You Must Use Leverage To Negotiate A Better Price When Selling Your Home
If you plan on selling your home this year, I recommend you take some time to learn how to create the leverage that you need in order to negotiate a better price.
With sellers outnumbering buyers in today's real estate market, I often find sellers negotiating from a position of weakness.
This ultimately results in selling a home for a lower price, or altogether failing to sell a home.
Why Leverage Is Needed To Negotiate A Better Price
Leverage is the ability to influence the other side to move closer to one's negotiating position.
Each party’s leverage during a negotiation is the primary factor determining how the transaction will turn out.
Leverage is having what the other side wants. Leverage is power. Whoever has leverage … wins.
To simplify how to negotiate a better price when selling your home, consider which of these two positions would give you greater leverage:
- 4 motivated buyers are bidding on your home
- 1 buyer merely likes the layout of your home
In the first situation, you have significant leverage. You can "lever" fear of loss with each buyer to negotiate top dollar for your home. Now contrast that with the second scenario. If you push for a higher price, it is likely an unmotivated buyer will move away. The second buyer does not feel as if there is anything to lose (if he goes away, he can always come back as your home will still be for sale).
Remember, there are more sellers than buyers right now, so creating leverage to negotiate a better price takes careful planning, utilizing an in-depth study of current market conditions for your home.
How To Use Leverage To Negotiate A Better Price When Selling Your Home
The two keys are exposure and price.
If you tell the whole world that your home is for sale, but you price it incorrectly, you will not create the leverage that you seek.
If you price your home incredibly low, but do not tell enough people, you will not create the leverage that will gain you top dollar.
We call this critical leverage "targeted marketing," and for this to work, you have to understand internet marketing for real estate.
Gone are the days when a sign, a lockbox, and a newspaper ad worked to get your home sold. Top dollar comes from attracting MULTIPLE BUYERS that you can lever in order to negotiate a better price for your home.