Step 6 in the House Buying process is the NEGOTIATION!
Sometimes, it’s what you DON’t do that makes the difference.
There’s no need to be a bully.
When you’re being bullied, sometimes the best response is loving, tender kindness (It drives’m nuts).
The best strategy is to have one.
This isn’t a race . . . Let the negotiation breathe and know when to hold’m and when to fold’m.
Don’t ever let’m see you sweat.
Be like a duck – Calm and unruffled on the surface yet paddling like the dickens underneath.
When at a loss for words, simply say: “Bless their Hearts.”
I am going to make the assumption that you have read “Step 5 – Analysis, Strategization, and Negotiation Prep” and you’ve done all of your homework.
If so, you’ve already designed 80% of the negotiation.
You already know most of what you need to know about the Seller and the House. This puts you at a distinct advantage because you know more about them than they know about you.
What to do with all of this knowledge?
Before putting pen to offer, your REALTOR can call the Listing Agent and ask simple questions like:
- “Will you tell me the Seller’s Scenario?” (Then shut up and listen – Sometimes you’ll get ALL the poop without having to ask any more questions)
- “What is the Seller’s best moving time frame?”
- “Where is the Seller moving? Have they already bought something else?”
- “Are there any unique condition issues with the house?
- “Will the seller be completing the improvements they started but haven’t yet finished?”
- “Does the seller intend to replace the fogged windows?”
The idea is to get as much information such that you, the buyer, can build a friendly offer . . . one that’s EASY for the seller to accept.
When many terms are ALL perfect for the seller, other “negotiable terms” (Like Price and closing costs) are invariably easier to resolve.
We’re looking for “Mutual Agreement” because that will yield a much smoother contract to close period.
“Time is of the ESSENCE” so be sure to write that first offer as soon as you feel comfortable with the information you have. If there are missing bits of information, you can always make your offer contingent upon your satisfaction of those issues.
Our Team at Pareto Realty prefers to present all offers to the listings “In Person” . . . This usually means on the phone, so we can “Humanize” you, the Buyer. We want the Listing agent to “LIKE” us and our Buyers, so we tell nice things about the Buyers and tell the story about how excited they are to have this opportunity to own such a great house.
The above strategy facilitates skillful handling of the dreaded “Multiple Offer Scenario.” When facing “Competition” for a house, we might even ask our Buyer to write a heartfelt, personal letter to present with the initial offer. Even without that letter, a better informed Buyer can meet more of the seller’s terms (like optimal timing) and WIN.
I’ve mentioned “Strategy” a LOT, and there’s good reason. With every offer and counter-offer, I talk through with the Buyer Client the possible responses from the Seller . . . and how WE will likely respond to each . . . We are always thinking 2 steps beyond the Seller . . . and we KNOW what our bottom line is. This offers a HUGE advantage for the Buyer.
Speed and attention to detail are MOST critical during this phase. If we can control the “tempo” of the negotiation, our odds of winning increase exponentially . . . and capturing every iteration of the negotiation on the appropriate paperwork is also essential. Even if this means creating paperwork that the Seller’s agent should be generating, we’ll do it in the interest of completing the negotiation.
All the while, beware the “Dead Moose” – In almost every negotiation, there’s a messy reality/undertone that may stand in the way of reaching agreement. This could be the Seller’s emotional attachment to the house – or shaky financing for the Buyer – or known but hidden material defects in the house . . . I’m always sniffing around for the stench of a Dead Moose.
Everyone WINS when a negotiation results in a mutual Binding Agreement.
Step 7 is BUSY BUSY BUSY as we work our way through “Due Diligence” and removing contingencies – Stay tuned!
At Pareto Realty, we practice practice practice our Negotiating Skills incessantly.
Throughout the negotiation your Exclusive Buyer Agent is focused on negotiating the BEST price and terms for YOU. The quintessential Strategist gains a STRONG position for you throughout the negotiation and “engineers” a pace & rhythm which will deliver optimal results.
We are ever-aware that this is the most sensitive, time critical, and potentially stressful phase of your home purchase –
When it comes to negotiation, WE ROCK!
Call us NOW to get this process started!