For example, if a buyer knows a seller is in foreclosure and must sell before losing the property, the buyer has the upper hand. He knows the seller is under a time constraint and will make a low offer or stall until the last minute. Sellers who are behind on mortgage payments, recently retired, or are under contract for another home are also candidates for high- pressure tactics. Buyers will ask why you are moving and where you want to move to. Any information you give may be used to make their offer less attractive than you want. 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 time spent in negotiating the sale, the more likely they will get the price they want. However, during a sellers' market, "you snooze, you lose." Buyers will invest time with you to create a relationship and build trust. Some even write letters about how much they love your home and plan to stay there for many years. I know of a seller who received a heart-felt letter that sealed the deal, then after closing, the new owners flipped the house within a few months. It is your decision when to sell your house and to whom. In one case, the seller saw the buyers had the same breed of dog he had and signed the contract.
KNOWLEDGE IS POWER
Information is the key to real estate negotiations. The more information the buyer can glean from you or other sources, the better their position is. The more knowledgeable side will overpower the less informed at the bargaining table.
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