Negotiating Price & Terms
First and foremost this is a business transaction, therefore, do your best to keep emotions in check. The current real estate market conditions and demand for your home will often dictate the negotiations. If there is a limited supply for homes and/or a large demand for your home you won't have to worry about negotiating, however, if the opposite is true you need to be prepared.
As a seller it's important to know Colorado is a very buyer "friendly" state and buyers have multiple opportunities to negotiate and/or terminate the contract and retain their earnest money. Typically there will be two instances when you will negotiate with the buyer, when they first make the offer and then again at Inspection Objection. Negotiating during the inspection phase can be difficult as the buyer is aware that you have limited options, unless you are willing to place you home back on the market and "start over." Every transaction and buyer are different, but here are some good tips to consider when negotiating.
- Don't allow your circumstance to negotiate for you. Before you start packing or making any commitments make sure your cover all your basis and/or have the ability to "start over" if needed.
- Accepting and encouraging back up offers will help you maintain control. If the buyer knows you have a great plan B, they will be less likely to make unnecessary requests.
- Require Inspection Objection/Resolution deadlines within the first seven days of the contract.
- Always look first for solutions that are "win-win" you will be better served. This may require some creativity, but if you don't have plans for your flat screen TV or your leather couch won't fit in your new home, you may want consider using personal items to assist in your negotiation. Offering a home warranty is also a great solution for buyers worried about minor issues.