Negotiation is a subtle art in real estate, but skilled negotiators can usually find some common ground that satisfies all parties. On the other hand, using the wrong negotiation tactics can sink a deal pretty quickly. Here are some negotiation tactics buyers (and real estate professionals) should avoid:
1. Lowball offers (in some cases): Going far below market value when you make an offer damages your credibility as a buyer and can be insulting to the seller. The seller has a range in mind that they’ll accept, and if you’re not even approaching the low end of that range, they won’t even consider the offer. I do a lot of low ball offers, but they are on homes that need repair and are not selling for retail price.
2.Incremental negotiations: Don’t continue to go back to the seller with small increases in your offer ($1,000 or less). The constant back-and-forth can grow tiresome and lead the seller to consider other opportunities. This sometimes allows other offers to come in also if it is a great deal already.
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3.Take it or leave it”: Try not to draw a line in the sand with your initial offer. The seller can get defensive and consider other offers if you immediately show that you’re unwilling to budge. Even if it’s true, don’t make a show of it. The key is how bad you want the home and the emotion of both buyers and seller.
4. Nitpicking after inspection: Obviously if inspection reveals a major issue, it should be factored into the final sale price. But insisting on a lower price for every minor repair can put negotiations in a stalemate. It is a good idea to get an an inspection before you sell a home. Even if it needs work, inspections hold a lot of weight with buyers and will probably get you more money for the home.
5. Asking for more, more, more: Some buyers will request that the sellers throw in add-ons like
furniture or appliances that weren’t included in the listing. Try to avoid giving the seller a reason to build up resentment and think that you’re being greedy. You can also pay for for items you might like in the home.
I had a client that liked the living room furniture in a home they where purchasing. The seller would not budge on selling it for what the buyer was willing to pay. I threw in $800 of my commission and got the deal done.
Negotiating is a tool that needs experience behind it, 1000+ deals and counting.. Call me I'm Brett 216-703-5740 EXP Realty Ohio and 602-363-6551 EXP Realty Arizona.
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Thank you