How NOT To Negotiate…
Every real estate agent claims to have their own personal, magical way they negotiate to get the best deal.
The problem with this is that every transaction requires a different approach.
Every. Single. One.
Think of the myriad of factors that can (and will) change from deal to deal.
Every seller is different, every home is different, every buyer is different, every agent is different, and every market is different.
Yet…
There are a few common pitfalls that I’ve seen happen time and time again in negotiations.
Some were brought on by the clients, some by the agents themselves.
Here are 4 things NOT to do during a real estate negotiation:
1. The Win/Lose Mentality Without sounding too PollyAnna, everyone can (and should) win in a real estate transaction.
If you (or your agent) go in to negotiations thinking they need to destroy the other party --- take a xanax, and recalibrate.
A competitive edge is great, but if everyone feels like they are having their needs met, the escrow has a much higher chance of closing.
If someone feels cheated or ripped off — on either side of the transaction — there is a very high likelihood of that party pulling the plug on the deal.
2. Ultimatums They almost never work. And when they do, the deal usually falls out of escrow. Ultimatums, on either side of the transaction, put the other party on the defensive.
And when the other party is backed into a corner, a deal becomes a headache for everyone involved. Instead of a smooth escrow, you have a series of escalating “get-backs”, and usually someone still ends up bailing on escrow.
The solution?
Consult with your agent about the proper escalation if one side isn’t performing. But if both verbal and written warnings are being ignored, then the transaction is most likely doomed.
Save yourself the headache, and walk away. There’s always another property, or another buyer.
3. Getting Too Attached This goes hand-in-hand with ultimatums. Yes, you should love the home your selling and/or the home you want to purchase. And yes, you should want the deal to go through. And want it badly.
However, no home is worth losing your shirt over. There will always be another. (And maybe one even better!)
I’ve seen sellers wait and wait and wait for a buyer to offer what is an unrealistic price, only to have to settle months down the road for a low-ball offer since they turned all the solid (but not record breaking) offers down in the beginning.
On the flip side, I’ve seen buyers get so caught up on finding “the one” that they pay waaaaaay over market value and will have a hard time making money on the property in the long run.
4. Being Just About $$$ Yes, the buyer always wants to save as much as possible, while the seller always wants to obtain the largest offer.
However, this can be shortsighted. There are endless terms and conditions that can also sweeten the deal --- on either side of the transaction.
Sometimes it’s worth taking a slightly lower offer as a seller, or offering a bit more as a buyer, if other conditions are met. Closing costs, repair credits, leasebacks, escrow length, buyer strength, delivering a property vacant, are all examples of other deal points that can be used in conjunction with price to obtain the best deal.
Each deal is different, so each deal needs a unique approach. Don’t get overly caught up in the number.
Best, R
