Negotiation is a subtle art in real estate, but skilled negotiators can usually find some common ground that satisfies all the parties involved in a transaction. On the other hand, using the wrong negotiation tactics can sink a deal pretty quickly.
Here are some negotiation tactics buyers (and real estate professionals) should avoid:
- Lowball offers: Going far below the market value (or the seller’s asking price) when you make an offer damages your credibility as a buyer and can be insulting to the seller. The seller has a range in mind that they’ll accept, and if you’re not even approaching the low end of that range, they won’t even consider the offer.
- Incremental negotiations: Don’t continue to go back to the seller with small incremental increases in your offer ($1,000 or less). The constant back-and-forth can grow tiresome and lead the seller to consider other opportunities.
- “Take it or leave it”: Try not to draw a line in the sand with your initial offer. The seller can get defensive and consider other offers if you immediately show that you’re unwilling to budge or negotiate. Even if it’s true, don’t make a show of it.
- Nitpicking after inspection: Obviously if inspection reveals a major issue, it should be factored into the final sale price. But insisting on a lower price for every minor repair can put negotiations in a stalemate.
- Asking for more, more, more: Some buyers will request that the sellers throw in add-ons like furniture or appliances that weren’t included in the listing. Try to avoid giving the seller a reason to build up resentment and think that you’re just being greedy.
When you are ready to buy or sell, call Diana Dahlberg, Broker/Owner/Realtor — serving SE Wisconsin Real Estate since 1994 — (262) 657-1171 office — (262) 308-3563 cell/text — [email protected]
