Negotiating the right price

Determining the value of a property is one thing. Realizing the desired price in a negotiation with the potential buyer is quite another. Is it better to state a price that is too high in order to have a good basis for negotiation or should you rather start small and hope that the prospective buyers will outbid each other?

Before you start negotiating the price, it is important that you know exactly how much your inherited property is worth. You should have the value estimated by an expert so that you can defend it confidently in a negotiation. However, you do not necessarily have to use this value as a basis for negotiation, but can consider a suitable pricing strategy. Property heirs often make the mistake of setting the price too high in order to have more room for negotiation. However, this tactic is problematic, as a price that is too high makes the offer appear dubious and deters potential buyers. Demand on the real estate market is currently very high. It is therefore much more advisable to choose a sales price that is below the real value and thus encourage various prospective buyers to bid. Alternatively, you can also opt for the moderate price strategy. This is only just above the real value and is therefore perceived as fair. This strategy leads to a short negotiation period and a sales price that both parties are satisfied with in the end.

As in any negotiation, it is important to be confident when negotiating the price of a property. Customers often specifically point out the defects in your property and hope to lower the price as a result. You should therefore be aware of all possible weaknesses and deal with them openly from the outset. This will make it clear that you have already taken these defects into account in your price calculation. For someone who has little negotiating experience and is also not particularly familiar with the real estate market, it can sometimes be difficult to always put forward the right arguments and not be thrown off course by persistent questions from prospective buyers.

It therefore usually makes sense to leave the price negotiations to a professional marketer who knows exactly how to deal with buyers and is well informed about the market. Finally, thorough preparation for the negotiation meeting is also necessary, which most sellers have little time for in everyday life.

Are you still unsure about the best negotiation strategy for your property and would prefer to hire a professional? Contact us now with no obligation. We will be happy to advise you.

Photo: © Andrew_Rybalko