Even in a seller’s market homeowners can sabotage the sale of their home. Here are some seller negotiation tactics that often backfire:
Starting a bidding war: Often times sellers hope for a bidding war thinking the price buyers are willing to pay for their home will drastically increase with multiple offers. While bidding wars can be tempting to a seller don’t let them interfere with your decision making process ! Often, sellers go straight to the highest dollar offer. This is not always the best choice. Seller’s need to thoroughly review each offer with their agent to ensure they are receiving the best offer to satisfy their needs. A few key points to review and consider are the amount of earnest money, cash vs. financing, down payment amount if financed, close of escrow date, etc. Although reviewing each contract is exceptionally important, it is imperative that sellers do this in a timely manner. Leaving buyers in the dark for a prolonged period of time can result in the revocation of their offer.
Arguing over repairs: Buyers may choose to walk away from the transaction if sellers refuse to make repairs that turn up during a home inspection. The seller needs to carefully consider how good the offer is before refusing to make repairs. When the buyer’s offer is high and the seller tries to negotiate away from legitimate repairs, the buyer may feel the seller is taking advantage of them.
Staying adamant about the closing date: Sellers may feel that since it is a “seller’s market” they will have the ability to arrange the closing date so it perfectly aligns with their move into their new home. However, buyers have scheduling issues of their own, too. Sellers need to understand that they may have to move twice, since buyer and seller schedules seldom work out perfectly.
Getting greedy over fixtures: Sellers and their real estate agents need to carefully review items that they would like to take with them, prior to listing their home. In some instances, buyers have backed out of the purchase due to a fixture feud. Be sure to replace anything valuable that won’t be staying with the house before photographing and listing it, or be willing to negotiate a comparable replacement.
Selling one’s home is an inconvenience and burden under the best of circumstances. Sellers need to be prepared to be flexible and willing to work with a good faith buyer, even in a Seller’s market. To have the most beneficial and pleasant selling experience a seller must put themselves in their buyer’s shoes and treat them like they would want to be treated, if the roles were reversed!