How to Come out on Top in Real Estate Negotiations

Negotiations are crucial in any real estate deal, so today I’d like to share some basic tips on how to be a strong negotiator.

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Very rarely does a buyer offer every penny, let alone every term, the seller is asking for. Therefore, negotiations are a critical aspect of any real estate transaction, and knowing the basics of negotiating can make or break your success as a seller. First, don’t be offended by counteroffers. It’s easy to forget that each party in a transaction has their own distinct motive. Sellers (usually) want to make the most money they can from their home sale, while buyers are often looking to strike a bargain. But merely understanding these differences won’t necessarily improve your negotiation skills. In order to be a skilled negotiator, you will also need to be knowledgeable about the state of the market. Understanding current market conditions will be paramount to your success in any real estate negotiation scenario.

The key to negotiating is being informed, being realistic, and working with a strong agent who can help guide you on the path to your goals.

And coupling your own knowledge with that of an experienced agent will only further your chances of striking a great deal. That said, those listing while in a strong seller’s market likely won’t need to negotiate much to begin with. In a competitive market, one potential buyer may be easily replaced by another. This isn’t to say, though, that there are times where conceding to a lower offer may be advisable. Along with understanding the market, you’ve also got to understand the “big picture” of the transaction as a whole. That means thinking realistically about how your, and the buyer’s, circumstances may impact the deal. If your home is in need of several repairs, but a buyer is willing to overlook them under the condition that they offer a lower price, you may actually save yourself some money by taking that reduced amount. Ultimately, the key to negotiating is being informed, being realistic, and working with a strong agent who can help guide you on the path to your goals. If you have any other questions or would like to more information, feel free to give me a call or send me an email. I look forward to hearing from you soon.