Seller Tips and Risks

1) Biggest risk: paying buyer closing costs and having an appraisal shortfall. This situation is exacerbated due to buyer’s agent’s practice of increasing the sales price to offset the seller’s concessions adding more appraisal risk.

2) Best way to maximize your sale is to negotiate slowly. That’s PIQs job!

3) Does an offer deserve a counter? Not always, even if it’s a good offer because a counter means dropping one’s price and handing control over to the buyer’s agent without exploring whether the market will pay the list price or higher. As well, by countering, the seller is removing any buyer anxiety about the uncertainty of a counter. Preserving that anxiety is quite powerful and should not be given away easily.

4) Does an offer time deadline have to be adhered to? It depends on how a seller feels about being pressured by a buyer’s agent. By not countering by the deadline, the seller wins back control. The risk is the buyer’s offer terminates or is withdrawn at that deadline. But, offers can be reestablished if both parties have an interest in doing business. Buyers just don’t disappear and time deadlines should not be feared!

5) If an appraisal comes in under the sales contract price should a seller negotiate or hold firm at the contract price? The answer goes back to the buyer’s financial strength, attitude about the home and their agent’s disposition. Some buyer’s agents believe appraisals are the rule to buying a home. Often it is the seller’s best strategy to hold firm at that sales price. Just as long as the buyer has ample cash to pay the difference. Hence the reason why sellers shouldn’t pay buyer’s closing costs.

6) Sellers should not list their home “as-is” because that sends a message to buyers and agents that something may be wrong with the home. If an offer comes in with “repair limits” of 1.5%, a good strategy may be to counter with “$500 or zero” turning that offer into a contract similar to an “as-is”.

7) Sellers should not add language to a listing that furniture is available with the sale unless it’s a seasonal rental (then include) because buyers will not pay for it, they will just want it! Best way to negotiate furniture is to provide buyer with a price list after they negotiate a contract.

8) Never fear losing a buyer or an offer. The best approach is to assume there are three qualified buyers for every property and buyers don’t just leave a deal; they hover and agonize over paying too much. Patience wins big for sellers when negotiating a final price.

9) Comparable sales data is not an indicator of value as comparable sales are a lagging price indicator. Comparable sales often lag the market by 3-5%. As well, sellers, in a seller’s market, can often achieve a premium to the market of 3-5%.