Home sellers can easily find themselves in a difficult position when trying to negotiate with buyers. Unwillingness to compromise can present a major obstacle in negotiations, but giving too much away during them or beforehand can amount to an unacceptable price for closing a deal.
Real estate agents can provide needed perspective that homeowners, who may be highly invested in their properties after living there for years, may lack. One important thing for home sellers to remember is the transaction cannot be entirely separated from the rest of their lives. Personal and professional factors may dictate some of a home seller’s position and tactics.
According to Bankrate.com, many home sellers end up losing money partly as a result of their efforts to avoid doing so. They may suffer from what some call the “sunk cost fallacy,” in which homeowners are unwilling to sell for less than they themselves have invested in or paid for the property. While reasonable on the surface, this attitude can prevent home sellers from striking a deal.
The market value of a home can drop despite the actions of responsible homeowners who care for or even improve their homes. Regional and local economic factors such as employment may make an area’s homes less valuable, or a surge in new construction or emigration might create competition in the local housing market.
Whatever the cause, these factors are out of the home sellers’ control. A real estate agent can provide helpful advice understanding them, thus decreasing the chance of mistakes in pricing or negotiation. If a homeowner becomes stubborn, however, the preoccupation with past value can interfere with or even prevent a sale.
Financial factors and other concerns
When confronted with these concerns, home sellers may benefit from reducing the question to a straightforward and practical one. If they stick to the current price point, what is the likelihood of finding a buyer, and how long is it likely to take?
Moving out of a home, and presumably into a new one, has substantial effects on every aspect of most people’s lives. As a result, financial considerations such as price must be weighed against the broader circumstances. If homeowners are looking to sell and move across the country, delaying to get a better deal may not be worth it. If a home seller is planning to start a new job in a new town, disposing of his or her old property in a limited time frame may be a practical necessity.
A new job often means responsibilities and a time commitment that would make continuing the sales process impractical or impossible. Similarly, other personal and professional factors might affect the decision of how to price a home and how to negotiate for it.