Negotiations is one of the main reasons buyers work with professional real estate representatives. Realtors typically have no attachment to your home. Most importantly, they usually know the market trends. They know if you want to sell your house there may be a window to get the best price.
Nevertheless, buyers (yes that includes you) sometimes sabotage the process by making negotiating mistakes like the following:
Put all your eggs in one basket.
When you need to buy a home because you have no other options, you’re in a disadvantaged position – a desperate one. This is a terrible place to be at while sitting at the negotiating table. Having in mind alternatives you’d be just as happy with makes it easier to walk away should things not work out with this particular property. Besides, it never hurts for the sellers to know you have options! Keep emotions out of it and keep an open mind. Even if this is your dream house, if the terms are not acceptable or appropriate, know you will have to walk away. We cannot stress this enough – do not get “the feels” for a home before it is yours. And know that even if this is your dream home, there may be another home out there equally as great or better.
Showing your hand.
You may be prepared to pay in cash, under a deadline to move, have just received a promotion or just head-over-heels for this home…this information is safest with your realtor and should stay there. Lest it become a leverage against you. Keep all life secrets to yourself and home information to yourself; unless of course you are legally obligated to disclose something. If you have no “obligation” to share – keep your secrets to yourself.
Wanting to win.
Adopting an adversarial, rather than collaborative, attitude toward the seller is a great way to kill negotiations before they commence. Likewise, a desire to beat the other buyer(s) in a multiple-offer scenario is a great way to end up paying more for a property than you planned for. Head into negotiations looking for a win win situation. Remember – you have a budget for reason. You hired a professional for a reason. You make money on the buy not the sell, keep the end goal in mind.
Listing too many conditions.
An offer with a laundry list of conditions attached is one that’s less appealing to the seller, who won’t likely want to deal with you at all (whether because they don’t want to wait or are worried you end up having to walk away), let alone be willing to extend you much goodwill on other terms like price. Keep it simple. Do not settle for terms that are unrealistic but keep in mind that you may end up hiring a painting company, or replacing the carpet on your own. If those are not items you can deal with, the house is not for you.
As always, buying and selling a home can be an emotional rollercoaster. We are here to help you as best as we can.
If you have questions or concerns, do not hesitate to contact Gregg Bamford or Ryan Bamford.
