Are you selling your home in the North Metro Denver Area? You have done all the legwork and prepped your home to sell. You have listened to your Realtor’s advice and made some minor changes they have suggested and added some welcoming touches for showings. Now the moment has come that you have an amazing offer on your North Metro Denver area home. You are so excited and thankful for this moment that you think you just need to sign the papers and everything is complete. Then you see the buyers have added in some negotiations and things they would like to be completed before purchase… Now your Realtor is telling you that you need to counter and negotiate an offer in return. What does this mean and where do you start? This article will walk you through the process of negotiating an offer and what this means for you as the seller.
What To Negotiate Back For A Lower Offer Than Expected
Let’s walk through this scenario first when you have received an offer on your home. You are in shock at what the buyers have just offered for your home. When you are selling your home you want to be in the driver’s seat during negotiations. To leverage the best deal for you! This is one of the most common scenarios I help my clients work through. So don’t be alarmed if it happens to you. You have a couple of options here. You can counter with your original asking price, or counter somewhere between your original asking price and what the buyer has offered.
This can also be where having a savvy Realtor to help you is great. They can think of a way to offer them back your original asking price. Adding something “sweet” in the deal. This back and forth game can go a couple of rounds before the buyer comes up to the seller’s price or both parties are happy with the final price. Some advice I give to my clients to help avoid the back-and-forth with countering. Offer only a slightly lower price but adding in one or more of these concessions.
- Move out date to favor the buyer
- Include furniture with the purchase
- Off-set cost of a future repair
- Pay a percentage of the buyer’s closing costs
- Give some credits at closing for HOA fees
How To Negotiate Back If Buyer Wants You To Cover Closing Costs
Another common situation my clients are in with an offer is they are happy with the price of the offer, but the seller has asked them to cover closing costs or part of them. As the seller you have some options: you can agree to cover closing costs, raise the sale price to cover the costs or reject the request of covering closing costs. Typically closing costs are around 2 to 5% of the purchase price. So if you agree to cover these costs keep in mind you will be walking away with that percentage loss of income from the sale.
It is honestly a personal decision and if it means making the sale happen on a home then some sellers agree to pay the fee. For some buyers, the added closing cost price is what could tip them over their loan amount and not be able to make the purchase happen. Also, you can meet somewhere in the middle of the closing cost fees and choose to split the costs.
Multiple Offers Come In At Once
This is the best-case scenario for my clients with the market being as hot as it is for sellers right now with low-interest rates. This is the trend I have been seeing. This really allows you to be in the driver’s seat and you can pick which offer is best for you! You may be the type of seller who incites a bidding war and encourages buyers to place offers better than those on the table.
Starting this war seems exciting and if you can influence them to raise their offer so you walk away with the highest sale amount in your pocket then it is a win for you! I will always caution my clients this tactic could backfire and lead to discouraged buyers. My advice is always to look through all the offers and take the offer with the highest bidder, and what one gives you and your family the best scenario for all of you!
Final Thoughts How Can I Help?
If you have any additional questions when it comes to how to negotiate an offer please reach out to me! My clients have the most up to date information to help them through this time of buying or selling their North Metro Denver Area home. I hope this article on how to negotiate an offer will come in handy when it comes to selling your home. I want to provide my clients with interesting and up-to-date information so they can make informed decisions. If you think that my expertise and positive attitude might be of service to you don’t hesitate to reach out and contact me!
Would you like more information on the North Metro Denver area or the real estate market specifically? If so click here to download my current market report on the area or visit this link – http://christinakernexpert.com/market-report-newsletter/
Residential Home Specialist & Global Luxury Specialist
Coldwell Banker Residential Brokerage North Metro Office