Negotiation Strategies For FSBO Sellers
One of the main challenges when selling a home is negotiating with buyers. A seller must know how to play the game to get top dollar.
Many homeowners decide to sell their properties independently to avoid paying realtor commissions. It might be a grave error.
Counter At Your List Price
One of the most common mistakes FSBO sellers make is listing their homes for too high. It can lead to a longer selling process and missing out on potential buyers who may have missed your listing when it first came on the market. If you want to sell your home quickly and for a good price, consider working with a top real estate agent who can provide expert advice about pricing.
Many FSBO sellers will immediately throw out a number, whether based on what their neighbor’s home sold for or how much they put into the house themselves. Once they name a number, it’s hard to get them to budge.
If you’re a buyer, it’s important to understand that FSBO sellers often don’t have the same negotiation skills as their agents and can be willing to take less for their homes. It can be a turnoff for buyers hoping to negotiate a great deal.
FSBO sellers are also likely to avoid paying the buyer’s agent commission, which typically ranges from 1.91% to 3.06% of the final sale price. Depending on the situation, this could make them more willing to accept a low offer to close the deal. It can make for a very stressful situation for both parties, so it’s best to be prepared to move quickly when ready to make an offer.
Play Hardball
Home selling is one of the most significant financial transactions homeowners will ever undertake. The price they agree to with a buyer, plus real estate commissions, will determine how much money they walk away with. You can use several negotiating tactics to ensure you get top dollar.
Buyers may point out any perceived damage or flaws to your property during negotiation. Rather than immediately rejecting their claims, it is better to let them know they are welcome to have these issues inspected, at their own expense, before accepting an offer. It shows that you are unwilling to be bullied by a buyer’s unreasonable requests and encourages them to submit a higher offer.
While you can use a few different strategies to negotiate with buyers, it is important to understand that a smart negotiator always has an objective in mind. The most important thing to remember is that the objective should be a win-win situation for both parties. If you enter the negotiation process with this mindset, you can navigate even the most difficult buyer situations. Sellers who don’t want to engage in lengthy and complicated negotiations can also consider working with a transaction coordinator, who will advise them and handle the paperwork and closing details.
Put An Expiration Date On Your Counteroffers
Many FSBO sellers are selling their homes without the assistance of a real estate agent, and buyers can find a home for sale by owner near Woodstock, GA, through online listings or by driving around neighborhoods to look for yard signs. While this may seem convenient, it can also present challenges when negotiating with FSBOs. For example, suppose the seller hasn’t worked with a real estate agent before. In that case, they may not be familiar with the typical home-buying process or have an understanding of market conditions. Additionally, some FSBO homeowners refuse to pay the buyer’s agent’s commission or have mistrust towards real estate professionals.
During the negotiation process, the homeowner must remember that the buyer is also trying to solve a problem, and they may have some absolute needs that cannot be compromised. FSBO sellers must understand this and try to work around these issues during negotiations rather than using hardball tactics.
In addition to price, another common issue during FSBO negotiations is the inclusion of personal property. It includes appliances, furniture, and other items not included in the sales contract. To avoid these issues, it’s recommended that the FSBO seller get a professional home inspection, which can help them prepare for what their potential buyers will be asking for in the contract.
Ask For Rent-Back
Real estate laws and the selling process vary widely by state, so a home buyer must know what local requirements are in effect before attempting a negotiation with an FSBO seller. For example, in Georgia, all FSBO sellers must disclose the presence of lead-based paint and agree to pay to inspect their property before closing.
If an FSBO seller isn’t willing to budge on the purchase price, one option for buyers is to ask for a rent-back. It allows the buyer to take the time they need to complete the mortgage application and may give the seller more negotiating room regarding closing.
Another way to get a better deal on an FSBO home is to offer to cover the buyer’s agent commission. Since almost 87% of buyers work with agents, if a seller refuses to pay a buyer’s agent commission, it will limit their pool of potential buyers.
Many FSBO sellers choose to sell their homes without the help of a professional real estate agent because they believe it will save them money on commission rates. However, research shows that homes listed FSBO tend to stay on the market longer and earn less than those sold with agent assistance. Moreover, they can be difficult to work with and often require extra paperwork from the seller and the buyer.