The Negotiating Process: Some Things to Watch Out For

[vobpem...@yahoo.com]

While we all hope that a sale closes smoothly and the outcome is fair
to both parties involved, the truth is that when a home is being sold,
both the buyer and the seller want to get the best deal possible.
Unfortunately, it usually just isn't possible for the seller to get
the most they possibly can for the home and a buyer to also be getting
a great bargain. During negotiations, both parties will be observing
their own agenda. Knowing the common negotiating tactics will help you
keep the outcome fair, whichever side of the deal you are on.
For a buyer, price whittling can lead to a lower sale price, but it
can also mean a missed opportunity. If you keep grinding the seller
with a low offer, and expect a whole bunch of "extras", don't be
surprised if they go with another offer. For sellers, be aware that
accepting a lower offer that has no strings attached may in fact make
you more money in the long run than a higher offer that requires you
to pay closing fees or finish renovations.
If a couple is buying or selling a home, they may play off each other
to move the transaction in their favor. For example, one spouse may
convince the seller the sale is imminent, then request more time to
talk to the other spouse. After a time, a lower offer may be presented
on the excuse that the other spouse isn't as sure. The fact is, if
someone wants a house, they will buy it. If they don't want it, why
would $5000 less make it any more appealing? To avoid having spouses
play off each other in negotiation, be sure to present offers to both
of them simultaneously. If only one spouse shows up at a meeting,
assure that they have decision making authority. If they don't then
the meeting won't be as productive. Try to avoid this scenario as it
delays the process.
Sometimes, a third party must be consulted before any decision making
can be done. Parties such as investors, loaners, co-signers or even
advisors may be required to give the Okay before a buyer will make a
decision. Be sure to determine this early on. If a third party is
genuinely necessary, this will be a factor that slows down the
negotiation process quite a bit. If one is not really necessary, a
buyer may be using it as an excuse to manipulate negotiations.
If a seller is stalling on accepting your offer, you need to remember
that you have the right to revoke your offer. While this is usually a
last resort, if your finances require a speedy closing, there is no
need to get stuck in one offer. If you let them know you don't have
time for it, and are willing to back out of your offer, they may just
change their minds and accept what you've offered them.
Both parties in a real estate transaction need to recognize what is
fair and just be honest about it. While no one party can win it all, a
fair price can easily be agreed upon if one knows how to avoid
manipulation and maintains an honest negotiating
style.
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