Deal or no deal: The art of negotiating
Buying real estate is serious business, and if we think we’re going to stroll into a negotiation unprepared and get the best deal, we’re fooling ourselves. After all, we’re dealing with professionals here! How do we even know if the offer we’re making is fair? Could we have gotten our dream home for less? Could we have held out for that hot tub we wanted added into the final deal?
Here are a few straightforward tips to help you get ahead when negotiating real estate deals:
Tip #1 – Shut up: Most people talk way too much when they get nervous, and although it’s perfectly reasonable to get sweaty palms when at the negotiating table, nerves are a sign of weakness. Not sure what the other guy will offer you? Be quiet and let them do the talking. Sometimes people are so eager to sell that they’ll take your silence as a lack of interest. They may start dealing the price down before you’ve said a word.
Tip #2 – Know your comps: Do enough research on the area where you’re looking to know what houses are going for, way before you start meeting with representatives to talk price. Have in mind a range of prices per square foot so you don’t waste time with properties that are too far beyond the average on either side.
Tip #3 – Play the dating game: No, we’re not suggesting that you should wine and dine your prospects. Instead, check the listing dates for properties so you can see which ones have been on the market the longest. Chances are these folks are more willing to negotiate than a person who is just putting their house up for sale. Now, just because a property is hanging around doesn’t mean it’s always a good deal. There could be structural issues, or the seller could be out of their mind asking such a high price. On the other hand, sometimes a property just needs some cosmetic work to become a real eye-catcher. Learn to look past ragged lawns, pet smells and peeling paint, as such liabilities could be money in the bank for an industrious buyer.
Tip #4 – Don’t show all your cards: When you walk through a house for the first time, you may already picture yourself lounging in the owner’s Jacuzzi out back, or packing his deep freeze with cases of your favorite frozen pizza. But instead of asking if this or that amenity comes as part of the deal up front, make a list of the things you want, and hold on to a couple until you’re ready to ink the deal. Then, before signing off, bring up your last-minute requests. You may get a nasty look or two, but we’re not going to prom here; we’re doing business!
Finally, recognize the value of having an expert in your corner. Unless you’ve got decades of real estate experience, chances are you’ll be outmatched in sitting down to deal with a seasoned Realtor. The percentage you pay in Realtor commissions can come back to you many times over in the form of a better bottom-line deal for you.