5 Negotiating Tactics that Kill a Sale

Negotiation is a subtle art in real estate, but skilled negotiators can usually find some common ground that satisfies all parties. On the other hand, using the wrong negotiation tactics can sink a deal pretty quickly. Here are some negotiation tactics buyers (and real estate professionals) should avoid:

  1. Lowball offers: Going far below market value when you make an offer damages your credibility as a buyer and can be insulting to the seller. The seller has a range in mind that they’ll accept, and if you’re not even approaching the low end of that range, they won’t even consider the offer.
  2. Incremental negotiations: Don’t continue to go back to the seller with small increases in your offer ($1,000 or less). The constant back-and-forth can grow tiresome and lead the seller to consider other opportunities.
  3. “Take it or leave it”: Try not to draw a line in the sand with your initial offer. The seller can get defensive and consider other offers if you immediately show that you’re unwilling to budge. Even if it’s true, don’t make a show of it.
  4. Nitpicking after inspection: Obviously if inspection reveals a major issue, it should be factored into the final sale price. But insisting on a lower price for every minor repair can put negotiations in a stalemate.
  5. Asking for more, more, more: Some buyers will request that the sellers throw in add-ons like furniture or appliances that weren’t included in the listing. Try to avoid giving the seller a reason to build up resentment and think that you’re being greedy.

Realtor Mindset

I recently joined a few facebook groups for realtors in hopes of having some nice inspiration and just being around like-minded people online but I was surprised by what I found.

I found constant posts complaining about everything from other agents to their own clients – complaining that the client won’t just hurry and pick a house and is too picky or any number of things that I happen to think are part of the job.

I’ve always believed that people who are unhappy in their job should find a new one because we all deserve to be happy. To me, being an agent means my job is to help you, my client, get what you want. It doesn’t matter if I think it’s a good thing to want or not if you want it I want to help you get it. I’ve seen a few posts in the groups complaining that a buyer wanted to back out of a deal and the agent was asking other agents how to convince them to stick with it and buy the home, how to “get them” to buy it. That is sad to me – I don’t ever want to “get” someone or “convince” them to do something they aren’t in love with the idea of doing.

It has been eye-opening to see what they say when their clients aren’t around, that’s for sure.

5 Criteria for Pricing a Home

When you put your home up for sale, one of the best ways to determine the asking price is to look at comparable sales. There’s rarely a perfect apples-to-apples comparison, so a pricing decision often relies on comparisons to several recent sales in the area. Here are five criteria to look for in a sales comparison.

  1. Location: Homes in the same neighborhood typically follow the same market trends. Comparing your home to another in the same neighborhood is a good start, but comparing it to homes on the same street or block is even better.
  2. Date of sale: It varies by location, but housing markets can see a ton of fluctuation in a short time period. It‘s best to use the most recent sales data available.
  3. Home build: Look for homes with similar architectural styles, numbers of bathrooms and bedrooms, square footage, and other basics.
  4. Features and upgrades: Remodeled bathrooms and kitchens can raise a home’s price, and so can less flashy upgrades like a new roof or HVAC system. Be sure to look for similar bells and whistles.
  5. Sale types: Homes that are sold as short sales or foreclosures are often in distress or sold at a lower price than they’d receive from a more typical sale. These homes are not as useful for comparisons.