I Guarantee That These Buyers Paid A Premium

Category: Finance, Real Estate.

An important part of our job as Realtors is to help our clients negotiate for the best deal on a house. Here are some strategies to help you guide your clients through the negotiation process.

Your confidence and professionalism in this area will make your service memorable to your clients. Constantly re- establish trust. Buyers and sellers know that the other party has interests that are in conflict with theirs. Establishing trust between the parties is the most important strategy in any negotiation. They begin with a certain amount of wariness of each other. Show them that you and your clients will be reasonable to work with. It is valuable to establish rapport quickly.

Here are some ways for your clients to establish common ground: Communicate that they have a common hobby, the same type of job, moved here from the same area, went to the same college, have similar children's needs, or other relatedness. If your buyer works for a well- known company, this may increase the seller's trust. Present evidence that your clients are qualified to buy the property. Never delay your counteroffers. Communicate that the buyer appreciates the home. Show respect for the seller's time. Begin the negotiation by establishing rapport.

I have noticed that buyers are often reluctant to show that they like the house. Then continue to reinforce it throughout the closing process. They believe that an aura of disinterest will help their negotiation. During the negotiation the seller had multiple offers to choose from. I recall a transaction in which the buyers met the seller, and expressed how much they liked the house. Their offer was selected. Also, they were real people to the seller, while the other offers were just paper.

The buyers' encounter with the seller, and openness about how they felt, gave them an edge. The seller trusted them to close the deal. While trust is the single most important factor in a negotiation, ego is the most destructive. Don' t get negative feelings involved. Many times I have seen buyers include notes with their offers. I guarantee that these buyers paid a premium. They point out faults and deficiencies, and explain why the home is not worth the price.

The point is, never run down the sellers' home. And negative feelings are an unnecessary hurdle to have to overcome. This will bring their feelings to the table. If you have the opportunity, compliment the sellers' house, decorating and gardens. During the negotiation, anchor your offer price to market data. Don' t forget that their children are always above average, and their pets are practically human.

Play on the Same Team. A united front is a strong negotiating position. It is important that you stay on the same team as your clients. This may not be the way things really are. You may not approve of some of the terms of the offer. The wife may love the house, but the husband wants to negotiate the price.

If you reveal a break in your ranks, the sellers will consider your position weaker. A healthy skepticism is a good thing in negotiation. Keep a Grain of Salt. Not everything you are told is true. Does the 1% bonus for contract this week mean that you have to rush your offer in? How many times have you heard that the contract has to be in this quarter, or the price is going up?

Is the price really firm? The seller may want close quickly and for full price, on the other, but hand, the seller may want to close, period. Proposals such as these show you what is important to the seller. I can think of many times when I thought the buyer's offer would never work, they got their, and yet terms. A big part of negotiation is subtle. Understand Special Needs.

Little things make a big difference. A misperception of the required tone can lead to a decline in trust. Sometimes good deals go off track because of a difference in the style or personality of the parties. Some examples: Slower Pace- The sellers were a couple in their 90's. The buyers took extra time to sit down and talk, and formed a strong bond. Since they did not leave the house, the buyers met them several times.

Holy Ground- The sellers had a small grave for their dog on the property, which they were very sensitive about. For the Birds- The sellers had numerous bird feeders on the property. The buyers realized this, and sent word that they would leave it in place. The buyers keyed in on this, and offered to continue feeding the birds. In order to preserve the buyer's trust, it was necessary to double check everything, and watch deadlines, handle paperwork. Get a Grip- The sellers' agent tended to give wrong information, did not handle details well, and was untrustworthy.

Keep private things private. They may have just sold their house, and need to act fast. Buyers may have some issues that should be kept private. They may need to start kids in school. They may have an interest rate that is about to expire. They may be in the middle of a divorce. Not one of these pieces of information will get them a better deal on a house.

Your buyers should be perceived as folks who are well qualified, who truly appreciate this home, and who can be trusted to close. In fact, they all indicate that they are under pressure. Get good information. How are other actives and recent sales priced? Here are some questions to ask before you and your clients compose an offer: How is the market in general? How long has the home been on the market? Did the house sell recently?

Have there been price changes? What was the price? Would a pre or post lease be desirable? Is there a time deadline that must be met? What is the appraisal district value? The HOA dues?

The taxes? Is a disclosure available? A survey? A property inspection? Are there any offers expected, or on the table now? Other terms, close date, such as financing, repairs, or possession date may be just as important.

Price is just one consideration in the negotiation for a home. Negotiating for a house requires skill in giving and taking information, and in communicating to the seller that your clients are the best buyers for their property.