Are you in the process of selling your home? If so, you must understand how to negotiate with an interested buyer. Remember, the price you settle on will determine your bottom line. 

One survey revealed that 30 percent of prospective sellers anticipate getting their asking price in 2024. They're also expecting to sell their properties for approximately $462,000. 

That might be overly optimistic, considering the median home price all over the country stood at $424,900 in March. This statistic underscores the importance of negotiating well to get the best sale price instead of settling for an average offer.

Here, we'll give tips on increasing your home's final purchase price and securing the most favorable terms. 

Start a Bidding War

A bidding war can help you sell your home for a price higher than your initial listing. It happens when multiple buyers make offers on a property for sale. Such competition can increase the home price and encourage potential buyers to offer more favorable sales terms. 

Note that starting a bidding war among buyers is most effective in a seller market. That means there's more demand from buyers than homes available for sale. Likewise, generating buyer competition is achievable when your home is well-maintained and listed at a reasonable market price. 

Counter at Your Asking Price

Buyers usually anticipate some level of negotiation, so expect their offers to be lower than your asking price. As a seller, avoid immediately accepting their initial offer as it will often be less than the amount they're ready to pay. 

Suppose you receive offers below your asking price. Refrain from countering below your listed price out of fear of losing the potential sale. Instead, stick to your asking. It shows buyers you know the value of your home and will only accept what it deserves. 

This strategy may cause some buyers to walk away. However, serious buyers will remain interested and return with a reasonable offer. 

Set a Time Limit on Counteroffers

Time is critical in negotiations, especially if you want to sell your home quickly. Consider setting a time limit on your counteroffers to foster a sense of urgency. It will compel the buyer to respond with their best offer sooner. 

As a result, you can either have your home under contract or consider other offers with less waiting time. When putting an expiration date on the counteroffer, don't make it too short that it will scare off buyers. Instead, aim for a timeframe shorter than your state's standard duration for real estate contracts. 

Request Buyers' Highest Offers

Another strategy is to request potential buyers to submit their highest offers. This tactic is commonly known as the buyer's best and final offer. This approach allows you to see the true value of your home. You can use it to negotiate confidently and boost your chances of obtaining the best price.

It allows you to streamline the negotiation process by focusing on the most competitive offers. You won’t have to schedule rounds of negotiation with each potential buyer; you can just select the best offer. 

Refuse an Offer Outright

Rejecting an offer outright is a powerful negotiation tactic. If an offer falls short of your expectations, you can decline it without providing a counteroffer. Alternatively, you can encourage the buyer to submit a new offer. It shows that you value your home at the listing price. 

This approach can motivate serious buyers to reassess and improve their offers. In the best-case scenario, the new offer will be one that you believe is financially better. It should align more closely with your financial goals or perceived market value. 

Secure the Best Deal With the Right Strategy

Negotiating the right price is essential to securing the best deal for your home. Buyers will attempt to offer a lowball price and pay less for the property. But you have significant negotiating power as a home seller. 

Of course, you must be ready to compromise. But don't give in to pressure and agree to an offer that doesn't meet your expectations. Remember, the best approach depends on your local housing market and your home's condition. 

Equally crucial is knowing when it's time to end the negotiations. Else, you might lose the interest of potential buyers. A knowledgeable real estate agent can advise on negotiating strategically and closing the best deal.