Nov 4, 2012
Q: What are some tips for negotiating a price down?
A: Whether presenting an offer for your buyer or helping your seller determine a market price for their property, evidence is key.
Presenting a “low-ball” offer to a seller may adversely affect any future negotiations. Explain to your buyer that presenting a lower yet still reasonable offer will likely bring a more positive response from the seller. They may then be more willing to negotiate.
Providing recent sales of similar area homes to back your offer and having solid evidence that the buyer is in a position to move forward provides a strong foundation. Identifying the purchase property’s issues that may need updating or repair without nickel-and-diming can help explain the offer without offending the seller.
To get your sellers to agree to a price reduction, show them examples of local properties priced too high with a focus on more days on the market and expired properties. Also, calculate the local absorption rate, which is the rate at which houses sell in an area. Then explain that pricing is based on supply and demand.
— Rose Warmingham, Coldwell Banker Residential Brokerage, 203-913-1651, Rose.Warmingham@coldwellbankermoves.com