Having different personalities, negotiation is a subtle art in real estate. With the assistance of a skilled Real Estate Broker, delegates can find common ground that satisfies all parties. On the other hand, using the wrong negotiation tactics can sink a deal quickly. Here are some negotiation tactics purchasers (and real estate professionals) should avoid:
- “Take it or leave it”: Try not to draw a line in the sand with your initial offer. The seller can get defensive and consider other offers if you immediately show that you’re unwilling to budge or have open dialogue. Even if it’s true, don’t make a production of it.
- Lowball offers: Going far below market value when you make an offer damages your credibility as a buyer and can be insulting to the other party. The seller has a range in mind that they’ll accept, and if you’re not even approaching the low end, they won’t consider the offer or even a reply.
- Incremental negotiations: Don’t continue to go back to the seller with small increases in your offer ($1,000 or less). The constant back-and-forth, grappling personality, can grow tiresome and lead the seller to consider other opportunities, quickly.
- Nitpicking after inspection: Obviously if inspection reveals a major issue, it should be factored into the final sale price. But insisting on a lower price for every minor repair can put negotiations in a stalemate.
- Asking for more, more, more: Some buyers will request that the sellers throw in add-ons like furniture or appliances that weren’t included in the listing. Try to avoid confusing personal property with real property. This happens to be a common mistake.
Kimberly, experienced Maui real estate Broker with Living Maui Real Estate, LLC, is confident & comfortable addressing these objections. Part of the negotiations is being direct with both your client, principal, and the other party.