Negotiating house prices is a skill.
It’s a broad subject with lots of nuances. It may take time and experience to build up your skills.
However, in the short term, there are tactics you can consider and deploy.
In this blog, we’ve highlighted house-selling negotiation tactics that are well worth understanding.
9 negotiation tactics for selling your house
1. Mention that other people are interested
One of the best negotiation strategies is to keep your options open.
When you have several buyers interested in your property, it forces them to compete with each other on price.
Your position then becomes stronger.
Many house sellers pretend that they have other buyers interested even when they haven’t.
You should discuss taking this approach with your estate agent. It sometimes results in an improved offer if they tell the buyer that ‘time is running out’ due to competition.
Try not to close your options off, as they might call your bluff. It’s best to have other buyers lined up just in case.
2. Put an expiration date on your counteroffer
If you give your buyer a counteroffer, it’s sometimes worth attaching a time limit to this figure.
This puts you in the driving seat, showing you won’t wait forever. Your buyer will be forced to think more quickly.
Give your buyer a couple of weeks to consider your counteroffer. Make it clear that you are attaching an expiration date because other potential buyers are interested.
3. Agree to pay their fees
There are plenty of ways to make your house sale seem more palatable to buyers.
One of the best methods is to offer to cover the fees associated with buying the house. Examples include:
Legal fees often come to a couple of thousand pounds. So, if you’re asking your buyer to increase their offer by more than this, it might be in your interest to do so.
This strategy can ensure that their costs are covered after you close the sale. This benefits your cash flow, ensuring you have the money needed to fulfil your promise.
4. Include furniture and fittings as part of the deal
Another way you can sweeten the deal as a seller is by including furniture and fittings.
You can ask your estate agent to listen out for the buyer’s comments during their viewing. They can note if the buyer mentions liking anything in particular, which can guide you on the best items to include.
Alternatively, look around your house and offer to include anything valuable and attractive. Common examples include:
- Dining table
- Television
- Curtains and rugs
- Shelving and cabinets
- Mirrors
- A trampoline or swimming pool.
While the last bullet point might seem extreme, some people do this if they plan to eliminate these significant items anyway.
Calculate the value of what you’re offering them and how this compares to the amount you want them to increase their price. You must be making a profit for this tactic to make sense.
5. Do your homework on what else is out there
You put yourself in a stronger position when you are well informed about what else is on the market.
It gives you the power if you are in a seller’s market (more buyers than sellers – i.e., the opposite of a buyer’s market).
Make it clear that you know this and that your buyer has few other options.
This is especially effective if your buyer is on a tight schedule to move house. Perhaps they need to live in the area before they’re allowed to apply for a nearby school.
Ask your estate agent whether the buyer has indicated they’re negotiating on other properties.
Get a clear sense of what they’re looking for and then narrow down what else could apply.
This in-depth market knowledge can give you the confidence and justification to be a tough negotiator.
6. Show that you are flexible
Flexibility is desirable to lots of buyers. If you clarify that you can be flexible on key aspects of the deal, you might get a better price.
One example is flexibility about completion date. If your buyer wants to complete quickly, explain how you can make this happen.
Or if they want to delay the sale for a few weeks or months, show openness to this idea.
Repairs are another thing that you could be flexible about. If your buyers want something fixed before the sale is completed, offer it.
You might have a friend or family member to sort it out for free. Or you could ask them to pay them after the sale is complete to ensure you have the cash to do so.
7. Emphasise your positives
There will undoubtedly be positives about your house that others cannot offer. Make sure to emphasise these during your negotiations!
It’s essential to discuss this if it provides financial advantages for your new buyers.
A few examples of positives you could focus on include:
- Extra square footage: Ideal for large families
- A conservatory: Ideal as a playroom for kids
- An ‘A’ or ‘B’ EPC rating: Reduces energy bills and also enables them to rent out the property if they wish
- New schools or amenities coming to the area: Beneficial for the entire family.
Emphasise these details within the context of what your buyer is looking for.
For example, explain why a new school being built in the area (or similar examples) will drastically increase their property value in the long term.
Your estate agent should be able to guide you on the features most worthy of emphasis during negotiation.
8. Develop a good rapport
This step might seem obvious, but many homeowners forget to do it. People are more likely to be amenable with someone they get along with.
Try to build a good rapport with your buyer. You might have things in common that you can discuss.
If you develop a bond, you are more likely to look out for each other. This often translates into convincing them to increase their offer.
9. Know when to walk away
Last but not least, you must know when to walk away. As the French painter Paul Gauguin (1843 – 1903) put it:
The single most powerful tool for winning a negotiation is the ability to get up and walk away from the table without a deal.
Verbally backing out of the deal will sometimes prompt your buyer to increase their offer at the last minute.
This is why some sellers gazunder. But ideally, you’ll have other buyers lined up, so it’s not a problem if it falls through.
Remember that the longer your house sits on the market, the weaker your negotiating position. Knowing when to leave the negotiating table is a critical skill.
