If you are a seller and are receiving an offer on your home in this current market…  Congratulations!

These are trying times for sellers and it’s not easy competing against the bad news in the media, tight credit and a record amount of other houses for sale.

So no matter how good or bad your offer looks at first, keep these tips in mind…

1. Don’t worry about the price. “It’s way too low!” That may be your first thought, but don’t panic.  This is just a FIRST offer.  The buyers are testing the waters to see if you are one of the “desperate” sellers that they are seeing on the news.  If you panic and shoot it down immediately, you may sever ties with a buyer who is ready, willing and  able to buy your house!  Treat it as a serious offer.  Which brings us to #2…

2. Make a realistic counter offer. The prospective buyer doesn’t think that you will accept their first offer and are most likely expecting a counter offer.  The goal here is to avoid a long and tedious back and fourth negotiation and also to avoid insulting the buyer.  If they low ball you, don’t send them a “Suck on this” counter offer of $1 less then your asking price…   That will only show that you are a difficult person to deal with and not serious about selling your home.  My advice to to make a counter offer near your absolute bottom line with a meaningful letter attached to the contract explaining exactly how you came to this bottom line price, siting comps and unique aspects of your home.  Remind the buyers how far off your asking price this counter offer is in both dollars and percentages.  The buyer should respect your honesty and logical negotiation.  Sometimes they will accept your counter.  Sometimes they will try for a few thousand less and occasionally they will be unreasonable and stick to their low ball.  This brings us to #3…

3. Don’t be afraid to walk away. You want to sell your home and you’ve tried a logical negotiation but this buyer is looking for a steal.  This may not be the buyer for you.  If you’ve tried your best and you can’t come to terms, don’t be afraid to respectfully end the negotiation.  If you’ve been logical and scientific about your negotiation, the buyer will remember it.  Occasionally they may even come back after a few other failed low ball offers on other homes.

4.  Don’t forget to budget for repairs. The price negotiation is just the beginning.  Remember that the buyer will send in a keen eyed inspector to find all sorts of small but potentially costly items of concern.  You will typically be able to bill the repairs to closing but make sure to leave a few thousand dollars in your budget to pay for these repairs.

The number one thing to remember is to try to keep the process non-personal.  At the end of the day, this is a business transaction that is all about the numbers.  Sure it’s your home and is full of memories, but remember that those memories come with you.  The numbers have to make sense for a buyer and you wouldn’t want to overpay for your next house either…

So if you’re looking at an offer, consider yourself lucky!  Good luck with the negotiation!