7 Things Buyers Should Keep in Mind When Negotiating
About to enter negotiations for your ideal dream home? Be sure to keep these seven helpful tips in mind:
1. Respond to Counteroffers Quickly
When there’s a counteroffer on the table, be sure to respond as soon as possible. Whenever there are delays in negotiations, there’s a greater possibility of another buyer entering the picture, or worse: the seller might think you’re not a serious buyer.
2. Know That Builder/Developer Contracts Aren’t Set in Stone
When purchasing a newly built home, the builder or developer will dictate the terms for the home. When dealing with builders, especially large companies, everything is pretty much standard: contracts, required deposits, contingency removal or objection periods, and so on. Though it seems like there’s no wiggle room, you can and should actually try asking for concessions or upgrades.
3. Always Consult your Real Estate Agent
It might seem more efficient communicating directly with the seller, but doing so might create complications. Always remember to talk to your real estate agent regarding requests or concerns – he or she is better equipped to deal with all of the legal issues, and can help you avoid any potential pitfalls during negotiations.
4. Allow the Other Party to Act First
Having the other party state their position first will allow you to define the negotiation’s mid-point. For example, if someone involved in a negotiation offers to sell something for $100, and you make an offer for $50, you might end up getting the price lowered to around $75 – the mid-point. If you lower your offer even further, you’ll get a much lower mid-point price.
5. Gather Information
Never underestimate the power of information. During negotiations, the party who has the most information stands a better chance of walking away with a better deal. Make sure you know as much as possible about the object of the negotiation as well as the party you’re negotiating with.
6. Know When to Keep Silent
Silence is uncomfortable, but you can use this to your advantage. If you feel uneasy during periods of silence during negotiations, you can be certain the other party feels the same. So the next time you get an offer you’re not quite happy with, try saying nothing. You might be surprised how quickly the other party revises their offer, thinking your silence means you’re dissatisfied or disappointed.
7. Be Patient
Real estate negotiations can be a long and tedious process, so always remember to remain calm and be patient. Patience will not only help you see things objectively, it will also increase your chances of getting great results.