Home Size2,785 sq ft
Days on Market1
Negotiating Your Best Offer When Selling Your Home
When you’re selling your home with multiple offers, it can be challenging negotiating your best offer. Especially in a hot market, with multiple offers, your agent must be experienced at problem solving and negotiating your best offer so you don’t end up with less money.
Earlier this year I had a house sell in Leawood South. I thought we were well priced at $400,000. By pricing your home correctly from the start, you can always expect to negotiate the price up with multiple offers.
Due to my aggressive pre-marketing plan, I had buyers and their agents lined up to see the house as soon as it came on the market. By noon, we had our first offer with 2 more to follow. By late afternoon, my sellers were prepared to choose one of the three offers.
We had an offer of $423,000, a cash offer for $415,000 and another offer for $418,000. Before presenting the offers to my sellers, I scrutinized each offer. While my sellers were tempted to accept the highest priced offer, they asked what I thought they should do.
When selling your home, if the buyers are obtaining a loan, the lender will require an appraisal. This is to make sure the house is worth what the buyers are paying for it. The appraiser is required to come up with 3 similar properties so they can justify the price.
In my opinion, $23,000 over asking price was too much for this particular home. I also thought the $418,000 offer was also exceeding the home’s value. Even though the $415,000 cash offer was the lowest price, I felt it was in the best interest of my sellers. Since it was a cash offer, there would be no appraisal involved and the buyer was willing to close within 2 weeks. After discussing each scenario with my sellers, they agreed and accepted the cash offer of $415,000.
Here’s another way to look at negotiating your best offer
What had they accepted the $423,000 offer? It was a 6 week close which meant my sellers would have waited another 6 weeks before receiving their money. They had already moved to California and were anxious to get everything finished up here. If the appraiser didn’t see the $423,000 value, worst case scenario would have been my sellers may have had to reduce their price to the value the appraiser gave it.
Did my sellers give up $8,000 by not accepting the $423,000 offer or did they actually make an additional $15,000? I like to look at the bright side of things and I think they made an additional $15,000 over asking price. It also closed in 2 weeks so they received their money quickly. That situation could have turned out differently had my sellers been greedy. They could have ended up with much less than the $15,000 they made over asking price.
What’s the moral of the story?
When negotiating your best offer, be careful that you don’t get caught up in the emotion. It’s easy to think about the money versus thinking each offer through to the end. Just remember that it’s a gamble and you could lose it all. Things could backfire and you could end up with much less money than you imagined. That’s another reason to have an experienced agent that is good at problem solving and negotiating contracts. The agent you choose will determine the results you get. Choose carefully.
If you’re thinking of selling your home going into the fall season, call me at (913) 515-3250 or contact me here. My goal is to get you the most money possible with the least amount of drama. Let’s see if what I do to get my sellers more money will work for you!
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(all data current as of 5/19/2019)
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