Negotiating is a skill. It requires the ability to read people, and smart strategies. Negotiating comes naturally to some people, but even they have to work at it. If you don’t negotiate properly during a real estate transaction, you might not get the better side of the deal, and end up on the losing side. Below are some of the mistakes that buyers make when they’re at the negotiating table.
Not putting themselves in the sellers shoes. Not all sellers are created equal. This is because not each person is created equal. You must look at a seller as a person, not a ‘seller.’ If you do this, you’ll be able to see how you can negotiate with them. One of the biggest things you should look at is how long the home has been on the market. You must see how desperate the seller is to sell, even if they aren’t saying or showing it. And if the seller isn’t desperate to sell, you need to find other aspects to them that will work to your advantage. The most important thing in negotiation, is to make sure you aren’t overpaying for a property.
Not doing research You absolutely must do your homework. You need to see how long the home has been listed on the MLS, how ‘hot’ the market is at the moment, and the comps. Your realtor should already know all of this information; if they do, ask them so that you can stay up to date. If they don’t know this information, you need another realtor. However, you should be doing research along with your realtor. Two minds are better than one. No one ever lost anything by having too much information.
Not knowing when to be quiet The general rule is to talk as little as possible. The one that talks most, loses. For example, if you want to pay all-cash for the house, the sellers don’t need to know this. If they know, they will keep firm on the asking price, as they know you can more than well afford it.
Placing all your dreams into that one home. You must take emotion out of it. Buying a home is a real estate transaction. The sooner you start looking at it that way, the better off you’ll be mentally during the house-hunting process. You must be willing to walk. The only way to be able to do this is by having alternative options available that you also like, in case this one doesn’t work out.
Communicating every form, except for in person. You must speak to the seller in person. This is the only way to negotiate; you can’t tell their facial expressions or body language on the phone. In person, for example, if you ask them how long their home as been on the market, they’re likely to talk too much, which will give you more information. People tend to reveal more in person than on the phone, because confrontation tends to be uncomfortable and people like to use uncomfortable situations by filling silences by revealing way too much about themselves or the issue at hand.
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