Price Negotiator: The Art & Science of Influencing a Home's Price
Strategies & Tactics: Select by Stage
Use the 5 Stages below, together with the 4 Value Bands (shown in the blue bar beneath the stages) to give you the strongest framework for negotiating. Maximize your 4 Value Bands to increase your price influence at each Stage.
Select from a variety of negotiating strategies & tactics and utilize to your advantage. Use your HomeToHome’s Toolbox with your Agent’s Service Plan.
Typical Value Band Ranges (relative)
Stage 1: AGENT APTITUDE
Your Agent’s Aptitude affects all stages and your home's final price. Aptitude is measured by the Agent's Value Band (see below).
Stage 2: MARKET AWARENESS
To increase Market Awareness, Sellers and Buyers use Home Value Band (below)- as defined by a home’s qualities and market characteristics.
Stage 3: MARKET ALIGNMENT
With market alignment, Buyers and Sellers negotiate purchase offers. Strategy, teamwork, and decisive execution rule.
Stage 4 : OFFER ACCEPTANCE
Price Negotiator leverages all Value Bands to influence terms of the Purchase Offer. Dominate with a multitude of ready strategies.
Stage 5 : PROPERTY ACQUISITION
Every deal has its challenges. Price Negotiator's next set of strategies come into play as Agents on both sides must negotiate final terms.
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6 Key Factors of Your Agent that Affect your Home's Price
At Stage 1, strategically choose your Agent. Your Agent’s Value Band (below) affects all stages. Use HomeToHome’s Agent Service Plan and Agent Profile tools together with Price Negotiator strategies for choosing your Agent.
- Client Preparation: Educating client for each stage.
- Market Alignment: Aligning client’s expectations accurately to inventory, pricing, timing, and opportunity. Strategically prepare clients to win.
- Property/Purchaser Acquisition: Identifying best properties/buyers for client’s needs and executing purchase agreements.
- Negotiation: Knowing when, what, and to what degree to negotiate in client’s favor. Utilizing every skill in the agent’s arsenal to maximize value for client.
- Vendor Management: Coordinating inspectors, appraisers, lenders, contractors, etc. Developing strong list of resources for clients.
- Execution: Overall ability to orchestrate all elements of a purchase agreement to protect client’s interests.
6 Key Factors that Affect A Home's Value
Home Value Band reflects property characteristics, the seller’s timing & motivation, and the market. Use HomeToHome’s MarketPrice and RateThisHome to set realistic Home Value Bands.
- Home condition : Size, location, age, structural integrity, upgrades, staging, curb appeal
- Market Conditions : Comparables: active, pending, recently sold. Local economy
- Marketing : Price strategy, media creation, target buyer type, advertising campaigns
- Market Timing/Buyer Pool : Maximize demand of qualified buyers
- Seller Position : Timing, motivation, & equity position
- Title condition : Clean, encumbered, restrictions, CC&R’s, liens, etc.
6 Key Factors of Clients that Affect Your Home's Price
The 6 factors of Buyer or Seller “readiness” qualifies the client’s to act decisively and favorably. A strong buyer is always more attractive to a seller since they are more likely to close escrow on the home. Similarly, a strong seller is prepared and aligned with the market. Use your Lender’s Finance Plan and Profile, LoanSense and CashToClose tools to sharpen your negotiating position.
- Representing Agent: Expertise, competence and integrity
- Home: Expectations, location, condition, and list price
- Finances: Loan(s), cash position, equity, tax considerations
- Motivation: Readiness and desire to execute
- Execution: Client’s ability to cooperate with trust and honesty
- Credit: Client’s understanding of significance, qualification process, and true cost of credit
The Home’s Sold Price is the price that the seller is willing to accept and a buyer will pay. Use HomeToHome’s HomeScene tool to generate different Term Sheet scenarios when negotiating for your most favorable Sold Price.
- The List Price is the advertised price of a home. It should not be confused with a Market Price or Sold Price.
- The Home’s Market Price is what a ready, willing and able buyer will pay.
- The Home’s Appraised Value, conducted by an independent professional on the Lender’s behalf, may affect the buyer’s ability to purchase.