Mastering the Art of For Sale By Owner Negotiation

Posted on July 26, 2007
Filed Under Real Estate |

There is much more involved in selling your home than presenting a beautiful and immaculate home for sale. Once you have a potential buyer, it is now time for what some people consider the most difficult part: the dreaded for for sale by owner negotiation process.

In reality, negotiating with a buyer is not really all that much different than the everyday negotiations you may go through with family members and co-workers. It only seems intimidating in this situation because of the high stress level associated with the sale of your own home.

It’s important to remember that in the process of FSBO negotiation, emotions can easily destroy a good deal. Unfortunately, many people will walk away from a deal if their offer is insulted in any way. For example, your potential buyer may have other plans for that beautiful garden you worked so hard to cultivate and you just can’t imagine a shed being erected on top of it. You must set aside your emotions you have about your home to allow the deal to go through.

In for sale by owner negotiation you’ve got to establish trust. Avoid any responses that may offend the buyer. Even though you may feel insulted when the buyer calls the wallpaper ugly or your favorite rosebush an eyesore, you’ve got to let things like that slide if you hope to sell your home. Being truthful in your FSBO negotiations is important too. If your potential buyer sees something wrong like a water stain on the attic ceiling, making false excuses will do nothing but damage your credibility and hinder your FSBO negotiation.

Fairly early on in your FSBO negotiation you want to make sure the buyer can qualify for a mortgage to cover the asking price of your home. Remember, too, your buyer is not the enemy and you don’t want to get defensive. Rather you are working with them to achieve a mutually beneficial result. If the buyer offers to pay far less than what you are asking, ask questions to determine how he got to that number.

When you make your counteroffer, be respectful and let the buyer know you have considered his position. Be willing to explain your counteroffer in a way that you would like to have the offer explained to you. You must remember above all else to be courteous and not to get defensive during any portion of the FSBO negotiation. Everyone is entitled to an opinion, but you are engaging in a transaction and it must be handled in a professional manner. Be willing to discuss any property defects and to allow an inspection of these defects. If after inspection, a price quote is given to fix the defects, be prepared to lower your asking price by a portion of the cost to repair.

Your FSBO negotiations don’t have to be an intimidating process if handled properly. They will only be another step in the process of selling your home. Things will flow allot smoother than you might expect if you will follow the above tips. In the end, it will produce a happy buyer and a happy seller.

Discover more for sale by owner strategies in the FSBO Files.

Tags: Real Estate

Mastering the Art of For Sale By Owner Negotiation

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