If you are planning to sell your property, it is important to understand that some of the biggest mistakes in a property transaction occur during negotiations. Let us take the example of Anmol Saha from Kolkata, a first-time home seller. When Saha put his house on the market, he witnessed a flurry of enquiries from buyers. The response made him believe that he would be able to sell the property at a good profit in a very short time. However, unprepared for negotiations and unaware of the market dynamics, he remained adamant at his price and ended up missing on several good offers.
“Sellers often fail to understand that the aim of negotiation is selling the property at a good price rather than just closing the deal at the earliest or at the exact amount you want to recover from the sale,” comments Narender Kumar from Legend Realtors. While one cannot expect to become an expert negotiator overnight, here are the top suggestions by experts that can guide the seller to get the best deal:
Be aware and in control
Staying abreast of the market dynamics, current capital values, past price trends, and prevalent market trends can help a seller plan for the negotiations. Kumar advises against offering any leverage to the buyers that he may use against you, such as your reasons for selling, any financial issues, or the deadline by which you intend to close the sale. Avoid desperation when dealing with buyers as appearing in a hurry to sell may allow the buyer to dictate the terms of the transaction.
Focus on the value being offered
In case your ‘ask’ price is on the higher side, you can try diverting the attention from the price to the value that the property offers. Focus on the amenities on offer and how it fares against other properties in the market. Experts suggest that during buyer visits, the seller should help the buyer envision his life in the property. If the buyer connects emotionally with the property, it would be easier to discuss the price.
Do not reject all offers
Sellers are advised to not reject buyers right away in case their offers are not to your liking. If you are not sure about the early offers, tell the buyers you need some time to consider their offer instead. Being arrogant about your property may cause you to lose genuine buyers, which could be disastrous in a buyers’ market with supply exceeding demand. Meanwhile, having several interested buyers can help create a bidding war which could enable you to get the highest price possible.
Avoid drastic price cuts
Inexperienced sellers may be tempted to agree to a low price just to sell off the property at the earliest. A lack of adequate responses for a long time may also hit the confidence of sellers about the value of their property and they might end up drastically lowering their ‘ask’ price. However, experts advise against doing so as it could make serious buyers wary about the property.
Respect goes a long way in winning the confidence of the interested buyers and, hence, sellers are advised to not appear brash or rude. Negotiations can get stressful for both the parties and if you stay calm, the buyer is likely to behave well too. It is not uncommon for deals to get cancelled because the buyers were offended by the sellers’ discourteousness.
Arming yourself with the above mentioned tips will help you smoothly sail tricky negotiations. In case you do not feel confident about handling negotiations on your own, do not hesitate to hire an experienced broker who can take over the process on your behalf.