Date Posted: 2012-06-27 03:09:59
Site Posted: Myproperty.ph
Getting a seller to take your offer takes more than just offering what they want. In a situation where the seller is a tough cookie, or if there are more than one buyers vying for one property, you have to know how to negotiate well to get what you want. Here are some tips on how to approach a real estate negotiation so that it comes out in your favor.
1. Keep your excitement down. Part of effective negotiation is maintaining a poker face, no matter how excited you are about the house. Being too enthusiastic during an open house can cause you to make hasty decisions that you’ll regret later. Also, letting your delight show will lead the seller to believe that you’ll agree to whatever he asks.
2. Begin with a just offer. This should go without saying, but there are still some people who think that they can get away with jumping in with a lowball offer. While this can work in rare circumstances, you have to learn to pick your battles. If the seller is in a good place (seller’s market, excellent property value, etc.), make sure that your offer won’t turn him off. Do a comparative analysis of the price properties similar to the seller’s are being sold for, and base your offer on that.
3. Avoid being combative. Threats and bully offers won’t win any person over, and they certainly won’t win you a house for sale. Believe it or not, some sellers will turn down a reasonable offer if the buyer has a rotten personality. Remember to start with a cool head, keep your responses civil and listen to the seller’s argument. Another note: you may think that telling the seller you have another seller on speed-dial will scare them into saying ‘yes’, but it probably won’t, especially if he’s entertaining multiple offers.
4. Be open to a compromise. No matter how you look at it, there is no way that both a buyer and a seller can get all they want. In an ideal win-win situation, both parties will at least walk away with what they came for in the first place: a good sale for the seller, a new house for the buyer. If you want a lower price but the seller won’t budge, try offering to cover half the closing costs if the seller will take care of the necessary repairs. If you can’t agree on a closing date, pick a date that falls in between your proposed dates.
5. Understand the seller. Seeing where the seller is coming from will help you gain their trust, which is very important. You may not have to reveal your deepest, darkest secrets to each other, but you do have to know the priorities of the seller so you won’t overstep your boundaries as a buyer. Some sellers will feel offended by a lowball offer because of the memories that they have created in their home. There have been cases, too, that a seller chose a buyer not because of the offer but for personal reasons like having the same religion or being reminded of himself years ago as a young buyer.
Jillian Cariola, Writer
(cover image by Mat Hayward)
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