Realtor’s knowledge can help you avoid mistakes in negotiations
According to Danny Frank of Prudential Anderson Properties, www.andersonprops.com & the 2013 chairman of the Houston Association of Realtors, www.har.com in Sunday’s May 19, 2013 article from www.chron.com, negotiating in a real estate transaction is exciting or terrifying, you won’t get the things you don’t ask for. If there is something special you want, speak up! Your Realtor, Laura Hill Realtor, www.localkatyrealty.com, is an expert at hashing out contracts so both parties are content. Whatever your opinion of the process of reaching consensus may be, here are some mistakes to avoid when negotiating a deal.
People, including some real estate agents, often let emotion dictate their negotiations. I recently had an agent lose their cool, lost their perspective and threatened a law suit 2 days before closing over $100 worth of curtains. It can get really ludicrous sometimes because agents allow their emotions control way too much of the current situation instead of coming to a calm resolution of issues like I always prescribe to. Cooler heads prevailed and the closing happened on the closing date.
Don’t get angry when a buyer presents a low offer for your home. He’s not insulting you, and he doesn’t think your house is poorly maintained. The buyer needs to start the negotiations somewhere. He may be testing the waters to see how low you’ll go. Or his negotiation tactics could have been formed where negotiating is handled differently. Whatever the case, if you see the offer as an insult and choose not to counter, you may be cutting off the process that would have resulted in a sale.
On the buying side, don’t get bent out of shape if a seller rejects your offer or counters with his original asking price. You may have determined that you presented a very fair price for the house. Good for you. Try again or move on.
It’s not personal!!!
Keeping emotions out of a deal also means maintaining a business relationship & not feeling sorry for the other side. If the seller rejects your fair offer based on “needing more money for my retirement fund,” ask for a reason that’s relevant to the property sale. On the other hand, if a buyer said they can’t afford your asking price, but you believe you’re asking fair market value, stick to your guns. Maybe yours isn’t the house for them.
What’s the lowest price you’ll accept for your home? What concessions, if any, will you make? Answer these questions before you put your home on the market and revisit them if your home isn’t seeing the activity you hoped for. And for buyers, what’s the absolute most you can afford? How close are you willing to come to that number? Whether you’re buying or selling, be sure to share this info with your Realtor so he or she knows your priorities.
Splitting the difference
Whether you’re buying or selling, don’t allow an extreme offer to affect your counter. Are you willing to jeopardize the sale of you house because the buyer wants the entryway mirrors to stay? As a buyer, how will your monthly payments really be affected if the seller won’t drop the price another $5,000? Sometimes you have to take a step back to make sure you’re not over emphasizing one detail that is standing between you and your objective. This is when your Realtor should come in and explain the “real” pros & cons of each transaction in order for the buyers & sellers to have a better perspective and view of the bigger picture. At Laura Hill Realtor, www.localkatyrealty.com we are always putting our clients interest first to make sure they receive the best service and to deliver their needs to them and their family. We can help you analyze the current market and put together a specific, detailed buying or selling strategy that will always benefit you.