Turning negotiations into agreements
Negotiating a purchase agreement is perhaps the trickiest aspect of any real estate transaction. Most home buyers and home sellers want to arrive at a win-win agreement, but that’s not to say either side would regret getting a bigger “win” than the other.
The best approach is to have a Realtor represent your interests. Successful negotiating is more than a matter of luck or natural talent, and Realtors are skilled experts at negotiating. They use certain skills and techniques to bring about those coveted win-win results. Here are six tips and suggestions to turn a negotiation into an agreement:
1. 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 certain to alienate the seller and impede successful negotiations. Asking and offering prices should be based on recent sales prices of comparable homes.
2. Respect the other side’s priorities. Knowing 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 well advised to make some possibly needed repairs to the home. On the other hand, a buyer with an urgent move-in date might be willing to be a little more flexible on price and other terms.
3. 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.
4. Meet in the middle. Splitting the difference is a time-honored and often successful negotiation strategy. Also, remember to look at the big picture and not dwell on the small things.
5. 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), finish the main agreement, then resolve the other difficulties in a side agreement or amendment. This technique allows both sides to recognize and solidify basic areas of agreement, then
move ahead toward a fair compromise on other terms and conditions. Summarizing the points of agreement in writing is another helpful strategy.
6. Ask for advice. Successful Realtors are experienced negotiators.
They’ve seen what works and what doesn’t in countless real estate transactions, and they’ve established a track record of bringing buyers and sellers together.
Now is a great time to purchase a home.
Contact a Realtor about negotiating strategies, win-win compromises and creative alternatives. Realtors are there to help.