January 17, 2014
How to Negotiate a Real Estate Transaction, and Win
It doesn’t matter if you are buying or selling a home, there is one thing on your mind: getting the best deal possible.
When selling, you want to accept an offer as close to your asking price as possible. When buying, you want to negotiate a price as far below the asking price as possible.
You can probably see the dilemma by now. While you have your best interest in mind, the other party, either the buyer or seller, is working against you. For this reason, the negotiation process can really heat up.
Here are three tips for putting yourself in position to “win” as you negotiate your next real estate transaction:
1. Be reasonable. There is nothing worse than negotiating with somebody who is unreasonable. Do you really want to be seen as this type of person?
Getting the best possible deal is something everybody wants to do. If you take this too far, however, you will find the other party immediately walking away from the negotiating table.
Take this situation for example: you are interested in buying a home that has an asking price of $300,000. It would be a dream come true to purchase it for $250,000, right? The problem with this is that making such a low offer can be insulting and unreasonable. Not only does this reflect poorly on you, but it will insult the seller.
Just be reasonable!
2. Hire a real estate agent with many years of experience. An agent who has been in the industry for many years will be able to assist you during the negotiation process. From steering you in the right direction to helping you avoid common errors, it is much easier to achieve success when you have an experienced professional working on your behalf.
When it comes down to it, you will call the final shots as the buyer or seller. That being said, take what your agent tells you to heart. This person has your best interest in mind, and knows a thing or two about negotiating a killer deal.
If you aren’t going to listen to your agent what is the point in hiring him or her in the first place?
3. Be willing to walk away. This tip is thrown around time and time again by those who are experienced negotiators. However, some people overlook the importance for one reason or the next.
If you are not willing to walk away from a deal you cannot expect to come out on top. There is always another buyer for your home. There is always another home that you can purchase.
Even though you may feel that this is your one shot to make a deal happen, you cannot be so desperate that you will do whatever it takes to close the transaction. Sometimes, all it takes is the willingness to walk away to really get the deal you have been looking for.
Is your home on the market? Are you searching for your dream property? If you answered yes to either of these questions, you know you will be negotiating with a buyer or seller at some point in the near future.
Let the advice above guide you down the winning path. There is nothing better than looking back at your deal, knowing that you got exactly what you wanted.