When it comes to real estate negotiations, getting to a fair price and terms for a home can make the most well adjusted individuals act against their own best interests! Depending on the combination of personalities involved, a simple straight forward offer and acceptance can devolve into a gas fire in a paper factory with no escape.
I’m just going to list a few of the ways to lose a deal:
- Take everything personal. If you take the terms of a sale as a personal affront, you are missing the point. Stay focused on the print, the black and white. Do not assign emotional inferences to the information.
- Distort the facts and data to make your case. Both parties to a transaction will be examining the same data and details. There are not two sets of applicable statistics. There are anomalies that you do have to remove, but generally if you reject valid information because it will conflict with your position, then you are missing the point. Misrepresentation is not the same as negotiating.
- Assume the worst intentions. You can’t believe that every comment or thought expressed has a secret meaning behind it. If the other party is using their time to reply to an offer, that’s ok, you can take your time too. It doesn’t have to mean they are shopping the deal, or intentionally causing you discomfort.
- Imagine you against…everybody. You have an ally in the deal. It’s your agent. You have to trust your agent to advocate your wishes. Stay open and honest with your agent so your real desires can be communicated in the most effective way.
- Play games. If you like to play games with people, save it for your next car buy. If you blow it in that scenario you can just go to the next dealership and buy the same car. In real estate, if you start changing terms as a punitive measure for an attitude you perceive (see items 1, 2, 3, and 4) you will just look childish. That is a clear demonstration of ignorance or ego, and neither one is better than the other.
- Be fearful. The worst position to negotiate from is fear. The global economy does not need to align for world peace before you can agree to terms. It is a better position to ‘want the deal’ and to be confident about your walk away point as long as that point isn’t driven by ego.
It’s always exciting to make the deal. It’s always disappointing to lose one. In the short term, real estate will reveal its hand and expose the truth about the final price the seller would take and the final value the buyer couldn’t see or vise versa. Just know where you need to be before getting into negotiations then inch your way to agreement. No games, just good business.