Negotiating a successful real estate sale requires creating an environment that sustains the buyer's interest and trust during the process. The goal is to reach a good agreement - one in which the underlying interests of both buyer and seller are met. The results of a poor agreement often return to haunt the parties after closing. Many of our real estate clients have been experienced negotiators in other industries Black Matt Kemp Jersey , and we have learned from their skill and experience. Here are some thoughts to consider as you prepare for the sale of your home. What do you want to achieve in the negotiation? Letting the buyer know what you need, in a clear and reasoned way, is the first step toward getting it. For most people, price is the highest priority, and is given the most attention. The buyer's offer must be evaluated in light of a market analysis, marketing time and buyer responses. This will give you an indication of what a reasonable offer should be. In addition to price Black Wil Myers Jersey , there are other needs to think through. Distinguish between must-haves and would-likes. Your interests might include: 1) Selling at the highest price possible. 2) Coordinating your move to your new home. 3) Setting the closing to meet your travel, school or work time frame. 4) Resolving any repair issues fairly. 5) Protecting yourself by having complete property disclosures. 6) Locking in a mortgage loan rate for your new home. 7) Having no title or survey issues, or solving any that do arise. 8) Completing your relocation process and getting settled into a new home. 9) Forging a good relationship with a buyer who appreciates your home. 10) Having no future problems or unexpected issues after closing. How much leverage do you have? A big factor in your leverage is the underlying market condition. If you are in a seller's market you should receive offers at the top of the range. This is especially true if your home is in a hot area and has great appeal. If you have multiple offers, you have very strong leverage! Buyers must make their best offer up front. If you are in a buyer's market, and your home has been for sale for many months, you have a lot less leverage to work with. Knowing the buyers' underlying interests will help you improve your leverage. If you see that they love your house Dave Winfield Jersey , you have some leverage. If their time frame is immediate, and you can meet it, you have some leverage. If you can meet some of their secondary needs, you have some leverage for a better price. If the buyer is a dispassionate investor you have very little leverage. Be careful that you do not accept an offer that contains a high risk contingency to sell the buyer's home, or a long option period, or a buyer without approved financing. These offers have a down side that may be difficult to live with. Buyers should submit a letter from a lender giving their qualification status. Understand the Option Period In Texas Tony Gwynn Jersey , our contracts contain a short option period during which the buyer can terminate. We all breath a sigh of relief when the option period is over. In the long run the option period protects you, the seller. It allows time for the buyer to do inspections and answer any open questions. Keep in mind that, for many buyers, taking the first step in a big decision is hard. Once the ball is rolling it is easier for them to stay on track. Action creates commitment. There are subtle pressures to keep the buyer in the deal, such as face saving, and time and money investment. Is an adversarial or cooperative approach more effective? There is nothing more destructive to the negotiation process than the adversarial style. Professional negotiators try to preserve the relationship between the parties. We do not want to reach an impasse in which neither the seller's nor buyer's needs are met. Occasionally James Shields Jersey , buyers include a note with their offer explaining why the house is not worth the price, pointing out deficiencies, etc. This starts the negotiation off with a defensive or angry seller. In the same vein, your attitude toward the buyer can be effective in building their interest in your home. The negotiation process usually begins with some degree of distrust between buyer and seller. The goal is to move in the direction of trust as quickly as possible. How do you work with a combative strategy? Sometimes you must work with an adversarial buyer or agent. Their strategy might include: snide remarks, defensive arguments, emotional statements Matt Kemp Jersey , threats to terminate, ego involvement, and stated positioning. Creative solutions are not likely to be found in this environment. Good control of your own emotions is critical when working with a combative negotiator. Here are some pointers: 1) Do not respond emotionally. An angry or defensive response will escalate the negotiation into a no-win battle. 2) Do not argue. Arguing usually positions them more strongly and drags the negotiation process off course. 3) Do not ignore their arguments. Listen carefully, but do not accept or reject. 4) Accept the fact that strong emotions are present. They may be a negotiation tactic - to cause fear or submission. 5) Avoid an "us-against-them" strategy. Attach cover memos to your responses in order to communicate with the buyer and break down barriers. 6) Firmly anchor pricing and other points to outside data. Show that your proposals were not chosen unreasonably. 7) Do not allow hazy proposals to stand. Put everything in writing. An emotional negotiator will usually produce an unclear agreement. 8) Offer some wins on some of the terms. Face saving is important. 9) Make your counteroffer as attractive to them as possible. Look for ways to meet their underlying needs. 10) Keep your overall interests in mind. They may be qualified buyers who can satisfy your goals. Is every po.
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