: Not only finances are being discussed here. Without compromising too much on your price, you can still offer helpful concessions to the buyer.

Evaluating the buyer’s motivation is a good step. Is there a job transfer causing a fast relocation? Maybe the buyer needs a quick closing. Is this a first-home purchase? Offer to include the window treatments or select other features. Based upon the circumstances, consider these options: cleaning/updating the carpeting, immediately removing the property from the market, and so on. Find out what the buyer needs and see how you can accommodate.

Posted in Selling Tips, Tips and Ideas - Tagged home ownership, offers
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Welcome to the BuyOwner.com Blog, your source for regularly updated market information!

Founded in 1984, BuyOwner.com® is the leading provider of real estate marketing services. We pioneered the "For Sale by Owner" (FSBO) market, which today represents over 20 percent of all residential real estate transactions.

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