Monday, May 14, 2007

Everybody Wants To Rule The World......

It's easy to assume that negotiating is adversarial. You, the buyer, are on one side -- the side that wants to buy a property for the lowest price possible. The opposition on the other side is the seller who wants to sell for the highest price possible. You're locked in a tug of war to see which side will win.

Let's flip this thinking and instead of a tug-of-war let's look at this as a problem-solving opportunity. Here are several ways that may help you reverse your thinking and see things from the opposite side.

  1. PATIENCE! If you think an asking price is too high to start - wait. The sellers may be testing the waters. This is most likely if the home was purchased in recent years and a profit from the sale is not on the event horizon. The strategy is to make an offer JUST BEFORE the sellers lower their price. If you wait until they lower the price you may end up paying more if other buyers suddenly become interested. How do you know that they are ready to lower their price? Ask your Realtor to speak with their agent to express "interest". Don't be bashful about expressing your interest - you may just receive a call when the sellers want to see an offer from you.
  2. Be reasonable! When you make an initial offer and there is no competition from other buyers your initial price should leave room to move up in price. However, it should not be so low in price that the sellers are insulted and do not respond at all. It also may give the sellers the impression that you can't afford any more than that initial offer and they feel that there is no need for a counter offer. Keep in mind - this initial offer is to start the ball rolling. This is where you want to open up a dialogue and start the problem solving process.
  3. Don't get so caught up in price that you overlook other consensus building opportunities. Brainstorm with your agent other avenues that you may have to accommodate the seller. Yes, I said "accommodate the seller". Do they need to close quickly? If so, they may give more on price if the closing is sooner. If you get close on price, offer to split the difference to seal the deal.

Just remember, there are many ways to look at the process. Price is just one of many motivating factors. EVERYTHING IS NEGOTIABLE! When you enlist the help of a true-blue, professional agent they will be able to help you brainstorm and make your offer the most attractive! A buyer's agent can be an invaluable tool!

Happy Shucking...............

A Walk Through Historic Wake Forest, NC