Negotiate your best deal
As you return to your vehicle, you feel the stirring deep within you, “This is the home I have been dreaming about… I want to buy it!”
The very next feeling could be described as a tremor of fear, stemming from the next question, “How much should I pay for it?”
For some, the rush of adrenaline is excitement and joy. Some people feed off of the thrill of the negotiation. They love auctions, pawn shops, garage sales, and even the proverbial used car salesman is viewed as a challenger to be defeated, with the single goal – “get the best deal.”
I personally am one of these people. It doesn’t matter whether it is a $10 deal or a $100,000 transaction, the price isn’t the concern. I just want to walk away from a deal with the prideful feeling of, “I got the best deal I was going to be able to negotiate.”
The pressure of an impending negotiation sends others into the panic of fear – fight, flight, or freeze. The wave of questions seems to crash on the rocks, only to have the next wave come bigger and even more daunting. Negotiation can be a dreadful and nauseous task.
Let’s take some of the sting out of the negotiation process by using these reachable strategies.
First, be knowledgeable. Gain as much information as you can to build confidence. This is where the real estate agent can be incredibly helpful. The agent can offer insights about the local and current market conditions. The agent’s job is to guide the client through the process by, knowing the best professionals, identifying the smoothest pathway, avoiding common mistakes, and how to advocate for the client’s best interest.
Learn about the condition of the property. Consider the value of the amenities added and note the potential deficiencies, which will need repaired or removed. Are there other potential buyer’s which make this a competitive offer situation or is the property a good candidate for a below market proposal. Information is easily translated into realistic value.
Second, be reasonable. One of the most common strategies used in the real estate purchase is for the seller to set the price high enough for some “wiggle room”. The expected response is for the buyer to offer low to hopefully negotiate a desired outcome.
The “low-ball offer” is not always the best approach. If the seller quickly accepts your “low-ball offer”, they may be relieved to get rid of the property and you are about to learn why. The “low-ball offer” may also be perceived by the seller that the buyer created a list of problems and deficiencies, used to drive the price downward. Keep in mind, the seller has the highest perception of what the home is worth, overlooking the reality and highlighting the potential.
The seller may become defensive and resistant and stiffen his resolve, rather than giving in and being flexible and cooperative.
The third deliberation is to be creative. True value can be measured in more ways than dollars alone. People can have sentimental values attached to the property. This is where their children were raised, a planted tree can have deep emotional attachments, symbolic colors or shapes may go unnoticed by a fleeting glance. There can be potential value of what it can be as seen by the artistic imagination. Special needs may be driving the decision; can the home be made handicap accessible, is there a safe place for the children to play, is the promise of an unmatched view with wildlife beneficial or detrimental?
Look for alternatives to cash and price by identifying time, influence, and meeting other’s needs to accomplish your own wins.
A healthy negotiation can be a bridge-builder to win-win outcomes. Move away from competitive stances and seek cooperation to negotiate your best deal.
About the author:
Terry W. Petty has a Master of Arts: Negotiation, Conflict Resolution, and Peacebuilding. He is a Certified Professional Mediator and he is a licensed real estate agent with Team Idaho Real Estate, Moscow, ID.