The Art of Negotiations

Posted in Buyer Blog | 16/11/2012

Windsor Property

Windsor Property

We have often discussed negotiating skills when selling and buying a home.  This is usually the most intense period in the whole real estate process.  Emotions are usually on edge, sellers want to get the top price for their home, while buyers, naturally want to get a deal.

Let’s review some of our best advice when BUYING a property.

Don’t Lowball When Priced Right:

When a home is priced to sell and correctly, then nothing usually good happens when you make a very, very lowball offer.  Almost always, the sellers get offended and they won’t consider your offer.  Today, we are seeing more bidding wars than we have in the past several years on homes that are fairly priced.  If you really want the home, then make a bid where the negotiations can start on a positive note.

Curb Your Enthusiasm:

Keep your emotions in check when bidding on a home.  By bidding from a position of strength the sellers will more than likely take you very seriously.  Stick with your budget always and be ready to walk away if negotiations stall.  There are more homes out there and if you have that attitude, sellers will listen.  The one possible exception to this rule is if there is a bidding war.  At that point, it is good for a seller to know how much you love their home.

Walk Away:

As we mentioned above, be ready to walk away should a seller not bend.  Take my word for it; buyers often think that there is only one house for them, when in reality, there are plenty.  Walking away from a difficult seller is always hard, but almost always a blessing in disguise.

Set Deadlines:

Don’t let a seller take their time when going over your offer.  Ask for a deadline, usually 24 hours, for a response.  Anything longer can mean that a seller could be waiting for a better offer.

Creative:

If you really, really want a home, and you are only separated by a small amount in the price, then ask the sellers to make some repairs, or throw in some furnishings if you would like to stay in the home.

Here Are Some Negotiating Tips When Selling Your Home:

Research:

Carefully work with your real estate agent to determine the proper price for your home.  Research your competition and see what comparative homes have sold for in your neighbourhood.  If you price your home too high, you won’t attract serious buyers.  If you price it too low, you will have lots of buyers but won’t get what your home is worth.

Get Your Home Ready:

Make sure your home is in the best possible condition so you can negotiate from a better perspective.  If your home has seen better days, then buyers will more than likely give you a low-ball offer.

Everything Is Negotiable:

Remember, if you receive an offer that is less than desirable from a motivated buyer, but other offers are not coming in and you need to sell sooner rather than later, then maybe you need to consider looking beyond the price of the home.  Is it worth paying more mortgage and insurance payments?  Will you be making two mortgage payments if your home doesn’t sell?

Know Your Buyer:

This doesn’t mean you call them up and say hi, this means you need to put yourself in your buyer’s shoes.  If you have a home that requires lots of repairs, then consider the anxiety a buyer may feel bidding on a property that will take time and money.

Stay Quiet:

Don’t shout from the rooftops for all to hear that you are in desperate need to sell your home.  Keep private information private.  If you are facing foreclosure, loss of job, or being transferred, a buyer should not know this information, as they will use it to their advantage.

Keep Emotions Out:

We are all attached to our homes but now is not the time to let your emotions rule the negotiations.  Just because you have sentimental feelings regarding your home, the buyer doesn’t..  Negotiate from their perspective.

Remember, top producing agents negotiate well as they can remove themselves from the emotional aspects.  This is all part of an agents job description as we are trained to present our clients case in the best possible light.  Professional agents know who their client is and will always hold client information confidential from the competition.

 

 

Leave a Reply

Your email address will not be published. Required fields are marked *