As a home sale progresses, negotiating leverage usually switches from the seller to the buyer. However, there is a way for the seller to maintain their leverage throughout the transaction.
I believe that negotiations revolve around leverage—who has it, when they have it, and when they can take advantage of it.
At the end of the day, during a home sale, the seller has more leverage at the beginning of the transaction.
This is because this is the period when the buyer hasn’t been able to secure the home yet and may still be competing with other buyers. After buyers make an emotional connection to the home that they want, a certain fear inevitably arises that they might not be able to get it. This makes them more likely to be deferential and give concessions on certain things.
After a home goes into escrow, however, the leverage switches. Why? Because at that point, the seller can’t necessarily sell that home to other buyers anymore. The buyer knows this and takes advantage by asking for more repairs.
If you’re a seller, however, there are ways to keep the leverage in your corner for much longer. The best thing you can do is get as many inspections up front as possible. Find out everything about your home that you can and present that as a marketing tool for the buyer. That way, when the buyer gets ready to submit an offer on the home, they’re also going to see those inspection reports. When they write the offer, you can use those reports as leverage to demand an open, transparent negotiation and balk at any undue repair requests.
Not only does this tactic save thousands of dollars, but I’ve had sellers do this who have had buyers accept their house as-is. Every situation is different, but this core strategy has a knack for transcending the who, what, when, where, and why.
If you have any questions or you want to talk about your selling strategy in particular, don’t hesitate to reach out to me. I look forward to helping you!