UrbanInsight Newsletter: Spring 2004

MOST HOME BUYERS AND SELLERS HAVE A COMMON GOAL: ARRIVING AT A WIN-WIN AGREEMENT WHEN BUYING OR SELLING A PROPERTY.

But that’s not to say that either side wouldn’t prefer getting a bigger “win” than the other. The agent you choose to represent you in the sale or purchase of a property can successfully maneuver you through this tricky aspect of a real estate transaction. Successful negotiating is much more than luck. As agents with many years of experience, we have learned the finer points and use certain skills and techniques to produce positive results for both parties. Here are a few tips towards negotiating a successful agreement:

1. Start with a fair price or a fair offer. A buyer has no desire to begin negotiations on a significantly overpriced property. If you choose to over price your property by ignoring the sales comparables in your neighborhood you will instantly lose a significant amount of potential buyers for your property. Likewise, making an offer that is significantly lower than a seller’s fair asking price is guaranteed to alienate the seller. As professionals we provide both buyers and sellers with accurate, recent sales comparables in the neighborhood.
2. Respect the other side’s priorities. As experienced agents we always look a little deeper by finding out what is most important to the person on the other side of the transaction. This can help a buyer or seller to avoid pushing too hard on a sensitive or hot issue. For example, a seller who is very emotionally attached to a property may not be willing to budge on the selling price but might be willing to offer some of the buyer’s transaction costs or make a few repairs to facilitate the purchase. Or, a buyer with time constraints that has an urgent move-in date might be willing to forgo a few repairs or pay a little above a fair asking price in order to have the move-in date they need.
3. Be prepared to compromise. This may be one of the most important negotiating points. Both sides should be able to feel comfortable with the notion that they will win some and give some. Approaching any negotiation with an adversarial winner-takes-all perspective will either lead to a breakdown of a successful transaction or can create a very emotional and stressful escrow process with a strong possibility of the deal falling out of contract. Remember to not let emotions overrule your better judgment. As experienced agents, we can be the voice of reason throughout
   negotiations.
4. Meet halfway. Come to a stand off or sticking point in the negotiations? Splitting the difference is a timehonored negotiation strategy.
5. Set it aside. If there is an issue during negotiations that is not material to the overall contract (e.g. the purchase of appliances or furniture), finish the main agreement, then try to resolve the personal property issue in a side agreement or amendment to the purchase contract.
6. Ask for advice. We have been through both sides of the negotiating process hundreds of times. We have seen what works and what doesn’t in countless real estate transactions and have established a track record of successfully bringing buyers and sellers together. We are here to help you focus on your top priorities, remove the strong emotions from the process and have everyone come away from the table feeling good about the sale or purchase. Our goal: to negotiate a “YES”.

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