NEGOTIATE LIKE A PROFESSIONAL –
Bonnie Jessee
Either working alone or working with your Realtor, negotiating can make you want to ‘get away’. The seller’s may feel the same way, as might your Realtor!
However, in the goal of a successful purchase and closing, we can learn from the problems encountered during our first situation and negotiate a deal that leads to a satisfactory conclusion for all involved. Good negotiating is certainly not about ‘beating’ up the other side; rather it is about knowing and understanding the seller’s motivations and your own motivations, and concluding a deal that satisfies you both.
Beginner’s potential mistakes and how to avoid them.
Price is the only concern
Terms can matter more than pricing! One might negotiate quite a bit of value into a contract besides the purchase price, so think about the best closing date, determining who would be motivated to pay closing costs, any personal items you might like the seller to leave behind, and options or upgrades for a newly constructed home – as well as any other thoughts on timing or additional terms.
Time is of the essence
Have your financing in order from the start of your house-hunting, and be ready to write immediately on the home you want. Make a firm, direct and clean offer to a motivated seller, including in your offer a time limit for a response, and you might get precisely the terms you asked for.
The immediate response
Yes, you want to move swiftly, however, never respond verbally to an offer or counter offer. Ask for it in writing, and respond in writing.
Lowball offers ‘just to see’ where the seller is
If you want a seller to reduce your purchase price, have factual reasons besides the amount of money in your bank account. For example, the market is down, the roof and carpeting needs replacement, or perhaps other similar homes in the neighborhood sold for substantially less than the current asking price on your choice. Increase your negotiation position by being prepared to justify your request.
Making the assumption the price is as asked
You might have heard, for example, that there’s no price negotiation room on pricing for new construction. Or you might think that there’s no way the seller would leave behind that fabulous grand piano. Not always so! Ask for what you want and be willing to be flexible on other requests.
Making it “personal”
The seller reacts to your offer by getting frustrated and yelling, or oozing condescension and calling you honey or; pretending he doesn’t understand it "Did you really mean this number right here? This must be a mistake."
Some experienced negotiators will try to set you off guard on purpose; others may just be rude. But stay calm and be consistently direct. Ask the seller to be specific about any terms he or she might not be comfortable with and to make sure you understand exactly what he means, ask questions! If the seller appears to be totally uncooperative, be prepared to walk away from that particular house. Your philosophy so always be ~ This is business, and there are other houses from which to choose.
Waking, sleeping and totally focusing your being on this purchase
Of course you are working hard at negotiations and you should keep your cell phone on. However, remember to take care of your physical and emotional self as well. Staying calm, under control and consistent will assist to make this a smoother transaction and a pleasant experience for all.
