Five Negotiation Strategies
A colleague once told me that his favorite part of being a Realtor is the negotiation. We couldn’t be more opposite. I hate negotiating. Hate it with a passion. It is a necessary evil, though, so I still strive to give it my best, to be the voice for my client so their interests are guarded and protected. But it still doesn’t mean I have to like negotiating.
I know both buyers and sellers want the best deal. Buyers want a good price on a home - with repairs made and hopefully a chunk of the closing costs paid. Sellers obviously want top dollar, but any closing costs or repairs they dole out will affect their bottom line. I find these costs are usually the sticking point of a home sale - NOT the price of the house.
So here are my own Top Five Negotiation Strategies for buyers and sellers:
- Put yourself in the shoes of the person facing you at the table. While their problem is not your problem, it COULD be your problem if they say “No.” Try to be reasonable and understand WHY they need X done.
- Do NOT take it personally. Just because a price comes in low doesn’t mean that your house isn’t nice (although sometimes that is the reality). They may be wheeler-dealer investors. Even if the price is ridiculous, you have the option of saying, “YES, NO, or MAYBE.”
- Never let the negotiation end in your lap. Always make a counter-offer, even if the other side says, “Final offer.” Make them to be the one to say “NO” so you’ll be able to sleep at night knowing you gave it your best shot.
- Never be afraid to ask your agent to talk with their broker for insight and advice. This outside-looking-in coolness can state the obvious without heated emotions interfering.
- It’s okay to say YES to an offer or a counter-offer. This is where you should be sensible and reasonable. Do you really want to lose the house you love because the seller won’t pay for a $50 heating element in the stove? Do you really want to hang on to your mortgage payment for another two months because you wouldn’t drop the price by another $1000? You may regret your decision that was probably made in anger or frustration.
I’d love to hear of other negotiation tips from buyers, sellers, or agents!
