No buyer wants an uncomfortable confrontation with the owner of a house for sale. Therefore, when a buyer asks to negotiate on aspects of the fsbo sale, it is important for the house owner to project a calm, relaxed mood and respond to negotiation requests politely. This reduces the risk of blowing a potential sale.
The goal of a good salesperson is to handle the sale in such a way both seller and buyer walk away from the sale feeling they got something they wanted. The sales floor, then, is no place to let egos get the upper hand. Be willing to compromise on minor issues.
Elements of a Successful Negotiation
By asking a fair price for your home you greatly reduce the risk of negotiations turning nasty. Other elements that make for successful negotiations are as follows:
1.) Plan ahead. Decide before hand what aspects of the sale are negotiable, and which are not. This will reduce frustration during negotiations.
2.) When setting your house for sale by owner asking price, set it higher than your rock bottom price. Expect that buyers will ask for you to negotiate on price.
3.)Foster a calm relaxed tone and make good eye contact. Listen carefully to the buyer, and avoid the temptation to interrupt them.
4.) Keep in mind how much of the equity is saved by not going through a real estate agent when asked to reduce the price. Reducing the asking price by 2 or 3% still puts you way ahead of the game.
5.) Avoid the word “NO” when negotiating. Be willing to compromise on minor issues. Even when a point is not negotiable, take the time to explain “why.” This sends a better message to the buyer.
6.) Get everything in writing. Don’t rely on trust. Document what terms and conditions are discussed and agreed upon, and what still needs to be worked out.
Prepare a Negotiation Worksheet
By preparing a negotiation worksheet, you help the house for sale by owner negotiations go more smoothly, and the atmosphere to remain calm. You also reduce the risk of frustrations resulting from misunderstandings that could arise later.
The worksheet is not meant to be a legal, binding document. It is only to serve as a visual aid to keep track of what aspects of the sale process are agreed upon by both parties, and what aspects still need to be worked out. The worksheet will also serve as the foundation for the purchase and sales contract that should be drawn up with the help of an attorney.
The Negotiation Worksheet should include the following:
1.) The seller’s name
2.) The buyer’s name, address, and phone number
3.) A description of the property fsbo, including address
4.) The purchase price
5.) The amount of the deposit
6.) Who holds the deposit
7.) Financing information
8.) Pre-Qualification letter due date
9.) Date of final loan approval
10.) Whether or not the seller is financing
11.) Who pays for what (inspections, appraisals, repairs, attorney fees, etc.)
12.) What is included in the sale (personal property such as appliances, curtains, etc.)
13.) Other conditions of the sale (buyers must first sell their current home, maximum mortgage note %, property inspections, etc.)
14.) Anticipated closing date
15.) Rental fees if seller continues to occupy the home after the closing
16.) Notation that the worksheet is not a binding document
17.) Any other aspects agreed upon, relevant to the sale of the property</ul>
For a MS Word formatted Negotiation Worksheet template, email the editor of Virtual Real Estate Listings at [email protected]. Type “Negotiation Worksheet” on the subject line of the e-mail; include your name and email address when making your request.
By both parties being willing to negotiate and documenting what has been agreed upon, fsbo dealings will go more smoothly, with irritations kept to a minimum. And the house for sale by owner process will be a win/win situation for both the buyer and the seller.
'The attention to detail and professionalism that Troy and his staff brings to our contract drafting process is unmatched. It’s a rare occurrence to find a law firm that cares as much about your legal protection as you do. But, Doucet Co. LPA is that law firm."
Mr. Doucet and his staff handled two foreclosures and a related matter for me. I found everyone in his office to be professional, effective and responsive. Everything he handled for me got me the results I expected. I highly recommend Doucet Co., LPA.
As an attorney and former client of Doucet Co., LPA, I was very impressed with the representation of Troy Doucet and his firm. I would recommend him to all who face difficulty in saving their home or getting cooperation with their mortgage companies.
If you need legal assistance regarding foreclosure, I urge you to consider putting your complete trust in Doucet Gerling. They will employ their vast knowledge and expertise on your behalf and work to attain a great outcome for your individual needs and situation.
"Troy Doucet is one of the most gifted attorneys that we have ever had the pleasure of dealing with. He treated us with kindness and generosity. We were most impressed with his integrity and high sense of duty to us. If you are looking for an attorney to get the job done we highly recommend Troy Doucet. Our family can never thank him enough for getting our foreclosure problem solved."
My company has worked with multiple law firms in the past, but none have come close to matching the quality we are seeing from Doucet & Associates. If you want an attorney who has a deep understanding of both the legal system AND business, hire them – you won’t be disappointed.
"Mr. Doucet worked wonders in my case. He stood up for me when I felt overwhelmed and helpless and kept my credit rating and future intact. Thanks you so much for helping me and my family."
"My family and I would like to send a thank you with sincere gratitude for all the time, hard work, and long hours set a side daily to represent and speak on our behalf during a very challenging time in our life. Our success is a reflect of your commitment. Thank you Troy Doucet & law firm."