Sometimes people can let ego and self importance get in the way of their ultimate goal, to buy or sell their home. While I wish there was a magic spell that could be cast to get the buyer the best purchase price or the seller the best sale price, there isn’t such an incantation. A good negotiation consists of both parties giving and getting what they need to make the best deal for themselves.
A deal is not always just about price. Sometimes offers can come in at a higher price but the terms are not favorable. For example, a buyer needs to sell a property to buy a new one; or a buyer is financing a first and a second and needs more time to get loan approval. Maybe a seller needs more time to build a new house, so they need to close escrow and rent back from the buyer. That might not always work for every buyer. Terms are an important component of any deal and have to be considered as well.
When negotiating the purchase price of your home, as a buyer, you should know the value of homes in your chosen market. Ask your Realtor to give you a CMA of the area that you are interested in living in. Buyers also need to know their value as a buyer. Do you have a good sized down payment? Are you a cash buyer? Do you plan on getting more than one loan? Does the buyer need more time to sell their own home?
Have a realistic ‘Go – No Go’ zone. As a buyer, what is your absolute top purchase price going to be? What are your terms and conditions? As a seller, what are you willing to sell your house for? What items are you willing to sell with the house for the right price? Would you consider paying the buyers closing costs?
Nothing here is cast in concrete. Having these numbers and terms in your mind will make you a much more savvy negotiator. As told and retold by the press – When GE called Warren Buffet for a loan during the 2008 stock market crash, Warren Buffet was so knowledgeable about the top and bottom of the market, cash and balance sheet of GE that he was able to make a deal with the CEO of GE over the telephone. Knowledge is power in a negotiation. Take the emotion out of it and really dissect the transaction for your own good!
Please give me a call and let me help you figure it all out!