Negotiation is a subtle art in real estate, a skilled negotiator can usually find some common ground that satisfies all parties. 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 totally avoid when purchasing a home:
Lowball offers:
Going far below market value 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 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 & consider other offers if you immediately show that you’re unwilling to budge. Even if it’s true, don’t make it obvious.
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 bring negotiations to a halt.
Asking for more, more, more:
Sometimes buyers request to keep items that the sellers did not include in the listing like furniture, appliances or that ginormous flat screen in the basement. Try to avoid giving the seller a reason to build up resentment and back out.
Make sure when you start searching for a home you first choose an agent that understands what you want. Look for an agent who will negotiate the best deal possible on your behalf.
