How to Negotiate the Price of a Home You Are Selling

When you receive an offer, you have three options: accept the offer, reject the offer, or counter the offer. Most successful contracts - those that are good for the buyer and the seller - are the result of careful negotiation.

Difficulty: Moderate

Instructions

Things You'll Need:

• Calculators
• Counteroffer
• Real Estate Attorneys
• Calculators

1. Request written verification (a financial prequalification) of the buyer's ability to purchase your home.

2. Review the entire offer. Make sure you are aware of any contingencies or requirements that might make the offer unacceptable. Discuss the offer with a real estate broker or lawyer.

3. Consider the contract as a whole and work all the costs down to a bottom line. A lower sales price can sometimes net you more money.

4. Write your responses on a standard counteroffer form, which can be purchased at a bookstore or a realtor store. Write down only the items that you wish changed, such as the price, length of escrow, amount you are willing to pay for repairs, and so forth.

5. Present your counteroffer to the buyer. Be sure to include a date and time by which an answer must be received or the counteroffer will expire. (Everything you want to be part of the final contract must be in the counter offer.)

6. Examine each counteroffer (you may receive a counteroffer to your counteroffer!) as if it were a brand-new offer. Any terms not addressed on the counteroffer will remain the same from the original offer.

Tips & Warnings

• Keep all negotiations in writing.
• If you're working with an agent, be clear about your needs and wants in the counteroffer phase. This will allow your agent to be a better negotiator on your behalf.
• Never tip your hand to the buyer or a buyer's real estate agent by indicating what you will accept as a bottom price. Be careful not to react to any "trial balloons" a buyer might send up hoping to find out your bottom-line price and other terms.
• Beware of any contract that binds only you. Often buyers will include contingencies in the offer that will allow them to escape easily but make it difficult for you to back out.
• Remember that once an offer or counteroffer is accepted, the agreement becomes a legally binding contract.
• Avoid letting your feelings overrule good judgment.