How to Negotiate the Price of a Home You are Selling

Video Transcript

"How to negotiate the price of a home you are selling is not a difficult thing to do. I'm Richard Blake and I'm going to explain how you can negotiate the price of the home that you are selling. When an offer comes in you've got three things that you can do. You can accept the contract, reject the contract, or counter offer on the contract. Have your local lawyer or your local real estate agent take a look at the paperwork and the offer that's been submitted. The first thing that you're going to want to do is recognize the true value of your home. Regardless of what your asking price might be. You're going to do this by taking comparables in the neighborhood. Most importantly you're going to want to know what's sold in the neighborhood. Preferably somethings that's sold within the last six months. Any longer back than that, a potential lender may not find that information very valuable. You're also going to want to make sure that the properties that you're using to compare your property with are within twenty percent of that value. Meaning if your home is one thousand square feet you're going to want to make sure that you don't take homes that are larger than twelve hundred square feet or homes that are smaller than eight hundred square feet. As well as make sure they have similar items such as you know if your property has a two car garage, they have a similar size garage, pools, etc. All of those items. Upgrades aren't necessarily going to be considered too much value in the long run on a purchase price of a home. And then once you've established the value or the market value in the neighborhood. Then compare that offer with the offer that you, I'm sorry, then compare the offer that you had come in with the market value of your neighborhood. If it's within the same ball park you know you've got a great offer and you're going to accept it. If it's much lower, then you're going to want to counter offer at whatever the current market value is in that neighborhood. Again contact your local Realtor or contact the local lawyer and have them look over the paperwork to make sure that you've established the current market value for your neighborhood. I'm Richard Blake that's how to renegotiate contracts. Have a great day."