Posts Tagged as Negotiation Tips

How to Handle Asking Sellers to Lower the Price

How to Handle Requests for a Lower Selling Commission

Discount brokers are popping up nationwide, sporting “sell-to-the-commission” tactics. In today’s real estate selling tips, we’ll take a look into how this concept backfires for all parties, and how to explain to buyers why a fair commission will net a better all-around sales experience.

The Unalienable Truth of a Fair Commission:
Lower Sales Cost + Lower Commission = Shortage of Showings.
This also equates to confusion and frustration for buyers and sellers, who are left on the sidelines. If more buyers/sellers understood the following facets of agent commissions, they would finally understand why ‘you get what you pay for’ when it comes to sales commissions.

The Split:
In the typical 50/50 commission scenario, a 5% split would pay 2.5% each to the buyer’s and seller’s agents. With a discount broker, the buyer’s agent typically ends up shorted, getting 2% to the seller’s 2.5%. With an average home price of $250,000, sellers see that 0.5% saved as an extra $1,250 in-pocket. This miniscule portion, however, points agents representing buyers to other homes not nickel-and-diming agents.

The result? Less showings, with less potential sales. Less competition, with a lower possibility of the coveted ‘bidding war’. A longer time on the market, with buyers wondering what’s wrong with the home. A negative stigma, resulting in a lower purchase price, and lagging sale. It’s the same extended market time that overpricing leads to, which likewise kills the potential to get top dollar.

The Ridiculous Question
Ask your sellers to ask themselves, “Which house do you think a buyer’s agent will want to sell: A competing home willing to pay the typical commission, or a home listed by a ‘discount broker,’ which involves the same work for them, but pays less?”

Delve into the nitty-gritty of this argument in Part-2, exploring what you assume clients know, but often don’t, about commissions, and the real estate selling tips to break it down from Properties Online today.

Important Trends to Keep You In The Know

The Realistic Asking Price: Talking Sellers Down from a High Horse

All sellers want to eke every possible dollar out of the sales price of their home, prompting many to overprice in their initial sales attempt. Without the right real estate selling tips, this could turn out to be a painful lesson. Do you have the skills necessary to talk sellers down from their high horse and ensure a safe dismount into reality?

Help sellers understand why higher is not better
They don’t have the intricate understanding of buyer psychology that you do, and may overlook essential issues with their high-handed pricing strategy – such as the fact that buyers always want the best deal, and often walk away from higher-priced homes eager to snag those of better value nearby – even when a higher-priced home is far preferred.

Why shouldn’t sellers “test the market”?

  • Wasting precious time.
    The first 30 days are when new listings see the most action –overpriced homes skip this honeymoon period. Your best chance for multiple offers and a fast turnaround is to list right.
  • The “drive-by”.
    Today’s buyers are smart, and won’t even kick the tires of overpriced homes – even if the home comes up within their price-search parameters.
  • Helping the neighbors.
    Buyers perusing overpriced homes often flock to other homes in the neighborhood with lower-priced listings.
  • Buyer stress.
    Higher prices don’t leave more room for negotiation, they stress buyers out, who typically do not enjoy this process and are eager to take advantage of competitively priced homes versus the stress of constant haggling over their largest investment. And if your home is overlooked because of price? No negotiations.
  • Two words:
    Appraisal value.
  • Forced price reductions.
    After the home is stale and no one bothers to look at it any more, forced price reductions earn less than a realistic price would have anyways.

Do you have the real estate selling tips you need to help homes shine? Properties Online can help. Contact us today.

Don't Waste Time, Learn These Negotiation Tips Now!

Top Tips on Negotiating a Lower Selling Price for Your Buyers – Part Two

In our last installment, we offered a few pointers on easing buyers back into a hot market. In this installment, we’ll discuss a few more ways to give buyer’s a bit more breathing room – emotionally and financially – with these real estate buyers agent tips for dealing with today’s limited inventory.

What else can you do to help ease negotiations?
Helping your clients understand the process is key.

  • Be a listing P.I.
    Buyers must have as much information on-hand as possible for the best chance at a competitive offer. This includes property and neighborhood information, alongside the 4-1-1 on why the seller is moving. Be sure to ask a lot of questions and do the necessary digging through public records and online to put the best strategy in place. Consider:

    • Is the property a foreclosure/short sale?
    • Has the seller found another home and prefers a fast closing?
    • Is the seller still searching and in need of a rent-back agreement or longer closing?
    • Is there a divorce (has it been previously listed)?
  • Look past the small stuff.
    Outdated décor can be easily changed, and won’t earn you a better price.
  • Expect compromise.
    One of the toughest real estate buyers agent tips to sell clients is that there is no perfect house, or perfect price. When buyers understand this in advance, it makes the process less of a shock. Expect compromises on amenities, size, price, and location.
  • Don’t let terms fall through the cracks.
    They can be as important as price. Make a bigger down payment, accept estate contents, remove inspection contingencies – in short, make the offer attractive.
  • Be personal.
    Add a personal letter so the offer stands out. Sellers often yearn for buyers who will enjoy the home as much as they did.

Do you have the real estate buyers agent tips you need to clinch the sale? Properties Online will set you up for success. Contact us today.

Top Tips on Negotiating a Lower Selling Price for Your Buyers – Part One

The market has heated back up, making the home buying process frustrating for buyers yearning for a property in the right neighborhood with the right fit – and the right price. Is there any way to manage this grand trifecta in today’s tight market? With the right real estate buyers agent tips, you may be able to ease buyers in…

Letting go of the past
First and foremost, today’s buyers need to understand foreclosure-driven deals of the century are gone. Today, a good buy is finding a great property to meet your needs – before someone else snatches it. With limited inventory, it’s definitely a seller’s market.

Getting the best deal
What real estate buyers agent tips can be passed on to clients to foster a feeling of accomplishment when it comes to price negotiation?

  • Make your offer shine.
    Be certain your buyers understand the importance of a pre-approval letter with competitive offers.
  • Know your numbers.
    Make sure buyers do the math before they get hung up on small price differences. That $5,000 price increase at today’s low interest rates is really only around $20 a month.
  • Focus on value.
    Help buyers understand a home priced at or below value is a good deal that will unlikely go for less. Homes above market value that have sat stagnant, however? Here you can let your skills shine with a lower offer and competitive market analysis.
  • Don’t drag your feet.
    Properties are going quickly, and it could cost you the sale.
  • Ask – but don’t assume.
    You can ask for repairs and concessions, but understand you won’t get it all. After a certified inspection is best – but don’t go into the process with the assumption that it will allow you significant room for negotiation.

Looking for a few more real estate buyers agent tips to help you cinch that sale? Stay-tuned for part two of this installment, only at Properties Online.