In a major financial transaction such as the sale or purchase of a home, it is critical to understand and anticipate the key negotiation tactics that you may encounter, whether you are the seller of the buyer. The goal of all negoation should be a fair outcome for both parties. It is the job of your real estate professional and the other party’s agent to negotiate the best deal for their clients. It is helpful, however, to have some insight into several classic strategies , such as:
The nonstop negotiator: This is the person, usually the buyer, who never quits nibbling… looking to get more out of the deal, possibly through the counteroffers and even to use the home inspection contingency clause to obtain further concessions from the seller.
The “higher authority” negotiator. This tactic is used by both buyers and sellers…. you’ll hear, “I just want to run this by my attorney or CPA or wife or Aunt Pat”. It’s a stalling for time technique that needs to have time limits placed on it. If it is truly due to a missing principal to the transaction, place the contingency based on a time limit.
The informal auction negotiation tactic. If you become involved in a multiple purchase offer situation, you are in an informal auction negotiation. This usually occurs in a sellers’ market; however, we are seeing it now in the foreclosure market with several offers submitted to banks for approval. In the sellers’ market, there is the hope to drive the ultimate sales price above the listing price. In the foreclosure market, many times, the listing price is acceptable; however, there are many buyers looking for a “deal”.
It takes wits, savvy and experience to get the best deal… of course, the negotiation skills of a qualified real estate agent are indispensable. Would I say anything but that…. being a real estate agent?
