Whether you are buying a home or selling one, it is likely that once an Offer To Purchase is on the table, you’ll enter a phase of the transaction called Negotiation. Fear not – this is how both sides “win.” By following a few reasonable recommendations, both parties can turn Negotiation into Agreement.
It’s best to begin with a fair asking price and a fair offer. Sellers, don’t shoot for the moon. Buyers, don’t lowball on a home you really want. Overpricing is a turnoff to potential buyers, while low offers may meet with outright rejection.
Next, understand and respect each other’s priorities. Seller won’t budge on price? Perhaps they would pay more of the transaction fees. Buyer urgently needs quick possession? Perhaps they would forgo some repairs.
This illustrates the value of compromise. A win-win situation doesn’t necessarily mean that both parties get everything they demand. Avoid emotional decisions and be open to concessions. If you can’t agree on a particular term, try meeting in the middle. Who will pay closing costs? Who will pay for repairs? You needn’t hold up the entire agreement when you can simply split the difference on certain terms and move forward.
Experienced real estate professionals are successful negotiators. Bringing buyers and sellers together is Job Number One. Protect your best interests by seeking the advice of a professional.
This article was originally published on this site on December 14, 2015. It has been updated reflect the current home market.