As real estate agents, we negotiate during real estate transactions all the time. I always have to remind myself that most people only buy and/or sell once every seven years. Because of this most people are not master negotiators when it comes to real estate. Here are some of the most frequent negotiation mistakes we see buyers and sellers making.
US VERSUS THEM
One of the biggest mistakes I see buyers and sellers make is having the “us versus them” mentality. Although it may seem like a real estate transaction is the buyers versus the sellers – that is just not true – because there is a common bond between the parties. This common bond is of a shared goal: which is the transfer of the property. Whenever there is a shared goal in mind, collaboration is necessary – so the mindset needs to shift to one of collaboration. If buyers and sellers can keep the idea of collaboration in mind – the transaction will go much smoother and both parties will give and take and usually end up happy.
THE OFFER PRICE IS THE END ALL
The offer price is a large part of the transaction but there are a lot of other things that go into it. For example lets say you are the buyer and the seller counters your offer of $230,000 at $240,000. That may seem like you are $10,000 apart. But what if the seller offered to pay for closing costs (lets say around $6,000), left the refrigerator and let you have the closing date you preferred so you didn’t have to pay rent for an extra month. That seems like you are closer than $10,000 apart. So always remember there is more that goes into a deal than just the price.
NOT COUNTERING
One of the biggest mistakes we see with usually mores so with sellers (and occasionally buyers) is when they receive a low offer that they consider offensive and refuse to counter it. First off, a real estate offer should not offend you, this is a business transaction and they don’t personally know anything about you. It is not a personal attack. Also, what is the hurt in countering? I would even prefer a counter $100 less then the list price over nothing at all. By countering you are keeping the possibility of the transaction alive and you come off as a real/motivated seller or buyer. Remember the goal. And keep your emotions in check.
GIVING AWAY TOO MUCH
At the end of the day, this is a business transaction and you need to treat it as such, don’t give away more than is necessary and fair.
NOT BEING FLEXIBLE
There are certain things in a transaction that you just need to be flexible with – remember the bigger picture. Are you willing to walk away from a deal over curtains?
DON’T LET PERSONAL PROPERTY AFFECT THE DEAL
If the seller doesn’t want to leave the pool table don’t let it kill the deal. Move on and buy a new pool table. AND Um. Pro-tip: Please don’t ask for the dog. For my sake.
My final thoughts on this are just to be reasonable. Don’t let the emotions get the better of you. And remember both the buyer and seller want the same thing. 🙂
Xoxo,
Lisa Stigliano
Co-Owner of Nashville on the Market Real Estate
