Today’s topic covers home sale negotiations, some common scenarios and tips for your transaction.
As Realtors, we would like you to be as enthusiastic and excited at the closing table as you were on the original consultation, however, there are many steps between the two. The types of negotiating styles of the various parties can be effective or an obstacle to overcome.
Unless a home is being sold as is, there are two negotiations on a real estate purchase.
- The first is the initial offer and terms such as closing date, earnest money, seller paid closing costs, etc.
- The second is the repair request negotiations based on a qualified inspector’s report.
The first negotiation oftentimes has influence on the latter. Too much back and forth on the initial negotiation of price and terms results in (what I like to call) “negotiation fatigue”. This emotional drain sometimes carries over into the inspection related repair negotiations that will occur less than two weeks later.
Know what market you are in. In a strong seller’s market, the seller might have a backup offer or 5 others they passed over to sign yours. I’m not saying take something that is unacceptable to you, but buyers need to cognizant that they have competition.
Most times, we see people who want to feel respected and treated fairly and they do likewise. Other times, and it is rare, we encounter people that not only want to win, they just as passionately want others to lose. An unfortunate mindset to be sure. If you enter into a real estate transaction thinking that you will be getting everything you want, you will be in for a difficult road ahead and you may not make it to the finish line. This mindset views the other party as an adversary. To what degree depends upon the individual. We aren’t saying that all transactions are hearts and flowers, but if you believe you must prevail at every turn, you will be disappointed in the outcome.
Tips for negotiating in a real estate purchases and sales:
- No home is perfect….not even a new one. Show some flexibility and be realistic.
- Be cognizant of what type of market you are in. We are in a strong sellers market and buyers cannot expect to submit pages of minimal repair requests. The buyer’s agent is instrumental on counseling their clients in this regard.
- Be clear on what items are deal breakers for you. Prioritize your wants and needs.
- Just because we are in a seller’s market does not mean the seller has to do nothing regarding repairs. Unless the property is sold as is, the buyer is expecting some reasonable consideration on their repair requests.
In the end, you make the decisions on what will and will not work regarding negotiations. Your real estate agent, however, has a fiduciary responsibility to you….the client. They are working for you and their experience in the market, knowledge of property condition and area pricing will provide you with a fact-based negotiating strategy. Utilize their expertise and counsel.
Thanks for taking the time to read the post. Reach out to us with anything you need.
Terry Jackson | Realtor at Domicile One Realty | www.DomicileOne.com | 913-488-5623