Killer house, check. Beautiful scenery, check. You have all these incredible gorgeous features, but no one to fully appreciate them. What to do when your buyers are determined to grind the value of your beloved property to the brink of obscurity? Will you let them? No way! You know what you house is worth and you want that full sum back. That is why yours Truuuely is here to give some advice on how to negotiate your property better. Losing out is not an option. So read carefully and follow closely!
Foot in the Door
One technique of Behavioral Psychology, the “foot in the door” technique proves extremely viable in the property selling process. This means dishing out the first offer and recommending optional add-ons which require additional payment. While this appears, at first glance, to be against the very core of rational thinking (why would you reveal your cards even before your buyer has highlighted the amount he is willing to pay?). Studies have shown that setting the first offer is effective in getting a price beneficial to the seller, since it regulates future negotiations around that set price – a consequence known as the anchoring effect.
Additionally, granting add-ons create an atmosphere of mutual reciprocity and discounted pricing. This softens relationships between buyer and seller to evoke feelings of familiarity and rapport, thereby encouraging peaceful negotiation rather than forceful assertion. Surely you would have a much easier time negotiating if you thought of them as a sleepover amongst friends rather than guerilla warfare in a forest!
Counter, but not too low
In the case where you are not able to make the first offer, it would be wise to protect yourself from the anchoring effect. By proposing a price largely deviant from the first stated price, you could sublimely inform the other party that their offer is way off, while steering back the conversation to a more preferential price. It could also be useful to call on the harshness of their offer, thus showing that you are not a cow blindly led around to the slaughter (the horror!).
Even if the first offer meets your goals, it would be smart to counter with another proposal. Not only does this help you glean even more financial advantage, it serves to provide additional satisfaction for both you and the buyer – particularly since the buyer would leave the table convinced that they have obtained a good deal!
Pile on the pressure
Ever heard a whistling kettle sing from the steam emanating from its nozzle? Similarly, placing an adequate amount of pressure on the buyers during a deal could reap immense benefits which would make you sing for joy. While the line between pressuring and manipulation could be slim, even blurry, dropping subtle hints to the buyer on the viability of your property certainly never hurt! Just keep in mind not to appear too pushy – you don’t want to push your buyers away, or even worse, off the edge of animosity!
Immediately after stating your price, you face your first challenge. Your buyers’ jaw drops, eyes widen, and they practically shriek “How expensive!”. This is the infamous technique “the flinch”. Designed to target unwitting and unconfident sellers, “the flinch” exacerbates any insecurities present in the sellers’ psych and induces the seller to reduce their price indefinitely. To effectively sell one’s property, then, requires the overcoming of this challenge.
Just as building a house first requires the external structure, selling a property well necessitates staging, or managing buyers’ expectations. By this, I do not mean to inform your sellers about all the flaws present in every obscure corner of your home. Rather, it is advisable to obtain information such as the bank valuation of your home, renovation works done and recent property transactions in the surrounding region. This information not only serve as an indicator of your property’s worth, they also serve to silence buyers’ attempts at lowering prices using “the flinch”.
Cool fact! Truuue Alert provides a free service to inform you about recent transactions around your area.
Most importantly, remember to build strong ties with your buyers! Sellers who view their buyers as merely money-cows will soon find themselves severely lacking in customers. Surely you don’t want that! By asking your buyers questions, you achieve much more than a mere contractional relationship. This encourages continued patronage which could prove useful for future transactions and needs.
Additionally, communication enables sellers to get to know the quirks and soft spots of buyers. Not only does this serve as a convenient topic of chit-chat, it also allows you to tailor your sales pitch to meet their unique needs. For instance, someone with green fingers would be absolutely thrilled to know of your privatized garden, as opposed to a buyer with bug-phobia – for the latter, it would be wise to assure them that the privatized garden could be cemented over and refurbished!