Negotiating to "YES"
By Mark & Annmarie Lenson
People Like Us…….People Trust Us
Put Our Experience On Your Side……..We Sold Almost 800 Homes
Negotiating a purchase and sale agreement is perhaps the trickiest aspect of any real estate transaction. Most home buyers and home sellers want to get the better of the other side. The Seller not only wants a higher price, but no matter what it winds up being, they always think they could have gotten more. The same for the Buyer, only in reverse.
The fact of the matter is, if one side tries to take advantage or be unfair in a fair market value price, then there is no agreement or sale. This does not mean you can’t get a really good deal. It is a matter of how good you are at negotiating .
You must strive for a win-win agreement maximizing your preference. It is the “...maximizing your preference.” part where you really come out ahead; getting what you want while letting the other side know that they got what they wanted. It is all in how you negotiate.
Successful negotiating is more than a matter of luck or natural talent. It also encompasses the learned ability to use certain skills and techniques to bring about those coveted win-win results. Here are several tips and suggestions to turn negotiation into an agreement.
Start with a fair price and a fair offer.
There's no question that significantly overpricing your home will turn off potential buyers. Likewise, making an offer that's far lower than the asking price is practically guaranteed to alienate the sellers. Asking and offering prices should be based on recent sales prices of comparable homes. Negotiate in the world of reality, not dreams.
Know When To Ease Up.
Respecting what's most important to the person on the other side of the negotiating table can help you avoid pushing too hard on hot or sensitive issues. For example, a seller who won't budge on the sales price, might be willing to pay more of the transaction costs or make more repairs to the home, while a buyer with an urgent move-in date might be willing to pay a higher portion of the transaction costs or forgo some repairs.
Be prepared to compromise.
Win-win doesn't mean both the buyer and the seller will get everything they want. It means both sides will win some and give some. Rather than approaching negotiations from an adversarial winner-take-all perspective, focus on your top priorities and don't let your emotions overrule your better judgment.
Can't decide who will pay the recording fee? Can't agree on a close-of-escrow date? Arguing over cosmetic repairs? Splitting the difference is a time-honored and often successful negotiation strategy. Pay half the fee. Count off half the days. Fix half the repairs.
Leave it aside.
Politicians and corporate executives are famous for their "for future discussion" agreements. If you have a major sticking point that's not material to the overall contract (e.g. the purchase of furniture or fixtures) then finish the main agreement or amendment. NEVER leave negotiations to one item and one item alone. Always have several so you can play off one another in a give and take situation. This technique allows both sides to recognize and solidify basic areas of agreement and then move ahead toward a fair compromise on other terms and conditions.
Note:
Negotiating directly with the other party for yourself is difficult due to the emotions, subjectivity, pride, and other experiences you generally should not share with the other party. Here alone, in just the negotiating aspect of a purchase and sale contract, a good realtor can save their customer a great deal of money.
