You’ve received an offer, maybe multiple offers, on your house. That’s great! But what do you, the seller, need to know now?

Since selling a house is one of the largest financial transactions many of us will ever be involved in, it’s important to know how to evaluate and negotiate offers. Is the offer “good”? Should I accept it, reject it, counter it? Should I negotiate with the buyer?

To answer those questions, it’s helpful to think about what you hoped to accomplish when you decided to sell your house and then ask yourself, “Does this offer meet my goals?” If so, terrific! You’ve got yourself a deal. If not, you still have options. You could reject the offer outright, perhaps prompting the buyer to make a better offer, or you could counteroffer.

Before you begin negotiations and crafting a counteroffer with your Realtor, it’s smart to consider the following points:

• Be crystal clear on your priorities. Be honest with yourself and your Realtor. Sit down with your Realtor and have an open discussion about your wants and needs. Do you want more money? More or less possession after close? A faster or slower closing period? Fewer contingencies? Whatever the case, if you clearly identify your goals, you’ll know when you’ve hit them and the negotiation will go more smoothly.
• Understand leverage. Leverage can be defined as power or effectiveness. To negotiate effectively, know how much negotiating power you have. Much of your negotiating power will depend on your local market conditions. If you’re in a buyer’s market, you may have to make concessions to secure a deal. If you’re in a seller’s market, you may be able to ask a higher price or remove certain contingencies. Your negotiating power also depends on your timeframe. If you’re not in a hurry to sell, you can negotiate more aggressively.
• Know yourself. Negotiating anxiety is real and not all of us are suited to the shark tank! Don’t have nerves of steel? Not an aggressive negotiator? That’s okay. Confer with your Realtor – he or she can help you objectively assess your position and determine a good negotiating strategy.
• Be prepared for the process. When you make a counteroffer, the buyer can accept the new offer, reject it or make a new counteroffer. Do your best to remember this is a business transaction and keep your eye focused on the goal – negotiating a contract for the sale of your house that meets your needs.

Negotiating an offer is one of many steps in selling your house. Click here for our Step-by-Step Guide to Selling Your Home or contact us here. The experienced Realtors at Cornerstone Real Estate Co are skilled in real estate deal-making in both buyer and seller markets and we’d love to help you!