Working with Sellers

Negotiating for Sellers will use a lot of the same principles we discussed in Negotiating for Buyers. You’ll want to make sure you’re regularly checking in with your sellers to see how they feel about their options. While you may feel the price is good and can wait longer before a reduction, the seller’s goal may be to get it sold as quickly as possible and move on. Even if your seller started out the deal wanting to be super high priced and stand firm, their needs may have changed during the course of being on the market.

Before bringing an offer to a seller, make sure you have ALL of the pieces, including a preapproval letter from the lender. If possible, contact the lender before discussing the offer with your sellers. When I receive an offer for sellers, I will always let them know I’ve got one, but typically wait to discuss the details until I’ve given it a once over and made sure we have everything we need to accept it.

If you are in a multiple offer situation, it’s extra important to look at the pros and cons of each offer. For example, is the price higher than it will likely appraise for? Does the highest offer include any seller concessions of any kind? Did a second place offer’s agent really have their act together, they were pleasant to work with and speedy getting everything over to you? Does one offer have a more preferred lender than another? Does one offer include terms that are more agreeable to the seller, not necessarily price? Think about what is best for your seller.

Remember

• Use a seller netsheet {LINK} to illustrate a seller’s estimate bottom line for each offer you recieve. If you have a few offers, putting them side by side in the spreadsheet can make it really clear which is a better deal for them.
• Always send counter offers over to the buyers agent in writing, even if you’re negotiating verbally. We want to make it really easy for the other side to take the deal.
• When it comes to what you say, less is usually more. State the proposed terms clearly, if necessary add a supporting reason, but I find that most of the time the reason isn’t important and can sometimes be better kept to yourself.
• Do not be a party to discrimination. If buyers send over love letters that give away information as to their protected class, save the letter until after your seller has made their decision or keep it to yourself. Use your judgment here, sometimes the letter is helpful to share, sometimes it’s dangerous or detrimental.
• Remember that 5k to a seller is cold hard cash in hand. 5k to a buyer is only a slightly bigger mortgage payment every month.
• Your seller has the ultimate say, it is their house and their deal. You provide the information, they make the decision.