Negotiation Tips ...
Whether you're buying or selling, once
you've found a house you like or a buyer has decided they like your house,
that's when the fun begins. Some sellers are negotiable, some wont' budge an
inch. Some buyers just want the house, some are determined to make the
acceptance of their initial offer the beginning of the negotiation process, not
the end. Either way, negotiation is part of the process so you'd better be
DON'T CONFIDE - You never really know
who your friends are. Different real estate agents have different
approaches to negotiation. Some have a legal obligation to one party to a
transaction and that may require them to reveal your bottom line to the
other side. A simple statement made to an engineer during inspection may
cause big problems later on. Play it close to the vest and it will keep
the negotiations free from outside influences
TRY TO LOWBALL - Depending on the
market and the particular house this can sometimes be the blueprint for
disaster, but some people have used it successfully. If you say you like
the house but "really can't spend this much" or you like it but your
spouse doesn't or you really wanted a pool or a bigger kitchen, etc., it
may get you a price reduction you don't have to ask for.
can lose the house while the negotiations drag on or if your seller
doesn't take you seriously.
GET OR GIVE ICE IN
THE WINTER - If your sellers are firm or your buyer are insisting on a
price reduction you just can't agree to maybe throwing in things a new
homeowner can use and the old homeowner doesn't really want to take with
them will clinch the deal. Don't let visions of a great tag sale cost you
a deal. If you were taking your refrigerator and that's what's killing
your deal, LEAVE IT!. If you're the buyer, is it worth looking for another
house? That pool table in the basement or even the big screen TV (you want
a new one anyway, don't you?) may make everyone agree to proceed to
ENGINEER THE HOUSE -
Make sure you have the house inspected by a professional. For buyers not
doing so can have expensive consequences later. You may be able to use the
results of the inspection to negotiate a reduction in the price, a credit
for the cost of repairs at the time of closing (some sellers don't want to
do the actual work) or the repairs being done by sellers before closing.
As a seller, having the house inspected before putting it up for sale may
allow you to make minor repairs that will pay big dividends when you show
the house and will prepare you for possible negotiations after a potential
. WHAT'S DRIVING THE DEAL? - Whether buying or selling there are generally
unique factors that are unique to each party. Did your buyer already sell
and needs to find a new house quickly? Is your seller in foreclosure? Is
it being sold by an estate that really wants to get the money now? Nasty
divorce? Find out all you can about the other side (while revealing as
little as you can about yourself) and use the information to help guide
DEMONIZE THE OTHER SIDE - Each side to the negotiation has a legitimate
point of view. The seller is allowed to get the most for their house and
the buyer is entitled to try for the best price possible. Each may well
have their own closing dates, holdover periods, repair list and overall
assessment of the deal. Despite the prevailing belief of brokers that the
people shouldn't be allowed to talk sometimes five minutes of a face to
face talk can save weeks of third-party negotiations.
PREPARE, PREPARE, PREPARE - Nothing frustrates negotiation faster that one
side making a statement that the other side knows to be untrue. Maintain
your credibility and provide backup for the positions you take.
- Determine exactly what you want
- Research to find out what constitutes a fair
price for what you want to buy/sell
- Figure out what's most important to you and to
GLOAT - The most successful negotiations are the ones where each side
believes they have won. If you win a major point in your priorities, enjoy
the victory away from public view. There may be other issues to be
discussed and a person who believes they have lost a negotiation will try
to catch up, soon!
BE POWERLESS- - Nothing empowers better than claiming
to have no power. If you want to improve on a tentative agreement, then
advise that you are OK with it but that someone else (spouse, in-laws,
parents, accountant) to OK the deal. May give you room for one more tweak!
NEVER FIRST OFFER BEST OFFER - No one ever believes an
asking price or first offer are the best deal possible. Always leave a
little room to sweeten the deal so the other side can feel the
satisfaction of winning something.
Remember: If the buyer wants to buy and the seller wants to sell there
is always a deal to be made!
666 Old Country Road.
Garden City, NY