Whether you’re a buyer or a seller, the home negotiation process is one of the most critical steps in determining the success of your real estate transaction.
This process can seem confusing or overwhelming. While most likely you’ll have a real estate agent on your side, it’s a good idea to arm yourself with the information you need to make educated decisions on this transaction. Learning key negotiation strategies will put you in the position to confidently navigate this process – no matter what type of buyer or seller you’re negotiating with.
The home negotiation process is more likely to be a win-win if you avoid these 6 mistakes:
1. Neglecting To Do Your Research
You’ll need to be armed with the latest information about the local real estate market to negotiate effectively. Confidence and excitement are great, but you’ll want to do some research to legitimize the price you’re putting on the table.
When you take the time to get clear on the stats and reasoning behind your offer or counteroffer, the entire process will go much more smoothly.
2. Forgetting To Set Your Emotions Aside
As we mentioned above, excitement and confidence are great – and even sometimes essential to the home negotiation process. But do your best not to become so attached to one property, one buyer, or one detail of the deal that you can’t think clearly and negotiate effectively.
The other party can sense you’re emotionally involved much more quickly than you might imagine, and you’ll be at an instant disadvantage.
Still feeling yourself getting a little too attached to a very specific outcome? Write down alternatives in case things don’t work out quite as you’d hoped.
3. Letting Your Pride Get In The Way
Of course it doesn’t feel good to walk away from a home negotiation knowing you could have gotten more. But your determination not to lose can actually be your downfall.
You’re much more likely to push the other party away if you’re always trying to get more and refusing to give. It can help to keep in mind that you and the other person are actually working towards the same goal! Don’t miss out on a great deal because you’re letting your pride run the show.
4. Focusing Solely On Price
Knowing what you can use as leverage in your negotiation is critical. While the main objective for both buyers and sellers is the price, understanding that everything is negotiable will help your cause. If the seller won’t budge on price, perhaps they’ll include furnishings such as the washer and dryer. Everything from lighting, appliances, and even furniture to contract terms are things you can negotiate.
5. Reacting To An Offer Before Thinking It Through
When it comes to home negotiation, sometimes it’s only natural to have a gut-level negative response to an offer or counteroffer. When you first receive an offer, take a deep breath. No matter what, you’ll want to read through every detail and deeply consider all the pros and cons.
If, even after your emotions have subsided, you find that the offer still doesn’t work for you, then create a counter offer that does.
6. Forgetting You Can Pause Your Home Negotiation
There may be times when your positive mindset just won’t cut it and you’ll feel tempted to give the other party an ultimatum. But don’t forget there’s third option: to stop the home negotiation process – at least temporarily.
Being aggressive is always risky – you may alienate the other party and cause everything to fall through. Because of this risk involved it’s best to avoid this tactic whenever possible, and instead simply pause the negotiation process and take a breather.
Bottom line: Even if you are working with an agent, knowing what affects the home negotiation process is in your favor. Negotiating a purchase of sale of a home is hardly ever straightforward and there are many issues that can crop up. Arming yourself with the right information and using it in your favor can make all the difference.