Negotiating The Small Stuff

Attacking the process of negotiating is not dissimilar to any series of tasks in real estate that a Realtor has on any given day.  It’s prudent to address the small stuff in the beginning.  Once you get the less significant things resolved, your mind is clear to tackle the larger issues.

A Misstep

It’s common, and understandable, to have a mindset that the main issue in negotiating is always price, thus that should be addressed first.  Unfortunately, that can lead to a variety of missteps leaving other points of interest unresolved.

• Is there a mortgage contingency?
• If so is the offer accompanied by a pre-approval?
• Is the transaction an “as is” sale?
• Is the closing date of significance?
• How comprehensive is the building inspection?
• Are the dates for the inspection and signing of contracts clearly defined?
• Are the exclusions to the transaction clearly understood by both parties?

It seems fairly obvious that these are issues that always need to be addressed in any sale of residential real estate.  However, you may be surprised at how often one or the other is neglected altogether until after there is an agreed upon price.  The consequences are at times enormous.  So much energy and emotion is expended on price, with a negotiating process that is often frustrating to both parties, that the resulting animosity renders the buyer and seller ill equipped to withstand one more disagreement.  A minor issue, that if dealt with up front would have long been forgotten, can easily turn into a deal breaker.

Awareness

A skilled negotiator is well aware that, all things being equal, they generally hold the most leverage at the beginning of negotiations.  That’s usually when there’s the greatest amount of good will and flexibility among the parties involved.  To wait on the less significant issues until after price is agreed upon is a mistake that you’ll only make once.

Negotiate the small stuff up front and you’ll attend more closings.

What’s your perspective?

Can you recall negotiations that should have been simple, but due to disagreement on minor issues that weren’t handled in a timely manner, turned out to be anything but?

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