How to Negotiate the Best Price When Selling Your Home

When selling your home, the final price you settle on with a buyer, along with the real estate commissions you pay, will ultimately determine your net proceeds. Strong negotiating strategies can maximize your return, but it's crucial to know your home's value and how the local market influences that value.

1. Counter at Your List Price

Buyers often expect negotiations, starting with a lower initial offer. As a seller, rather than lowering your price, consider countering at your listed price. This approach signals confidence in your home's value and can compel serious buyers to make higher offers. While some buyers may walk away, this strategy helps avoid lowball offers and attracts those willing to pay a fair price.

2. Reject the Offer

Rejecting a buyer’s offer without countering can be a bold move that asserts your confidence in your home’s worth. Encourage buyers to submit a new offer, which may be higher if they’re truly interested. This tactic keeps you free to entertain other offers and creates a sense of urgency for buyers to act competitively.

3. Create a Bidding War

Scheduling an open house shortly after listing your home can stimulate competition among buyers. By refusing offers until after the open house, you increase the likelihood of receiving multiple offers. You can then request the highest and best offers from top bidders, enhancing your chances of securing a higher sale price.

4. Set an Expiration Date on Counteroffers

Adding an expiration date to your counteroffers pressures buyers to decide quickly, reducing the time your home is off the market. A shorter deadline than the standard can prompt faster decisions and keep your listing fresh. While your home is under negotiation, it’s effectively off the market, so swift resolutions are advantageous.

5. Agree to Pay Closing Costs

Buyers may request that sellers cover closing costs, which can amount to about 3% of the purchase price. Agreeing to pay these costs but increasing the purchase price can attract buyers who need assistance with closing expenses yet are capable of securing a larger mortgage.

Conclusion

Successfully negotiating the best price for your home involves strategic decisions tailored to your local market conditions. Confidence in your property’s value, the ability to create competition, and smart counteroffer tactics can significantly enhance your sale price. Ensure your home is in excellent condition and shows well to excite buyers and facilitate smoother negotiations. Partnering with a knowledgeable realtor can further optimize your selling strategy and help you achieve the best possible outcome.

FAQs

Can You Accept a Higher Offer After You've Already Accepted an Offer? 

Once a home is under contract, the buyer may back out, but the seller cannot. Accepting a higher offer after committing to another buyer is generally illegal and unethical.

How Does a Bidding War for a House Work? 

A bidding war occurs when multiple buyers compete by offering higher bids for the same property. It’s common in markets with low inventory and high demand, often resulting in a sale price above the listing price.

How Long Do Homes Stay On the Market? 

The average time homes stay on the market varies by location and market conditions. As of December 2023, the median time was 61 days. Your real estate agent can provide local data for a more accurate estimate.

What If My Home Doesn't Receive Any Offers? 

If your home doesn't receive offers, consider reevaluating your pricing strategy, enhancing your home’s presentation, or increasing marketing efforts. Consulting with your realtor can provide insights and potential adjustments.

Should I Disclose If I'm Negotiating with Multiple Buyers? 

While not legally required, disclosing multiple negotiations can create a competitive environment but may also deter some buyers. Balancing transparency with strategy is key.