Blog

Unintended Consequences: Negotiation Tactics To Avoid When Selling a Home

Even during a seller’s market, it’s important not to become overly confident when selling a home. In fact, some negotiation tactics can be detrimental if they seem too aggressive or greedy. Sellers might have the upper hand in the current market, but there are a few so-called strategies that could backfire and cause an entire deal to fall apart. Take the following no-no’s into consideration during contract negotiations.

Provoking a bidding war.

Did you receive multiple offers for your home? Great! Being able to basically choose your buyer is a fortunate situation to be in. However, problems can arise when multiple offers aren’t handled with care. Have each buyer’s agent advise their client to bring their highest and best offer, and choose the one that is most beneficial to you. Don’t keep going back and forth and extending negotiations. You may very well scare off potential buyers.

Not compromising about repairs.

We’ve all been there. A home inspection comes back, and the buyer asks for every little nitpicky thing to be fixed before they’ll agree to go forward with the purchase. While it’s perfectly okay to be choosy over small, inconsequential fixes, sellers should avoid turning down requests for legitimate repairs, especially if the buyer’s offer is a solid one. Trying to bargain your way out of making legit repairs could cause your buyer to walk.  

Insisting on a specific closing date.

Every now and then the stars and planets align, and the perfect closing date works for both the buyer and the seller. Most of the time, though, that’s just wishful thinking. The seller might have a moving date that’s later than the buyer’s deadline to move or vice versa. Be as flexible as possible when it comes to closing and consider the big picture. Having to rent a place or stay with family for a few weeks until you close on your own new home is a small sacrifice in the grand scheme of things.

Fighting over fixtures.

It happens. Miscommunication occurs over a light fixture or appliance, and a deal falls apart when neither side will budge. The thing is, it’s reasonable for a buyer to assume that any fixture that’s attached to the ceiling, wall, or floor will stay when the seller moves out. If there’s a light fixture, ceiling fan, or appliance that you don’t intend to leave behind, either remove it from the house before showings, have your agent make a note of it in the listing, or attach a tag that clearly states that the item does not convey.


Refusing to pay closing costs.

We beg you: please do not lose a deal over closing costs. When a buyer asks for closing costs, chances are they’ve added them into their offer, which pretty much nets the same price you would have gotten if you didn’t pay closing costs. A $200,000 offer with no contingencies is essentially the same as a $205,000 offer that asks you to pay $5,000 in closing costs.

Happy 4th of July

We want to wish all of our friends, family, and communities a fun and safe weekend!


In honor of the holiday, our offices will be closed on Monday, July 4th, and will resume normal business hours on Tuesday, July 5th.

 

Here are a few event listings:

http://www.patriotspoint.org/news-and-events/event/fourth-of-july-fireworks-blast-2016/

http://www.northcharleston.org/Residents/Special-Events/4th-of-July-Festival.aspx

http://www.sciway.net/calendar/july.html

http://www.things-to-do-in-charleston.com/charleston-july-events.html

 

4th-of-July.jpg

Grand Opening in Charleston

Grand Opening Side B

We are proud to announce the

Grand Opening

of our second location!

Follow us on Facebook or Twitter for more details on events, articles, and more.

 

Don't Blow Your Home Loan Approval During the Holidays

Buyers can get great deals on homes during the holiday season, but house shopping around Christmas time isn’t the easiest of tasks. December tends to be a pretty spendy time of year, and if you’re trying to buy a home, a spending spree should be the furthest thing from your mind. Even a small change in your financial situation can cause a delay in closing—or it might cause the entire deal to fall through. If you find yourself with a December closing date, here are some important things to remember to help keep things on track.

 

Don’t open any new lines of credit. It can be tempting when a cashier offers you an extra 20% off your purchase for just applying for a store card, but please don’t do it. Even if you don’t charge anything to a new credit card, simply opening one can raise a red flag for your lender. To be on the safe side, wait until after closing to apply for any new credit.

 

Don’t make any large purchases. Moving into a new house sometimes requires new furniture, and buyers are sometimes impatient. With Christmas around the corner, this one can be even more difficult. Maybe you had plans to surprise your loved one with a new car. Maybe your son was really looking forward to a new, top-of-the-line computer. If you’re waiting to close on your new home, though, it’s best to wait until after to buy the big gifts.

 

Do be careful about large deposits. Yes, even that nice Christmas bonus can throw a wrench in the works! Anything that changes your debt-to-income ratio (even if it’s in your favor) can be a potential problem. If you do receive a large check, check with your mortgage broker to see if depositing it into your bank account will cause any issues.

 

Do keep paying bills. This isn’t the time to skip a payment just to have a little extra cash for Christmas. Paying all bills on time is important to keep your credit in good standing. The last thing you want to do is have a dip in your credit score just before closing!

 

What other advice do you have for homebuyers who have a closing date during the holiday season? Drop us a line in the comments section!

search-sc-homes

blogging

BadgeTestiimonials

A friend of ours who recently bought a house enthusiastically referred us to Johnson & Wilson. Our friend's recommendation was top notch - Johnson & Wilson. is AWESOME! - Brian
 
Read Unbiased Consumer Reviews Online at AngiesList.com
Real Estate Agents in Charleston

Leverage Seal 1.png191