In negotiations, leverage is the power that one side may have to influence the other side while moving closer to their negotiating position. A party’s leverage is based on the ability to award benefits or eliminate costs on the other side. In today’s market, buyers have compelling reasons to purchase a home now: To own a home of their own To buy before prices continue to appreciate To secure a mortgage at a historically low rate, while they last These buyer needs give the seller tremendous leverage. Most already realize this leverage enables the homeowner to sell at a good price. However, this leverage may also be used to negotiate time to find their next home. The homeowner could sell their home to the buyer at today’s price, which will enable the purchaser to take advantage of current mortgage rates. In return, the buyer might lease the house back to the seller for a pre-determined length of time while the seller finds a new home or has one built. This gives the buyer what they want while also giving the seller what they need. It’s a true win-win negotiation.
This is the perfect time to maximize profits while selling a house. NAR just released a study showing that bidding wars are at an all-time high. The study reveals that when comparing the first quarter of last year to the first quarter of this year, the number of offers on homes for sale doubled from an average of 2.4 to 4.8 offers. However, Utah statistics show that every listing is averaging 7 offers which is more than any state in the US. Whenever there’s a bidding war, the price of the item for sale escalates. If a seller is looking for a top-dollar sale, there’s no better time to sell than right now.
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