| Avoiding Sour Negotiations |
Negotiating can be tough. It is more an art of applying techniques to each unique transaction rather
than cut and dry responses. With home sales, each home has a person behind it with emotions that can
be triggered either positively or negatively. Whether I am the agent for the buying or selling end,
I try to advise my clients with facts rather than emotions. I have run into other agents who get
quite emotional and defensive about a transaction, and I can understand that inclination because
some deals can just become so frustrating, but as the agent, it is best to take a step back and
provide professional consultation instead of escalating your client's emotions. These are some
negotiating techniques to keep in mind as options rather than letting a negotiation go sour.
1. Don't sweat the small stuff.
It is common that people will haggle or get attached to small things like refrigerators. I try to
put these things in perspective for my clients. Would you rather convey a $1000 used fridge to these
buyers who are ready to move forward with just this one concession, or do you want to put it back on
the market and pay more mortgage payments until the next buyer is interested? A lot of times, if
you look at the overall picture of how much it will cost to put something back on the market, including
mortgage, taxes, and insurance, there will be a breaking point at which the seller understands it is
not worth the money. From the buying perspective, if we take the fridge example again, is it really
worth the fridge to spend more time looking and spend money on another inspection? Sometimes your
client will say that it is worth ending the deal, and in that case, you will represent them as they
want, but most people become rational after they get past the initial emotions of "w!
anting" something. And some clients will even thank you for helping them through the small things.
2. Negotiating other issues.
Think creatively. Sales price is not the only issue in a transaction. Closing a couple weeks earlier
may be the best for both parties and can be negotiated rather than concentrating only on sales price.
One new home buyer offered her home to be on a property tour once a month in exchange for $5000 in
closing costs paid by the seller. Basically, understand the other party's situation so that you can
try to come up with something that might benefit them as well as who you are representing. That way,
you can hopefully turn the negotiations into a win-win situation.
3. Offering packages.
As a buyer, don't negotiate one thing at a time. When you present items to be resolved, for example
repairs, always do this as a list. That way, you can trade-off one thing for another. For one,
negotiating one thing at a time is a waste of time when everything can be discussed at once. Everyone
is busy with their lives, and no one wants to be pestered multiple times about one more repair item.
This just makes the seller progressively more irritated and less agreeable to the next thing you ask
for. Also, the list format forces the issues to be prioritized, and you can set your boundary of
what can be left out and what absolutely must get resolved.
4. Dealing with threats.
This does not happen often, but some people will threaten termination as a bargaining technique. I
would not advise using this technique, but it is good to know how to deal with it because the typical
natural reaction is to tell them to buzz off. One solution is to ignore it and just talk about the
strong points of your property or client. You can also re-frame threats to show that it is not in
their best interest.
5. Knowing when bargaining zones do not overlap.
Sometimes the negotiations are just not going to happen. A buyer and seller are at opposite ends.
In this case, rather than continue to make ridiculous demands (or at least seen as ridiculous by the
other side) and creating a volatile situation, it is time to end the transaction and move on.
Escapeso Austin Real Estate is a team of real estate agents who
provide consulting to clients. Their site provides a free home search of the Austin MLS along with a Real Estate Calculator.
They also provide services for investors, first time home buyers, and sellers alike.
contact name: Dane Smith
contact email: dane@escapesomewhere.com
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