Selling a house is like learning to drive: it seems easy, until surprises arrive. While a new driver takes his driving school classes, he studies the theory and prepares meticulously for the test; an owner appraises his home, looks for the best real estate agency, prepares the property and puts it up for sale. But none of them is guaranteed success until they pass the examination stage. The driver can be part of the 73% of applicants who do not pass the exam the first time, according to the DGT. The owner, for his part, may be forced to lower the price of his home when he faces the moment of truth: the buyer's counter offer.
According to the specialists at HelpMyCash.com, a website dedicated to real estate comparison, there is a 17% gap between the prices at which homes are published on real estate portals and their final sale value. “While the last report from the notaries showed a price per square meter of 1,590 euros in December; Idealista reported a value of 1,921 euros during the same period”, the experts explain. This difference between the price at which a home is published and its final sale value is a sign that, in every operation, there is an instance of negotiation.
Now, how can you carry out a successful negotiation and minimize the price drop?
HelpMyCash experts advise doing more than one appraisal before defining the price of the property. They suggest, in effect, contacting at least two online real estate agents, two traditional ones and at least one iBuyer, which are companies that buy houses in cash. By collecting different appraisal reports, the owner will be able to get a more objective view of the market price of his home. He will even be able to identify if a real estate agency is overvaluing the property to capture his attention and win him over as a client, or if he is valuing it downwards to close the transaction faster.
With regard to negotiation, specialists consider that having several appraisal reports allows the buyer to be shown different proofs of the price. In this way, the owner has firm and somewhat more objective arguments to defend the price and reduce the negotiation margin.
Typically, buyers compare the prices of homes in the area. If they identify that an owner asks more than the rest for the same area and distribution, they will surely request discounts. However, the house could have a differential value that makes its price higher.
Does the house have views or a terrace? Is it characterized by its brightness? Is it newly renovated? These features may justify a higher price than other similar properties.
“There is some taboo around the negotiation, but in reality, it is one more step from the sale. The differences between the price at which the house is published in the portals and its final sale value have always shown gaps of around 15%. At times, such as in 2012, this percentage has even exceeded 30%”, explain the specialists at HelpMyCash.com.
For all this, they advise losing fear of negotiation and understanding the requests for discounts as an opportunity to reach an agreement and achieve the goal of selling the home. “Each owner will know how far he is willing to negotiate. But the basis in all cases is to make a correct appraisal of the home”, conclude the experts.
