The traditional way for a homeowner to sell their home is listing in a local MLS, Multiple Listing Service, through a real estate agent/broker. The real estate company charges a listing fee, normally a percentage of the selling price, and then advertises the home for sale to the public and to other real estate brokerages through the MLS. If another brokerage brings a successful buyer, the commission paid by the seller is split between the two brokerages.
One of the most important requirements for the listing agent is to help the homeowner to properly price the home to get it sold within their time goals. The agent will do a market analysis and compare the home they’re listing to similar others recently sold and currently on the market. From this research and discussions with the owner, a listing price is decided upon.
It is common for a potential buyer to make an offer to purchase that’s lower than the asking price, sometimes much lower. This depends on the current market conditions, the number of similar competing homes in the market, and how realistic the listing price is to begin with. The seller must then consult with their listing agent and craft a counter offer, usually asking for more money than originally offered by the buyer.
This counter offer process can bounce back and forth a number of times, and can include negotiations on other items besides price. The owner seller should make every effort to keep emotion out of the negotiation process and attempt to get the buyer to the closing table. When dollars separate the two, it can help to determine how much it’s costing to hold onto the home and how long it may take to get another offer and get it to closing.
Taxes, insurance, upkeep, and how much prices on a replacement home could climb while you’re searching for another buyer should all enter into the negotiation thought process. Sometimes taking $5000 less than you wanted could save you much more than that by the time you get a successful buyer to the closing table.
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