I had an interesting conversation recently with one of the Realtors on our team. We discussed the nuances of negotiating, and how differently the negotiating process unfolds depending on with whom you are negotiating. In some instances you feel as if the other person involved is working with you, in some instances against you.
Buyers’ Role
Sellers and buyers of real estate, of course, also play a significant role in the negotiating process. Among other things, negotiations are impacted significantly if the buyer is looking for a home that they love versus looking for “a deal.” Thus it’s an advantage for the listing agent to be able to elucidate the difference. During the course of our discussion, the agent shared with me that she suspected a particular buyer who made an offer on one of her listings was indeed looking for a “deal.” Some indications that this is the case are often the following:
- Buyer holds off making offer in hopes of seller reducing price.
- Buyer attempts to submit offer verbally rather than in writing.
- Buyer has simultaneously made offers on other properties.
- Offer is absent pre-approval letter for the specific house that he or she is offering upon
- Buyer is slow to respond to counter offer from the seller.
- Contingency dates are longer than typical
Huge Contrast
To the sellers’ relief, another offer was presented shortly after the first. The agent with the second offer has been in the business for many years and has a sterling reputation. Her offer was neatly packaged with all terms of the offering spelled out clearly and succinctly. There were no addendum items, no unusual requests and no unreasonable dates. The offer was negtotiated within twenty-four hours and both parties to the transaction felt as though they were dealt with fairly and equitably.
Just A Thought
Most professionals in any field want to be good at what they do. In real estate, that includes the desire to negotiate the best deal for your client. At times, however, we do things that we think are in the best interest of our client when they really aren’t. When it comes to negotiating the price of a home, it often becomes an interesting balancing act. You certainly don’t want to do anything that will jeopardize your clients’ financial resources. If we create an adversarial relationship during the negotiating process, however, we ultimately often do more harm than good.
During the days when I personally listed property, after my initial excitement of hearing that one of my clients had an offer on their home, I knew that the other agent and I had the opportunity to serve our clients best if we worked with one another in a professional manner. “Work with me,” I would often say, “and the rest will take care of itself.”
Would you like to add to the list above?
Have you ever been in negotiations that were dramatically affected one way or another by the strategy employed by your fellow agent?
What role did you play in that scenario? How did you handle the situation?
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