Buying or selling a home is not an event it’s a process, we like to say. It’s a process that’s full of negotiations…
- negotiating an offer, with the hope of a contract both parties find a win/win
- negotiating on the response to a home inspection
- negotiating on the results of an appraisal that didn’t meet one or the other party’s expectations
- negotiating on any other contingencies
The best negotiations happen when both buyers and sellers don’t let their emotions rule. It’s not always easy in a process that stirs up emotions and puts people in a stressful state of mind, but it’s the best way to guarantee the best possible outcome. Instead of letting the situation become adversarial, it’s better to aim for a win-win, when everyone is satisfied with what is most important to them.
Negotiating Tips for Home Sellers:
- Don’t take offers personally
Selling your home can be emotional. But it’s simply a business transaction, and you should treat it that way. If your agent tells you a buyer complained that your kitchen is outdated, to justify their lowball offer, don’t be offended. Think of it, rather, as sign the buyer is interested and understand that those comments are a negotiating tactic. Negotiate in kind.
- Be creative
If you’ve received an unacceptable offer through your agent, ask questions to determine what’s most important to the buyer and see if you can meet that need. You may learn the buyer has to move quickly. That may allow you to stand firm on price but offer to close quickly. The key to successfully negotiating the sale is to remain flexible.
- Set baselines
Decide in advance what terms are most important to you. For instance, if price is most important, you may need to be flexible on your closing date, or other items. Or if you want certainty that the transaction won’t fall apart because the buyer can’t get a mortgage, ask that a buyer be prequalified.
Negotiating Tips for Buyers
- Keep Sellers in Mind
You can never underestimate the stress that can affect a seller’s state of mind. There are many variables that are out of a seller’s control when it comes to selling their home…and that alone can be unnerving. Keeping a calm and respectful demeanor can go a long way in the negotiations.
- Don’t Insult the Seller with A Lowball Offer
Just don’t do it. Read more here. You will very likely end up with no response at all…then there will be no negotiation.
- Use a Skilled Buyer’s Agent
Your buyer’s agent should be a trusted adviser. Use your agent and take advantage of their market analysis and their negotiating expertise. Remember, as local real estate professionals, we are steeped in the market every day. Negotiating is what we do…365/7.
Chris Highland – The Highland Group – 301-401-5119