Negotiating a deal can be really tough, because it requires the ability to read people. Here are some tips for you to use when it comes to negotiating the sale or purchase of a home. The first mistake is not doing your research. Your research should involve figuring out how long a listing has been in the MLS, as well as the current temperature of the surrounding market.
This is where your realtor comes in; if they are a good realtor, they should know many of these facts. However, with the availability of this type of information readily available online, there is no reason that you shouldn’t be looking up all of the information as well and then collaborating with your realtor on the research. Read: Top 10 Tips When Negotiating.
The next mistake is not having all of the information. This is probably the worst mistake you can make in any negotiation whether it is for a dress at a retail store, purchasing a car, and playing poker.
A good rule of thumb not just in buying a home, but in every aspect of your daily life, divulge as little about yourself as possible. There is an excellent quote that says, “Never miss a good chance to shut up.” For example, if you want to pay all-cash for the house, the sellers don’t need to know this. If they know, they will keep firm on the asking price, as they know you can more than well afford it. For further reading, see: 12 Negotiating Tips Every Homebuyer Should Know.
The next mistake is not realizing that sellers are people. Each person is different and unique; all of us have our own set of fears. You must question what the current pressures on the seller is regarding this house. Has it been on the market for a year?
Have the other homes in the neighborhood also been slow to sell? Perhaps the seller is undergoing bankruptcy or has already purchased another house before selling this one. The sellers realtor could be bluffing, when in reality, the sellers reek of desperation. If you don’t sense this, you will end up feeling the need to pay more, and negotiate less, in fear that you will lose the house. When really, they’re afraid they’re going to lose you.
Another mistake is keeping all your eggs in one basket, and telling yourself that you don’t want any other house unless you can have this exact one. The seller automatically wins when you’ve decided to will take their home no matter what the cost. You should be willing to walk away, and this will be easier for you if you actually are. For further reading on this subject, see: 7 Must-Know Negotiation Tips.