6 Tips to Winning A Negotiation

Negotiating can be a tough obstacle in your home buying process. Never do you want the seller to feel like you’re trying to low ball them. It’s best to negotiate in a way that both sides can walk away feeling happy with. Once you learn how to handle negotiating encounters it gets easier, and you can thrive.

 

When selling your home and you receive such a low an offer that makes your jaw drop, remember to relax and consider all your options. Here are six tips to help you win this negotiation game.

 

  1. Price is right- There is a difference in the price you believe your home is worth vs. the price the market will allow. Look at neighborhood sales in the recent past to give you a more realistic idea.  Be sure to ask your agent about what benchmark is most probably.
  2. Consider the first offer – Generally your first offer is your best one, so pay attention to it. It might appear insulting at first, but usually from then on out these offers tend to get worse.
  3. Think like a salesperson – Before you list your home for sale, establish your BATNA (Best Alternative to a Negotiated Agreement). This is your fallback option in case a no deal happens. This also pushes you into a strong negotiation position. If you do not receive your absolute bottom line, then maybe you will rent it out and stay try in the near future. Or maybe you’ll renovate and stay. Having a BATNA in mind will stop you from receiving a bad deal out of desperation.
  4. Don’t get emotional – IT is vitally important to stay level headed throughout this process. Business is business, and has no room for emotions. Business skill, rational and logical thinking, and negotiation skills are what this is all about. Also ask your agent to find out the buyer’s prequalification amount from the bank, or what the buyer’s desired purchase price is. The more information you have about a buyer’s financial standing, the better you can bargain.
  5. Be realistic – Having a stubborn personality won’t get you very far in negotiating. If you just want to sell, and taking less than your ideal price is better than not selling at all. You must also account for the real cost of not selling. Once the real cost of keeping your home on the market per month, it might put even the lower offers in better perspective.
  6. Embrace creativity – If you and the potential buyers are at a stalemate over price, it might be time to look up your sleeve for different ideas. Looking into the future could help! Maybe a lawnmower, window treatments, and the nice Oriental rug could be thrown in.

These should all be considered, and hope they bring you closer to meeting your goal.

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