Negotiating to a signed contract
Negotiating a purchase agreement is the toughest part of any real estate transaction.
You want to buy this home, It is the nicest home you have seen. It beats all the other homes you have seen. But you want it at a certain price. You want it at a fair price. Yet the seller wants "this outrageous price" You definitely want get the best deal possible and not leave any money on the table. Successful negotiating is more than a matter of luck or natural talent. It is the ability to use skills and techniques to bring about the closing. results. Here are six tips and suggestions to turn negotiation into agreement:
1. Do not start with a low ball offer and lots of conditions. A Complicated offer confuses the buyer. They automatically think you are asking for too much. Start with a fair price and a fair offer. If the seller has over priced the home the ability to get the home down to where it should be (fair market value) may never happen. You have to chose to walk away or over pay for the house. Making an low ball offer usually upsets the sellers. Many times they may not even respond to you.Offering and sales prices should be based on recent sold prices of comparable homes in the local area. Make it fair and reasonable.
2. Consider what the seller wants. Remember they are just trying to get as much as possible. You would too. It is a great house otherwise you would not want it. They are not your enemy, just realize there might be solid reasons why they can't budge on certain issues. ie. move out date because they have no family here and their house will not be ready to move into. Try to learn what is the sticky points. Be prepared to back off of them. Knowing what's most important to the person on the other side of the negotiating table can help you avoid pushing too hard on hot or sensitive issues. For example, a seller who won't budge on the sales price, might be willing to pay closing costs or make repairs to the home, while a buyer with an urgent move-in date might be willing to pay a higher portion of the transaction costs or forgo some major repairs.
3. Compromise, compromise. The goal is for you to get the house at a fair price. You and the seller both can get close to what you want, but you are not going to get everything. It means both sides will have to give some and takee some. Rather than approaching negotiations from an adversarial winner-take-all perspective, focus on your top priorities and don't let your emotions overrule your better judgment.
4. Meet in the middle. Can't decide who will pay for the home warranty? Can't agree on a closing date? Arguing over little repairs under a $100? Splitting the difference usually makes everybody happy because the other person is giving in. It is a very successful negotiation strategy. Pay half the fee. Split the difference of move in days. Agree to fix some of the repairs yourself..
5. Resolve the price first and work out the little details. Get a commitment on the price. If the buyers and sellers can come to an agreement on the price or certain parts of the purchase agreement. Then the realtors can work thruogh the little items. Have you realtor ask what is the sticking points.This technique allows both sides to recognize and solidify basic areas of agreement, then move ahead toward a fair compromise on other terms and conditions. By your agent summarizing the points of agreement and working out the little points helps get the deal done.
6. Don't be afraid of asking for advice. Ask you realtor what they thing but remember you are the final decision maker. It's your house, ultimately it is your decision.
7. The bottom line is working it out. Be consistent in what you want. Don't add more things that you want in the middle of negotiations. Don't let little items kill the deal.
By getting the signed contract to your Wayne County home, Oakland county home, or Livingston county home you will have completed one of the major steps in buying a home. Congratulations.
Russ Ravary
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