Selling Your Metro Detroit Home - Negotiating

Is there a really a secret to good negotiating? 
There are no two negotiations that are the same.  Every Metro Detroit home buyer and seller react differently.  You never really know how negotiations will turn out until they start.  Learn as much about the seller or the buyer as you can, if you can.  What is their hot button,  is it having to move fast, or is it about the money    Another is to play your cards close to your vest and not reveal too much information to the other party or their agent. Always work toward closing the deal.  Do not throw something new into the negotiations half way through. We have worked through hundreds and hundreds of negotiations.  We are good at what we do and usually get what our clients want and keep the deal together.  

What do you want?
Know what you want.  Do you want the hot tub,  the stove, or swing set in back?  Do you need sellers concessions?  Ask for it up front.  One you start a negotiation you should have EVERYTHING you want in the first offer or counter offer.  Nothing screws up a negotiation on a Northville home like adding something into the negotiations halfway through.  Especially if it is big. 

Where do you start in price when negotiating?
I always say that negotiations end up just about halfway.  If you start $10,000 below price then many times it should (I repeat should) end up being $5000 off list price.  Like I said in the first paragraph.  Personalities do come into play.  A seller may be stuck on getting a certain price or a buyer may be unwilling to pay more than a certain price in their head.  Sometimes we have to work around those dug in barriers.  Sometimes we get past them sometimes we do not.

 
If they give me a offer should I respond?                                                 It is up to you really.  Are you way over priced for the market?  Are homes around you selling for less?  Or is your house in worse condition than recent sold homes in your neighborhood?  Would you sell your house that much lower?  If you really want to move then you may want to counter high and try to negotiate it out.  If the buyer is out of line then you may want to tell the buyer's agent to bring you a reasonable offer to start.  You do not want to lose an offer or a chance to negotiate if you have to or really want to move.

Going backwards in negotiations.
You NEVER, NEVER want to go backwards in a home negotiation.  You cannot just decide halfway through that you want $6000 of seller's concessions.  You can't all of sudden decide that you should have asked for all the appliances.  You absolutely need to decide what you want up front.  When you go backwards in negotiations you make the opposite side think you are not serious.  Our goal is to come closer together each step of negotiations.  Not further apart. 

What is the goal of your Metro Detroit home negotiations? 
It is to buy the house and close on it!  Yes you want the best possible terms.   A low-ball offer is a term used to describe an offer on a house that is substantially less than the asking price. While any offer can be presented, a low-ball offer can sour a prospective sale and discourage the seller from negotiating at all. Unless the house is very overpriced, the offer will probably be rejected. You should always do your homework about comparable prices in the neighborhood before making any offer. It also pays to know something about the seller's motivation. A lower price with a speedy escrow, for example, may motivate a seller who must move, has another house under contract or must sell quickly for other reasons.

Speed in responding to offers and counter offers.
I am going to say this first. You should always take the time you need to make a sound decision on an offer or counter offer. HOWEVER I have found the longer the negotiations take the more likely they are to fall apart. When either side starts thinking about the offer or counter offer for a long time they let emotions get involved. Remember both sides are both trying to get their best deal. Nobody is trying to rip the other off, or be mean. It is a business transaction. Make a decision as soon as possible and move on.   If you can make a decision let your agent know as soon as possible.  The home negotiations will go more smoothly.