So you’ve decided to sell your New York City home. You’ve carefully assessed the current NYC market data. You’ve completed any desired updates to increase your home’s value. And you’ve even hosted a killer open house, complete with Architectural Digest-level staging. Now all that’s left is to sit back, relax, and let the offers roll in… 

But what happens if the offer experience is anything BUT relaxing? In today’s market, it’s not unheard of to receive multiple competing offers that you must carefully sift through and weigh. In addition to being potentially overwhelming, it can also be confusing. How do you know which is the best possible offer? And is it okay to negotiate with potential buyers? 

If you’re asking yourself these questions, don’t fret: StreetEasy is here for you. We’re breaking down everything you need to know about real estate negotiation and how to assess offers when selling your NYC home — so that when the time comes, you’ll have the confidence to seal the deal on your terms.

The Art of Real Estate Negotiation: 9 Tips For Selling Your Home

First Thing’s First: Crunch the Numbers

To help wrap our heads around the assessment and negotiating process from a seller’s POV, we spoke to Luke Hoback, a StreetEasy Expert and Licensed Real Estate Salesperson from global boutique real estate brokerage firm The Agency. 

Having represented countless sellers in the NYC area, Hoback has one crucial piece of advice to keep in mind when starting a conversation about home prices: “The first, and arguably most important step, is to determine whether the buyer can realistically afford the apartment, qualify for a mortgage (if they’re getting one), and if they’re a good candidate for the board to approve (in the case of a co-op).” 

Once the buyer’s credibility has been established, sellers can move forward in talks around the price and terms of the offer with peace of mind.  

Read on for more of Hobacks’ pearls of wisdom.

Proper Pricing Sets You Up for Success

If the thought of wading through multiple bids gives you a migraine, your best negotiating tool is pricing your NYC home properly from the get-go. 

“Listings that are priced right and presented well are still moving quickly in this market,” assures Hoback.

Cultivate a “Win-Win” Attitude vs. a “We Win, You Lose” Mindset

It’s important to enter any negotiation with the right perspective, keeping in mind that both sellers and buyers have their own valid objectives front of mind. 

“Ultimately, both sides of the transaction’s goal is to walk away from the negotiation feeling like they’re getting what they want,” stresses Hoback. 

Framing negotiations as a seller vs. buyer experience creates a binary that’s simply untrue and ultimately unproductive. Hoback further explains that coming into talks with compassion and empathy for both the seller’s and buyer’s POV is critical for constructive talks. It’s a strategy that’s both kind and useful, as it encourages collaborative conversation that can “appeal to what matters most [to both sellers and buyers] and move everyone toward a meeting of the minds.”

Pay Close Attention to the Current Market

One factor that is massively important to consider when negotiating and assessing offers for your NYC home is the current market. Understanding what’s proven to be successful or not in the exact moment that you’re looking to sell can help determine your plan of action. 

For example, Hoback sheds some light on a timely situation: “In today’s market, particularly in Manhattan, we need to be really deliberate about how we engage with every offer, because there’s a distinct possibility that it could take a lot longer to get another one if we don’t. In a super hot seller’s market, we can be more aggressive, but that’s not always the case right now.”

Open Houses Reign Supreme in Real Estate Negotiation

Maybe you’re the type of seller that’s excited about the prospect of fielding many bids on your home. When it comes to creating a buzz around your abode, one thing is clear: Nothing beats a traditional open house.

Hoback paints a compelling picture to illustrate why an open house helps generate more traffic than appointment-only showings: “Think about it — if you were a buyer and showed up to an open house with 10 other parties there, you’re immediately going to feel the pressure knowing that so many other people are interested. A crowded open house creates a sense of urgency that you can carry throughout the negotiation to get the best possible price and terms for your sellers.”

What About a Bidding War?

When asked about how to handle a multitude of offers, Hoback was quick to stress that “there’s not a one-size-fits-all answer to this question.” In addition to considering the actual content of each offer, highly subjective factors such as individual preferences can affect the way a seller chooses to assess and approach real estate negotiation. 

Hoback went on to explain that — in general — there are typically two different ways to handle multiple bids: “Either you negotiate with each offer individually, or you go to a ‘Best and Highest’ where all of the interested present their strongest offers blindly and the seller selects the strongest candidate to send a contract out to.”

Some Seller Concessions Can Be Beneficial For All Parties

What happens if you’ve successfully weighed all bids and identified a buyer you’d like to work with, only to find that they’re asking you as the seller to front money for closing costs? Is this a deal-breaker, or simply a creative way to help get an offer across the finish line? 

“We are definitely seeing a lot more seller concessions to get deals done in today’s market,” confesses Hoback. Sellers taking on typically buyer-bourne closing costs like flip taxes, rate buydowns and renovation credits can be a great strategy to “bridge the gap and make a deal happen if both parties are close but not quite there yet.” Plus, certain concessions don’t necessarily mean extra financial burden on sellers. “For example, a rate buy-down, in many situations, is a no-brainer for a seller because they will net out the same amount of money at the closing table that they would if they dropped the price by the same amount of the buy-down credit,” explains Hoback.

Prioritize Communication, Collaboration and Creativity

While selling your NYC home can be a stressful process at times, it’s important to know that a successful sale is always possible… especially when prioritizing the 3 C’s: Communication, Collaboration and Creativity. 

As Hoback states, “Overall…agents should be asking specific questions of their clients to really understand what their goals are, and thinking creatively to find solutions that move the needle toward the end goal of a successful sale. We can’t just put our listings up and hope that buyers come through the door.”

Want More Helpful Selling Advice? Work With an Experienced Listing Agent

While we’ve provided a thorough overview of things to consider in the real estate negotiation process, there’s really no substitute for personalized guidance. Enter StreetEasy Experts. These are experienced listing agents like Hoback who have a proven selling track record and who offer invaluable insight into the NYC market. 

Carlo Romero from the StreetEasy Concierge team explains it best: “StreetEasy can offer sellers access to the largest audience of homebuyers in New York. We can also offer data on the market and listing agent performance that sellers won’t be able to find anywhere else.”

To get matched with the perfect StreetEasy Expert for your listing, simply reach out to the StreetEasy Concierge today.

_{StreetEasy is an assumed name of Zillow, Inc. which has a real estate brokerage license in all 50 states and D.C. See real estate licenses. StreetEasy Concierge team members are real estate licensees, however they are not your agents or providing real estate brokerage services on your behalf. StreetEasy does not intend to interfere with any agency agreement you may have with a real estate professional or solicit your business if you are already under contract to purchase or sell property.}