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Negotiating
With Potential Buyers
Tension
between buyer and seller is inevitable. A buyer wants the
most house for his money; a seller wants the most money for
his house.
If you've
employed an agent to represent only you, rely on this professional
to direct events toward a satisfactory conclusion. If you
are selling on your own, consider hiring an attorney or agent
(acting as a real estate consultant) to help with negotiations;
alternatively, brush up on basic aspects of the art when you
hang out the "for sale" sign.
Review
the planning center developed for buyers. That will give you
a sense of how an informed, well-prepared buyer might go about
selecting a home, making an offer and negotiating the best
deal.
Do's
and don'ts
- All
negotiating should be done in writing, not orally.
- Be careful
not to react to trial balloons the buyer sends up hoping
to discover your bottom-line price and other terms.
- Don't
feel you must commit to the first offer presented, particularly
when it's below your expectations.
- Do remain
confident. You've priced your home properly and it's competitive
with other houses on the market, so hang tight.
- On the
other hand, don't disregard a good offer just because it's
the first or second one you receive. Early contracts on
a well-priced house are usually submitted by the most serious,
well-qualified buyers -- people who know their own needs
and resources and who have studied the market carefully.
A reasonable offer from such a prospect is worth serious
consideration and probably a counteroffer from you.
- Don't
be overly impressed by a large earnest-money deposit --
it doesn't automatically cement a contract. Most offers
contain language that makes it likely such deposits will
ultimately be returned to their offerers if a deal doesn't
go through.
- Do look
for other signs -- contractual and psychological -- as evidence
of a buyer's serious intentions.
- Do examine
each contingency. Beware of the contract that binds only
you. Getting a seller to accept an offer that nails down
the price and terms but leaves the buyer free to escape
through any number of clauses is a perennially favorite
buyer strategy.
Once a
contract offer passes your preliminary review and becomes
a candidate for acceptance, it should be reviewed by your
Realtor and/or an attorney or be made contingent on that review.
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