Is there a secret to good negotiating?

One of the most stressful parts of selling your home is the negotiating stage. When your home is initially put on sale, it is relatively easy for a home seller to relate favorably with potential homebuyers as they show, at first, initial interest. Part of the early stage of home selling is convincing prospective homebuyers that your home would be appropriate to their needs, and this stage requires that the home seller be friendly and open. However, these good relationships that a home seller strikes up with a prospective homebuyer changes completely during negotiation.

Much like any type of negotiating in selling a product, the goal for the buyer and seller is to obtain the most advantageous deal for themselves. Therefore, in real estate negotiating, the goal of the home seller is accumulating the most profit from selling their home. For the homebuyer, the goal of real estate negotiation is to purchase a home for the lowest price possible.

With these two parallel objectives, negotiations can often be difficult and strenuous for both the homebuyer and home seller. Consequently, a common question asked by home sellers is, “Is there a secret to good negotiating?”

While there is not one single concrete bargaining strategy that is guaranteed to tip the result of real estate negotiation in your favor, there are some cardinal rules that will aid anybody in negotiating effectively. The main way to ensure that you will do well in any negotiation is to do your home. In terms of a real estate transaction, it is important for you to have a concrete understanding of the local real estate market conditions and also the value of homes that have sold that are similar to yours. Additionally, it is recommended that you try to learn as much about the buyer as you possibly can, as this knowledge can lead to advantages in negotiation. As they say, knowledge is power, and if you knew that the homebuyer was on a specific timeline to purchase a home, you may be able to exploit that to your advantage.

Conversely, another important negotiating tactic is to reveal as little information about yourself and your real estate intentions to the homebuyer or their agent. If you are currently negotiating with the only prospective homebuyer that you had, you will be able to be exploited by the homebuyer, as they now know about the low demand for your home.

Another important negotiation strategy is to take your time. Although the homebuyer may apply some pressure on you to resolve this sale, it is important that you don’t feel rushed. Rash decisions are often ones that you regret. However, if you believe that you may be unable to follow any of these negotiation tactics, it is then recommended that you hire a real estate agent who specializes in this stage of the home sale.

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