Negotiation Tips for Buyers
Negotiation Tips for the Buyer: How to Negotiate the Real Estate Contract
- Avoid emotional decision making: When you are Buying Your Home it can be hard to detach yourself from the process. After all, you are excited to start your life in the property, give it your personal touches, and maybe even raised your family there. Now, you need to look at this residence as a business prospect and try not to take any comment personally.
- Trust me, your REALTOR or Real Estate Agent : Prospective sellers typically have an agent representing their interests and you should have an agent who is representing yours. If you have chosen the right agent, you should feel comfortable letting him/her take the lead in negotiations to get the best possible outcome for you. Your REALTOR or Real Estate Agent will know current market conditions better than you and can help negotiate with the market in mind.
- Receive a counteroffer: Many sellers find a lowball ( opinion of value vs another opinion) offers insulting and may ignore them, but some will counter; you are better served to acknowledging the plus and minuses of the counter offer before beginning the negotiating process. After all, the seller is at least interested in moving forward; and you must now consider why you offered what you did.
- Fix your focus: It is easy for sellers and buyers to fixate on the offer price, but in reality what matters more is your final comfort in the completed transaction with an agreeable settlement date. You can negotiate about a price of the home, but remember that it’s equally important to make sure the price is within the comparative market value for the condition. If you are having trouble getting to an agreement on one issue, it’s possible that a concession on another topic will help cement the deal.
- Determine who has the advantage: You and your REALTOR can evaluate local market conditions to see whether buyers or sellers generally have more power, but you both can also make this determination based on what you learn about an individual home. If you are a desperate buyer, you may need to be more lenient in negotiations; but if your seller needs to move faster and there are many homes available for sale, you could have more power.
- Move quickly: While it may be tempting to wait and see what else is out there, REALTORS and Real Estate agents often note that the first offer is often the best one and sometimes not the only one. If the counter-offer is close to what you had hoped for, keep the momentum going and make a concession.