Negotiation is an art in real estate and skilled negotiators can usually find some common ground that satisfies all parties. On the other hand, using the wrong negotiation tactics can sink a deal pretty quickly. Here are some negotiation tactics buyers and real estate professionals should avoid:
- Lowball offers: Going far below market value when you make an offer damages your credibility as a buyer and can be insulting to the seller. The seller has a range in mind that they’ll accept, and if you’re not even approaching the low end of that range, they won’t even consider the offer. Find out what local values are and list to sale ratios to make an informed offer the first time.
- Incremental back & forth: Don’t continue to go back to the seller with small increases in your offer like, less than $1000. The constant back-and-forth can grow tiresome and lead the seller to consider other opportunities. Nobody likes to be nickel & dimed!
- “Take it or leave it”: Try not to draw a line in the sand with your initial offer. The seller can get defensive and consider other offers if you immediately show that you’re unwilling to budge. Even if it’s true, don’t make a show of it. Be prepared to work towards finding a common ground. Many sellers have an emotional attachment to their homes. Hurting their feeling usually doesn’t work as a negotiating tactic.
- Nitpicking after inspection: Obviously if inspection reveals a major issue, it should be factored into the final sale price or repaired by the seller. Insisting on a lower price for every minor repair on the home inspection report can put negotiations in a stalemate and break the deal. Inspections are more for the buyers then the sellers. Learn from the inspection and understand that maintenance is part of being a home owner. Final walk through should not be a time to renegotiate.
- Asking for more, more, more: Some buyers will request that the sellers throw in add-ons like furniture or appliances that weren’t included in the listing. Try to avoid giving the seller a reason to build up resentment and think that you’re being greedy. Everything has value and the seller has no obligation to give personal property to the buyer for FREE.Doug Doyle, Associate Broker- 302-270-4135 The Moving Experience Real Estate
