How to Negotiate A Home Sale Like A Pro

How to Negotiate A Home Sale Like A Pro

Bringing multiple parties together to agree on specific terms can be a challenge. Differing parties will have their own desires, resulting in divided opinions. That’s why negotiations often fall through, especially when selling a home. Personal matters can spill over into your conversations, whether you are the buyer or seller, creating a messy situation. 

Real estate agents can help mitigate these issues by being the neutral arbitrator. When negotiating a real estate transaction, you must be considerate of the other party’s demands without sacrificing your own. The main focus will need to be fairness and compromise. Be lenient about items that aren’t a dealbreaker for you while making sure the other party respects what’s important to you. Your Realtor® will recommend these great guidelines for you to follow:  

Never Be Desperate

Always be ready to walk away from a purchase price that won’t work. There will always be other options, with enough patience and time. In some cases, your real estate agent won’t be able to come to a compromise with the other party despite their best efforts. When neither side will budge, give each other time to think it over. If there are still no compromises, walk away. 

Be Likeable 

Nothing can make a deal more sour than unlikeable personalities. Be understanding and always have a calm, even tone of voice. Make someone angry enough and they’ll want nothing to do with you. If you aren’t great at talking to people under pressure or while stressed, let your real estate agent help you manage the situation. They can communicate effectively on your behalf.

Create Solutions

There are many ways that both the buyer and seller can create a win-win outcome. Always come up with solutions that will make everyone feel comfortable with the decision to move forward. Items that your realtor® might want to re-negotiate with the other party include the following:

Property Taxes

Your real estate agent can negotiate pre-paid property taxes for the remainder of the year. This can remove an extra burden and would be a great perk for the buyer.

Inspection Fees

Loan applicants are required to pay for an inspection to assess the property before a sale. This prevents the overpricing of a property. Covering these fees can appeal to buyers as well.

Title Insurance

Title insurance will protect a home buyer’s rightful claim to the home’s title. This is helpful in the case that the home wasn’t legally the seller’s property. When this happens, the buyer can be compensated for their losses. If a seller covers this, it can help drive a more preferable price point.

Loan Origination Fees

When a buyer takes on a loan, they are required to pay loan origination fees. This extra expense can be covered by the seller to help encourage the purchase of their home.

Recording Fees

All home sales must be documented by the local government and require fees. Either party can take on these fees in goodwill.

Mortgage Points

Also known as discount points, mortgage points are a form of upfront interest to help reduce the interest rate of a mortgage loan. If your real estate agent thinks this is a good way to bargain, they may recommend this.

Attorney’s Fees

In Florida, attorneys are not required to review closing documents. However, if one is used, either party would have to cover the fees for the closing documents. Dividing this cost in half or volunteering to cover these costs is another way to negotiate a price point.

Appraisal Fees

A licensed company will need to appraise the home to determine its market value. Covering this cost is typically the buyer’s responsibility, but can be covered with the seller’s help. The seller might also obtain the appraisal before listing it so that buyers know it has been pre-appraised.

Repairs

Older homes that haven’t been renovated may need a few repairs. To appeal to buyers even more, sellers can cover the cost of specific repairs that were a dealbreaker for them. They can also reduce the list price to match the cost of specific repairs. 

Escalation Clauses Are Useful

Buyers can draft an escalation clause with their real estate agents to pay a certain amount higher than the other buyers’ offers. Escalation clauses are one way to cut into the competition and get the seller’s attention. Realtors® are a great guide for deciding how much they think should be offered in this instance.

Talk Face to Face or By Phone

We are all people, which is why it is better to perform a negotiation in person or over the phone. To make it easier to compromise and work together, meet in person in a comfortable setting. Negotiating online, for example, by email or text, is impersonal and can lead to many misunderstandings. Talking over the phone works second best, and speaking in person can help you quickly find a resolution to break down barriers. If it doesn’t work out, then you’ll know immediately after the meeting.


Speak Carefully and Listen Carefully

Pay close attention to the reaction from the other party. Any sound of surprise, dissatisfaction, irritation, or contrarily–happiness, delight, or relief, is important. It can help you understand the other party and what they are attempting to accomplish.

Your real estate agent will communicate in a way that benefits both you and the other party. They can deal with the other party’s pains, making decisions depending on everyone’s needs. Conversating in a way that solves the problem with a solution will help prevent arguments and disagreements.

Stay Calm and Understanding 

Approach the negotiation with calmness and consistency. Be open to the other’s point of view without losing your standards. The sale should benefit both parties, so being understanding of each others’ issues with the property can help open up the conversation on common ground.

Stay Educated

Figure out what the other party’s angle is. Understanding their motivations and purpose can help you and your real estate agent understand how to appeal to them. If you are knowledgeable about the circumstances of the housing market, this can also help. How long the house was on the market, the market price for similar homes, or the average price of homes in that neighborhood all play a part in the decision-making process. You’ll know whether or not to bargain on a price point depending on how fast the market is moving.

Be Straightforward About Your Main Focus

Be honest about your goals and what you are looking for. This will help save time so that the other party understands if they can agree to your terms or not. Being indirect and indecisive will only waste you and the other party’s time, creating a more frustrating situation. Any dishonesty may work initially, but it will eventually come back to bite you later on. 

Meet In The Middle with Trusted Dale Sorensen Real Estate Agents

When you have a great opportunity to negotiate the price of a real estate purchase, remember to be patient and take your time. Your Dale Sorensen agent will do all the research necessary to make sure you are prepared for a real estate purchase agreement that’s fair. They will educate you to help prevent unpleasant circumstances from happening out of the blue, such as clouds on the title or other inconveniences. Speak to a Dale Sorensen representative in person in Vero Beach, Sebastian, Melbourne, Hutchinson Island, Indiatlantic, and other locations in the Treasure Coast and Space Coast. Call us today to get started.


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