Navigating The Negotiations
There is no lie—negotiations are a vital part in getting what you want in the real estate market. Just because a price is listed as x does not mean that it will be the final amount handed over to the seller on the day of closing. However, in order to get a reasonable price for the home, you are going to need a few tips and tricks at the negotiation table. Join us today, as we give you some tips and strategy for negotiations, for both the buyer and the seller!
For Buyers
Knowledge Is Power
As the buyer, the best thing you can have going into negotiations is knowing what the house is worth. No, we do not mean the listing price, but what the value of it will be to you. This may sound like an existential question, but the easiest way to understand this is to get a home inspection. By going through with the inspection, you can limit the amount of surprises that you will encounter on move-in day and beyond, and be able to ask the seller to knock the price down, due to some outstanding issues that may need to be fixed with the home. In addition, if you are feeling a little bit more ambitious, you can have your own appraisal of the home, giving you a numerical value of worth when heading into the room.
Chip Away
One great strategy at the table to employ is the act of chipping away for more and more. What this translates to is asking the seller to make concessions, bit by bit, until you have everything you want. It is much better—and easier to swallow—little incremental items being taken off the price, rather than one large chunk. Start with some of the heavy items first, and then go into the smaller, less-expensive things on your list.
For Sellers
Let Them Talk First
With many negotiations, people follow the “midpoint” rule. One makes the initial offer, the other counter offers, and then the parties split the difference. We are sure many of you have some experience with this, as it is just the natural thing to do. That being said, you can take advantage of this by having the buyer talk first, and then counter offer them, so that you can set where the midpoint is.
Professionalism Counts
In the midst of all the craziness going on, try to be professional about it. Try not to complain at the amount of things that the buyer is asking for, but rather take them all in, and provide your counteroffer in a timely matter. Respect them, and do not think that they are trying to “pull a fast one on you.” Attitude is everything, and if you have a good attitude about it, you’ll get great results.
For Both
Hire an Experienced Agent
Having an experienced agent in your corner during this trying and testing time in the real estate process is the best thing you can do for yourself. An agent overall will be able to fight for what you want, but an experienced agent will know the right way to go about it—with class, professionalism, and skill. Luckily enough, the agents at American Dream Realty of South Jersey are exactly that type, and will do everything they can to get you the best possible deal at closing.
So, what do you say, educated negotiator? Stop on into our office today and see what we can do for you!
