When you sell a property, you naturally want to try and get the maximum value for it. For that reason, it helps if you know a few things about how to negotiate a higher house price when selling.
We know that negotiating on price can be a stressful and even awkward time. But, with these tips, you can look to secure the highest possible sale price for your home.
Know How Much Your House Is Worth
When you put your house on the market, you should ideally have had at least three different estate agents visit and provide you with a valuation.
A good estate agent will know the local area and the recent sale prices of comparable properties in the area.
Therefore, if all three agents come up with a similar figure, that’s probably not too far from a realistic sale price.
If your home has been on the market a long time, or you are not sure your estate agent has valued your property correctly, you can always bring in a chartered surveyor to give you a valuation via a HomeBuyer Report. You’ll have to pay for this but you can use our tool to compare chartered surveyors in your area.
Once you are happy you’ve had a realistic valuation of your property, you’ll know when you receive an offer if it is fair, or if you should push for a higher price.
Notify Potential Buyers Of Any Other Interest
If someone puts an offer in for your house and you still have other viewings lined up, don’t be afraid to mention this to the potential buyers. This can often encourage them to make a higher offer there and then, as they don’t want to run the risk the other interested party will outbid them.
If the buyer does not increase their offer, or you’re still not ready to accept it, let them know you are considering their offer but would like to let other viewings go ahead first. Then, make sure you notify other parties that you’ve had an offer.
Letting potential buyers know of other interested parties and offers is not only fair to them, it also increases the urgency and can lead to much higher offers. It can even start a bidding war!
Invite Sealed Bids
If you’re lucky enough to have lots of interest in your property and multiple offers, you can ask your estate agent to invite sealed bids from all interested parties.
This basically means that all potential buyers put in one single offer, and then you, as the seller, get to choose which one to accept (if any – you’re not obliged to accept any of the offers!).
As the buyers can only put in one often, they’ll usually put in the highest amount they are willing to pay, which can sometimes be even higher than the asking price.
Be aware though that sealed bids will only work if you have at least 2-3 serious buyers. There is also a higher risk of ‘buyers remorse’, where the buyer puts in a higher offer than they are comfortable with and become more likely to pull out of the purchase further down the line. Therefore, sealed bids are not without risks for the seller.
Take The House Off The Market
If you’ve had an offer which is very close to your ideal selling price, but not quite there, you can try and get the price up a little more by declaring the price at which you’ll take the house of the market.
Buyers want houses taken off the market once their offer has been accepted because it significantly reduces the chances of them being ‘gazumped‘ (being outbid by another party after your offer has already been accepted). Therefore, this can be a great way to bump up the offer price that little bit more.
Of course, once you have accepted an offer on the agreement that you’ll remove it from sale, make sure you stick to the agreement or you may lose your buyer altogether.
One thing everyone hates is being stuck in a chain. Even if you’re ready to move, if part of the chain isn’t, then you’re going nowhere.
That is unless someone decides to take themselves out of a chain, either by buying their next property without first selling or by moving into rented accommodation until the sale is complete.
If you’re in a position where you can remove yourself from a chain, or were never in a chain to begin with, make sure the buyer is aware as this can help push up the offer price.
Throw In Extras
Did the buyer fall in love with your sofa or that antique cupboard in the corner? If so, it may be worth offering to throw such items in with the sale to encourage a higher offer.
White goods can also be a persuasive factor, especially for first-time buyers who need to kit out a new house. It also gives you one less thing to worry about on moving day and gives you a chance to renew or upgrade your furniture in the process.
Get Any Repairs Done
Ideally, if your property needs any maintenance work, you’ll get this done before putting it up for sale. This alone can help attract more buyers and gain higher offers.
However, if you didn’t repair everything, or just missed something, and your prospective buyer is trying to reduce their offer as a result, it may be worth offering to get the repair done yourself. This could be done instead of accepting a lower offer.
Just make sure that it’s cost-effective to do the work rather than accept the lower offer!
So there we have it, a few good tips on how to negotiate a higher house price when selling. Don’t forget that there are also a number of ways to get higher offers for your house before it’s listed on the market.
We’ve also listed 101 ways to sell your property faster, and many of these will also increase your likely sales price too!
If you are also buying a property, or just want to understand the techniques buyers will use to get the best deal, don’t forget to read our guide on how to negotiate a lower price on a property.