With the housing market remaining relatively hot across the country, sellers are quickly finding the ball is in their court.
Low mortgage rates are likely here to stay for the foreseeable future. While the economy did experience positive news thanks to the June jobs report, the Federal Reserve might still feel hesitant about raising benchmark rates anytime soon, particularly during the upcoming July Federal Open Market Committee Meeting.
With low interest rates comes an increase in prospective buyers. According to the latest information from Bankrate, 30-year fixed-rate mortgage rates are at 3.57 percent. Even with a 7.2 percent increase from the week of July 4, rates are still at low and enticing levels.
Because of the influx of buyers, you will likely notice an increase in the competition to buy your home. This includes many more deals you have to consider as buyers look to get the best price. But the key is to know who to deal with and how because you don't want to receive and accept a lowball offer.
Here are some ways you can effectively negotiate with potential buyers in order to secure the best possible sale.
Set a realistic price
With home inventories tightening, the argument can be made that the current landscape favors sellers. As such, you might look to get as much out of a sale as you can. However, you still have to be realistic when setting an asking price. According to Trulia, you don't want to set the price based off how much you want to net from the sale.
Instead, talk things over with your real estate agent to discuss a viable asking price by seeing what other similar homes are going for. But don't always think buyers will come flocking to your home simply because there aren't many other options available. Even after setting a reasonable price, you might not see much movement with regard to selling your home.
Try not to be too stubborn because if you refuse to drop the price or start even lower, you might lose money by still having to pay the mortgage and associated utility bills. As such, factor in the cost of keeping the home on the market when settling on a price. In some instances, selling lower than you what your originally envisioned is a better alternative than waiting for months to go by without any takers.
Keep your emotions in check
When selling your home, never let your emotions guide your decision making. It's best to stay as calm and collected as possible throughout the whole process.
One way to keep your emotions in check might be to delegate certain duties. For instance, talk with your real estate broker and have him or her handle prequalification checks and more of the technical aspects. This can then let you focus on negotiations with the buyer and working with him or her to find middle ground, especially when it comes to the home inspection.
As the summer real estate market remains strong, you have to learn the art of negotiations.