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Most home buyers and home sellers want
to arrive at a win-win agreement, but that's not to say either side would regret
getting a bigger "win" than the other. Successful negotiating is more than a
matter of luck or natural talent. It also encompasses the learned ability to use
certain skills and techniques to bring about those coveted win-win results. Here
are six tips and suggestions to turn negotiation into agreement:
1. Start with a fair price and a fair
offer. There's no question that significantly overpricing your home will
turn off potential buyers. Likewise, making an offer that's far lower than the
asking price is practically guaranteed to alienate the sellers. Asking and
offering prices should be based on recent sales prices of comparable
homes.
2. Respect the other side's
priorities. Knowing what's most important to the person on the other side of
the negotiating table can help you avoid pushing too hard on hot or sensitive
issues. For example, a seller who won't budge on the sales price, might be
willing to pay more of the transaction costs or make more repairs to the home,
while a buyer with an urgent move-in date might be willing to pay a higher
portion of the transaction costs or forgo some major repairs.
3. Be prepared to compromise.
"Win-win" doesn't mean both the buyer and the seller will get everything
they want. It means both sides will win some and give some. Rather than
approaching negotiations from an adversarial winner-take-all perspective, focus
on your top priorities and don't let your emotions overrule your better
judgment.
4. Meet in the middle. Can't
decide who will pay the recording fee? Can't agree on a close-of-escrow date?
Arguing over cosmetic repairs? Splitting the difference is a time-honored and
often successful negotiation strategy. Pay half the fee. Count off half the
days. Fix half the blemishes.
5. Leave it aside. Politicians
and corporate executives are famous for their "for future discussion"
agreements. If you have a major sticking point that's not material to the
overall contract (e.g., the purchase of furniture or fixtures), finish the main
agreement, then resolve the other difficulties in a side agreement or amendment.
This technique allows both sides to recognize and solidify basic areas of
agreement, then move ahead toward a fair compromise on other terms and
conditions. Summarizing the points of agreement in writing is another helpful
strategy.
6. Ask for advice. Successful
realtors tend to be experienced negotiators. They've seen what works and what
doesn't in countless real estate transactions, and they've established a
track-record of bringing buyers and sellers together. Consult your realtor about
negotiating strategies, win-win compromises and creative
alternatives.
[ ..More About San Diego Real Estate Negotiation ]
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