Price Negotiation & Price Reduction Strategy
When a seller has been presented with a reasonable offer, but believes he can do better, ask questions about the following considerations which should be addressed point by point.
If they don’t sell:
- What are your caring charges to hold onto it for another year?
- POA or HOA Fee’s
- What is the lost opportunity cost? For example, what would you do with the money if you had it to
- If you are buying another home, is it likely you could offset the lower price you received by getting a
better price from the Seller?
- Is it more likely to be busier now after season, or will there likely be fewer buyers now (demand)
- Is it likely that more people will put their property on the market, or will the inventory stay the same? (supply). How will more inventories affect your price and sales time?
- What dollar amount would you put on the aggravation of having to continue to try to sell your home?
What is it worth for you to get the process over with?
- Does keeping the property affect the quality of life you have worked so long and hard to achieve?
What is that worth?
- Will Buyer motivations change in the future?
- If you continue to negotiate aggressively, will Buyer’s remorse set in, and cost you the sale?
- Is not selling your home now causing you to put your life on hold? (Paralysis)
- If there is a hurricane, how will that affect your plans and value? Even if you don’t suffer any damage; will you lose 3-6 months of Market Collapse?
- Will economic changes like gas prices affect consumer confidence? Could they affect Buyer trends because of additional cost to drive from place to place?
- What is the cost of the personal time you will continue to invest in getting a sale?
- If you were in a Buyer’s shoes, would you buy your home or another?
- What will happen to the buyer’s pool if the interest rates continue to go up?
- What will happen if the Real Estate news as published in the paper this summer is even worse than it has been? How will that affect Buyer confidence and sales price?
- What other markets conditions could hurt the sales price in the future?
Use the Ben Franklin Close by helping them list all of the negatives possibilities and then ask them to list the advantages of waiting for a higher price, BUT DON’T HELP THEM WITH THIS SIDE OF THE LIST.
It will be one item, Price.