Susan Ormont - RISK VERSUS REWARD: A SIMPLE GUIDE FOR INVESTING IN REAL ESTATE

Your eagerness to please them might be construed as desperation, and their offer of cash, a quick close and no inspection may be a big enough temptations to let you take the buyer's lower offer. Another technique is that buyers can play the waiting game. In real estate, acceptance time can be a powerful tool in price negotiations. From their perspective, the longer the house has been on the market, the more flexible the seller will be. The same applies to negotiations. The more they stretch out the negotiations, the more likely they’ll get the price they want. Why? Buyers want to become friendly, they want to create trust, and they ultimately want your willingness to agree to their terms. Your advantage is that the relationship is a two-way street and they might not want to walk away emptyhanded after gaining your trust. By exercising patience, you can hold your position on terms and price.

Knowledge Is Power

Information is crucial to real estate negotiations. The more information the buyer can glean from you, the more pressure they can exert, and this, of course, goes both ways. Whichever side is more knowledgeable will overpower the less-informed at the bargaining table. Don’t be afraid to answer tough questions. When the buyer asks, they will be looking for direct answers and your reactions to these questions. Any reluctance on your part will show the buyer a lack of confidence. The agent in the middle again avoids this sensitive dialogue. The best way to handle a tough question without giving out too much information is to answer with another question. If they imply your home has been on the market for too long, a simply answer from the agent is — e.g., “My client is in no Hurry”

43

Powered by