When it comes to the house selling negotiation process, this is #1 in my book.
NEVER negotiate an offer to purchase verbally. You WILL lose.
Sorry for shouting but.... This site is called Sell My House FSBO. It is not called, let's make a real estate agent happy!
You want to negotiate the highest price with the best terms for you.
The buyer wants to negotiate the lowest price with the best terms for them.
We will cover just one of the many negotiation techniques on this page.
If you are looking for some different for sale by owner house selling negotiation ideas, just select one of the photo links of your choice below.
Tips for Nerves of Steel
Many times a purchaser will use techniques to start testing the water. For example, you have a certified appraisal for $275,000.00.
The purchaser has indicated to you that they are really interested. Then they do the old low ball test offer.
Mr. and Mrs. Seller, my wife and I might be interested in putting a bid on your property, but we don't want to pay what you're asking.
Would you consider selling for $250,000.00?
DON'T PANIC! If you get a low ball verbal proposition like this, your response should ALWAYS be the same.
The for sale by owner house selling negotiation technique I'm about to tell you is worth all the time it may take you to study this entire site.
Your Response to a Low Ball Verbal Bid
Mr. and Mrs. Buyer, we really appreciate your offer. If you write everything up on paper, we'll be more than happy to take a serious look at it. Now, don't get caught without some for sale by owner contracts on hand! Don't have any? No problem. Just head on over to the best lawyer written up to date purchase and sales agreements available.
Of course, you can put the words in your own style, but the message should always be the same.
If you took only one thing from this web-site, this for sale by owner house selling negotiation tip is what I would probably pick as the most important lesson.
What normally will happen in most cases when sellers are not familiar with how to use various for sale by owner negotiation techniques, is they will start a verbal back and forth.
You will lose either the whole thing or you will take less than what you would have received if you used the above answer.
The absolute worst thing to do is say no, we're not interested unless you want to pay full price.
Another Short Bedtime Story
This occurred just a few days before I wrote this page. We have a niece back in Nova Scotia who has her house listed with a real estate agent.
I know. BOO! BOO! Anyway, her real estate agent called her the other day with a purchase bid.
I don't know all the details, but it was a low and the real estate agent gave her the price on the phone! Either this agent is new, incompetent or both.
My niece told her to not even bother bringing the paper over. The real estate agent obliged. What a disservice!
If and when the property sells, while this real estate agent has the house listed, they will actually get paid for their service. What an injustice!
Perhaps I should send this real estate agent some of my negotiation advice that you are learning here. :-)
OK, enough ranting. Back to business.
Why Do You Use the Written Offer?
Here is the why. Once you understand why you do something, it starts to make sense. :)
I had more success and fun with the negotiation process while I was in real estate than probably any other thing I did.
When you tell the buyer you will take a serious look at their written offer, they start to mentally take ownership.
When the buyer actually takes the time and effort to put everything on paper, that mental ownership becomes more deeply ingrained.
The mind is a powerful thing, but you can trick it. Not maliciously. Just good business sense.
Once you didn't turn down the buyer's low ball verbal proposition, the buyers start visualizing living in your house.
They probably don't believe they will be able to purchase your house at such a low price. The funny thing is, though, they are now in the “we're moving to their house” mindset.
Once someone takes possession of something in their mind, it is much more likely that reality will follow.
What will Happen, if the Negotiation is Verbal?
Let's take this same situation where the buyer throws out the old low ball and, you decide to do your for sale by owner house selling negotiation verbally.
One of three things will probably happen.
You go back and forth giving and taking until you reach a price between $250,000.00 and $275,000.00. (you lose)
You get into an actual argument until you don't even like each other, and the buyer walks away. (you both lose)
You give the buyer a verbal counter-offer which they say no to and it's all over (you both lose)
This is why you use the "put it on paper" negotiation technique.
Mr. and Mrs. Buyer, we really appreciate your offer. If you write everything up on paper, we'll be more than happy to take a serious look at it.
I'd like to add a note here concerning buyers and sellers sometimes not liking each other. This actually happens probably more times than people realize.
If you are doing your negotiation verbally and you are quite far apart on the terms of the agreement, you are in real danger of things becoming personal.
The negotiation gets more heated until one or the other either says or thinks.
“I wouldn't buy your house if it was the last habitat on earth Mr. And Mrs. Seller!”.
or the seller?
“I'd burn this house down before I'd sell this house to you Mr. And Mrs. Buyer!”
When you read this it sounds rather silly doesn't it? It is silly..... BUT it happens.
Mr. and Mrs. Buyer, we appreciate your offer. If you write everything up on paper, we'll be more than happy to take a serious look at it.
That's All You Have to Remember
Do you see how easy that is? When it comes to this for sale by owner house selling negotiation tip, you only have to remember one response if someone gives you a verbal offer.
You don't need to know a bunch of tricky complicated closes and come-backs. Just one, and only one response, and let them go home and write it up.
Even better, you can let them write up the offer right there in the kitchen.
For more for sale by owner house selling negotiation ideas
Choose any of these photo links