Negotiation is the critical key to success

Being informed is the best tool you can have during negotiations. Knowledge about the home’s condition, the range of value, and the many other aspects that affect value will be helpful to your ability to negotiate with confidence. In addition to information regarding the home’s features and value, you must be aware of and consider your emotional and financial situation.

So often, ego, misinformation, or stubbornness unnecessarily cost a sale. In many cases, one or both parties were not willing to consider the concern or objection of the other party. The negotiation process is to examine and understand each party’s situation. Because both buyer and seller often have decidedly different needs and priorities, the ability to listen, relate, and ask questions to seek alternatives is the best way to create a fair “win-win” agreement between buyer and seller.

Seek to understand – then be understood

To understand the negotiating process, you should first appreciate the other party’s circumstances and look for ways to bridge the gaps. For example, Let’s assume you are a seller, and you need ninety days after closing to move out because the builder still needs to finish your next home. The potential buyer needs to move in the day after closing. Instead of assuming it can’t work, discuss possible options together. There are several options in this situation for both parties. These options may not be free to implement, but you might find a middle ground you can both accept. 

Sit down together – face to face

When you immediately like the home when touring with the owner, that may be an excellent time to discuss potential terms. When you need time to consider whether or not to make an offer, wait until you know. You can discuss occupancy, mortgage, and other concerns listed below and agree together before writing a contract. If either buyer or seller is uncomfortable with face-to-face, the configuration of PropBox handles all communication between you, including negotiating the terms, on the platform. When both parties work toward the same goal and share standard information before making an offer, it improves the potential for positive outcomes. As a caveat, the common industry practice is to keep the buyer and seller apart. If you were to consult an agent, their training and beliefs will likely lead to discouraging the idea of negotiating without them.

POINT-COUNTERPOINT

When the buyer and seller first meet. Here is an insightful look at what they are thinking.

THE BUYER’S INTEREST

• Why are they selling?

• How was the price determined?

• Have they had other offers?

• How long has the home been for sale?

• Is the house worth what they are asking?

• Should I act firm or non-committal about my offer?

• How can I start lower than asking but not so low as to upset them?

• Will my financing contingency, or occupancy needs, affect my ability to negotiate?

• When should I introduce issues that affect value?

THE SELLER’S INTEREST

• How serious is their interest?

• How did they determine the offering price?

• Have they made other offers?

• How long have they been looking?

• Is their offer fair?

• How long should I wait to lower my asking price/ if at all?

• If I get a full-price offer within the first week or two, did I “undersell” my home?

• Can they acquire financing?

• Do they have enough earnest money?

• How urgent is the time of occupancy to me?

By registering and using PropBox, home sellers and buyers are gaining open access to communicate and interact. Success will often come when the buyer and seller directly align with this process.