Top Real Estate Agent Negotiation Tips For Home Buyers And SellersSeptember 13, 2019
When it comes to real estate, sales and negotiation play a large role because unless a property is being transferred to a family member, there will be a sales transaction. With that sales transaction comes a group of people each with a respective job to make sure the sales is done on time, legally, and recorded. At some point in the sales process there will be a round of negotiations that will include the buyer(s) and seller(s) of the property. For that reason, in this article we will be discussing the topic of the real estate agent negotiation tips for home buyers and sellers.
Top Real Estate Agent Negotiation Tips For Home Buyers And Sellers
In the negotiation process, both parties want to have their way. For the buyer this means getting the property for the least amount of money possible. For the seller this means getting the highest amount possible. The best negotiations occur when both parties get what they want, but we believe the following seven tips pertain to both buyers and sellers and we will discuss them briefly from both sides.
1) Understand the Market Thoroughly: If you want to be prepared going into a negotiation or any real estate discussion, you need to understand the market. It is one thing to know you want to buy a home, but it’s a totally different thing to know WHERE you want to buy, and WHY you want to buy there. This gives you a great upper hand when negotiating with a seller because they may not even know how much properties in their neighborhood are actually worth. On the other hand, if you’re the seller, you can have the upper hand by educating the buyer who may have given you a terrible low offer. Knowing the market will allow both parties to understand what the fair market value is, and to be able to negotiate based on that.
2) Make Your Asking and Offers Realistic: Going back to the previous tip, if both the buyer and seller know what the fair market value is, then the offers should be realistic. If these are understood, then there’s room for both parties to get to the strike price that they are looking for, without being completely irrational and unrealistic. I once had a buyer come to me with an offer that was $100,000 less than my asking price. When I countered, he only raised it by $5,000 which was totally unrealistic, and you can guess what happened after that.
3) Have an Open Mind During Negotiations: Negotiations are an invitation for the opposite party to open his, her, or their minds. It lets the other party know, “we want to do business with you, but not at the price you offer or are asking for.” During negotiations you can also find out that maybe it isn’t actually price that is motivating the seller, but something else. If you have an open mind, you will pick up on certain stress factors that may not be reflected by numbers alone, visit the top real estate agents.
4) Do Your Own Inspection: Having your own inspection done on a property is a huge negotiation tool because you will know exactly what the property needs in repairs or upgrades. Having this in the back of your mind will allow you to calculate all of the numbers you need in order to follow through with your exit strategy. You can’t simply go on what the seller says it needs. Instead, do your own inspection, even if you’re the seller, so you can show the buyer that you’ve done your homework as well and thus came to a fair asking price.
5) Pay or Offer to Pay The Closing Costs: Offering to pay the closing costs is a gift that will disarm the other party. Everyone likes free stuff, and paying closing costs will give you a bit more wiggle room since you’ve already offered something prior to the negotiation. The reason free samples and demonstrations are so powerful is because they subconsciously let you know that you’ve taken something, and must give something else in return. Offering to pay, or paying for the closing costs will do the same to the mind of the opposite negotiating party.
6) Be Careful When Involved in Bidding: If you are setting out to be in a bidding war, or it simply happens out of nowhere, be careful. Buyers oftentimes ask everyone to give their highest and best offer in order to get the most amount of money. If this happens, you are hoping that your offer is the highest and best. If you are the seller, then you must be careful when selecting the highest offer because the buyer may not be able to close. It may be a better option to choose someone with a solid track record who has been proved to follow through, even though their offer was not the highest, for more information visit https://nestfindrrealestateagents.home.blog/.
7) Reject, but Be Prudent About It: Rejecting offers is a normal aspect of negotiating. If the offer doesn’t meet your expectations or the buyer is giving you a very low offer, you can reject it and move on to someone that is more serious. Be prudent in letting the buyer know that they can submit a different offer, and counter with what you want from the negotiation. Make sure not to simply reject offers for the fun of it, or because you think you will continue to receive high offers. One week you may have many offers, and you reject each one, only to find out that those were the only ones that month.
In conclusion, in this article we discussed seven different negotiation tips for buying and selling homes. These are all great tools to have because they make you knowledgeable and able to discern what the other party may be trying to do. The more information you have on the market, the property, and the other party, the better you will be at getting what you want.