This is how price negotiation works

It's possible to determine the value of a property. However, the final selling price is a different story. Before the sale is finalized, potential buyers often want to negotiate the price. Those who aren't experienced negotiators will find it difficult to get their desired price. This starts with the pricing strategy: Is it wise to set a high price for more room to negotiate? Or is it perhaps better to set a low price and hope that interested parties will outbid each other?

What exactly is being negotiated?

Only an accurate valuation can serve as the basis for a pricing strategy and price negotiations. To have a market-based price as a basis for negotiation, you should have your property appraised by a professional real estate agent. Only on this basis can you confidently defend your asking price.

You don't simply list your property on the market at its assessed value; instead, you consider your marketing strategy. Often, simply raising the price to create more room for negotiation isn't the right approach. In fact, this frequently backfires. Instead, it often makes finding a buyer difficult, as such an offer can appear unprofessional.

Given the current high demand in the real estate market, it is sometimes more sensible to choose an asking price that is below the assessed value. This can encourage several potential buyers to bid.

Another option would be to set a moderate price for your property, only slightly above its actual value. This is usually perceived as fair. Generally, this approach results in short negotiations and ultimately both parties are satisfied with the sale price.

How is the negotiation conducted?

In price negotiations, it's crucial to project confidence and composure. You know precisely the value of your property and what you can realistically ask for. Potential buyers often point out flaws and try to lower the price. Therefore, it's essential to be aware of all defects and address them openly. If your property's value has been professionally assessed, any existing defects will already be factored into the asking price. From this perspective, it's easier to defend your price. However, those with limited negotiation experience and a lack of familiarity with the current real estate market often struggle to consistently find the right arguments and avoid being thrown off balance by persistent inquiries from potential buyers.

A professional real estate agent, on the other hand, knows exactly how to negotiate a price with a buyer thanks to their many years of experience. They are familiar with all the tricks buyers use and can counter their attempts to drive down the price with their in-depth market knowledge. Furthermore, most property sellers have very little time in their daily lives to thoroughly prepare for negotiations – to ensure nothing goes wrong.

Are you still unsure about the best negotiation strategy for your property? Contact us without obligation! We'd be happy to advise you.

Legal notice: This article does not constitute tax or legal advice for any specific case. Please consult a lawyer and/or tax advisor to clarify the facts of your individual situation.

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