Watch Out for the Buyer's Agent, FSBO Possum! He Negotiates Home Sales Every Day!
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- Negotiating the Deal
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It is a fact of modern real estate life. Most buyers are represented by a REALTOR® as a buyer's agent.
There is nothing wrong with that. In fact, it is a VERY good idea for a buyer to be represented this way.
Remember, the buyer's agent has a fiduciary responsibility to try to get the very best deal for the buyer. And they do this
for a living! But whether the buyer is represented by a REALTOR® or not, here are some negotiating tips:
- Don't Like Negotiating? You are NOT Alone.
- The truth is that many things in life are negotiable. Americans
are not in the habit of negotiating, except for cars and homes. Unlike some cultures, where every business transaction is
an exercise in haggling (the proverbial "rug bazaar"), we don't do too much of it in our daily life. So, you may want to
have help with this aspect oif you are not comfortable. One trick is to, before you get into the heat of the negotiations,
research and decide the minimum price that you will take. Write it down. Agree about it with your spouse or other owners. If you are
on the verge of taking less, think hard. Don't go below what you set out to get. Don't let the heat of the moment
get you to agree to a price that you really don't want, or do other things like take back a second mortgage when you previously
decided that you don't want to do so.
- Don't Get Offended By Low-Ball Offers.
- Even the best intentioned buyer will
offer you less than your asking price. With FSBOs, the buyer knows for a fact that you are not paying for a REALTOR® to
sell your home. A savvy buyer wants to pocket some of that savings at least as much as you do!
Remember, no matter how low the offer is, this is all business, it is not personal. Instead of getting mad,
Why not make a counter-offer? You have nothing to lose, and you may be able to get up to an acceptable amount.
If not, don't worry about it. If your home is priced right, you can sell it.
- Don't Get Emotional.
- Even if a potential buyer comes in, laughs at your family heirlooms,
thinks the wallpaper is hideous, and wants to put a pool over your prize flower garden, don't sweat it. After
you get your check, who cares what they think of you, or what they will do to the house? They can put three old Buicks
up on blocks in the front yard and paint the house Conrail blue, and you won't be able to see it from your new house.
Don't sweat it. Remember. Think, don't feel. Keep the emotions to yourself. Emotional responses can kill deals, and
will keep money out of your pocket.
- Even if the Buyer is a Jerk, He or She is NOT the Enemy.
- It does not matter if the buyer smells bad, is obnoxious, or is a real jerk. Remember, you are not trying
to marry this person. You are just trying to get his or her money, which spends just the same as the money of
a saint. Try to find common ground, and be collaborative. While you need to preserve your interests, there is no
reason to be needlessly adversarial. Adversarial attitudes kill deals.
- The Perfect is the Enemy of the Good.
- Don't hold out for the perfect offer. If a legitimate offer meets your needs, you should probably take it. The
temptation is to hold out for the absolute best, above-asking-price deal. If you get it, great! But remember, a
bird in the hand is worth two in the bush. Negotiate to get the offer where you need it to be. Once it is, accept it.
Don't turn down an acceptable, tangible, offer for possibly vain hopes of a higher offer. If your home is priced
reasonably, then it is unlikely that a blind drunk millionaire will stumble by and offer you double your asking price.
- Take Into Account the Cost of Holding Out.
- Remember, you still have to pay your mortgage while you are selling! if your house note costs you $1500 per month,
then who are you hurting if you reject a deal that is over your bottom dollar price, but is not quite what you want?
If you are within $500 of your ideal price, rejecting that deal costs you money? Do you really want to make a point,
or do you want to sell your home?
- Explain Your Selling Price.
- If your price is set at a realistic amount, and the buyer balks, take the time to explain your pricing methodology
to him or her. If you can support a price as being based on comparable sales, and not just on lights of fancy, then
you ought to be happy to show your data to the seller.
- Be Reasonable About Repairs.
- If something needs fixing, you need to either fix it or make reasonable concessions. I am not talking about trivial stuff.
I am talking about the systems that need to be working for people to live in a home. Banks won't generally loan money for
people to buy your house with the roof caving in. You'll likely either have to fix it or give concessions to enable the buyer to fix it.
For trivial stuff, you can fix it, the buyer can fix it, or nobody can fix it. It is all negotiable. Just don't let a $50 repair kill your deal!
- Be Honest.
- Don't lie about anything. Besides the moral, ethical, and legal issues, any hint of dishonesty will almost certainly
kill a deal. Think about things from the buyer's point of view. They buyer is thinking, "Would you buy a used car (house) from this man?" If the answer is no,
you need to clean up your act! A sale that ends up with you in court is never a good transaction!
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