No matter how low of an offer you put in for a home, it almost never fails that at some point you get buyer's remorse wondering if you could have purchased the property for even less. Some realtors might tell you that the fair market value is what you did pay, but we all know that sometimes buyers can, and do, over pay. Often that's because they are thinking with their emotions rather than with their head. On the other hand, did you offer too little that you might lose the deal?One important fact that many are either unaware of, or tend to forget, is that negotiations are a matter of “give and take.” Both parties to the negotiations must feel like they came away with a “win” or there is no reason for them to make the deal. Furthermore, a key element to the negotiation process, concessions, is either often neglected, unappreciated or un-reciprocated.
Four Strategies to Help Avoid This from Occurring:
1.
Point out each concession at the time it
is offered.
2.
Let the other party know that what you are giving up has value
and is costly to you.
3.
Emphasize the benefits of the concessions to the other party.
4.
Don’t give up on your original demands too hastily, they just
might be accepted if you maintain your resolve.
Also Imperative:
1.
Define and Expect Reciprocity – diplomatically insist upon it.
2.
Make Contingent Concessions – State that the concession is being
offered only if the other party agrees to make a specified concession in
return, i.e. buyer removes mortgage commitment in exchange for a more
favorable due diligence date.
3.
Make Concessions In Installments – The same concession will be
received more favorably if it is offered in installments. In other words,
don’t request or offer everything at once and you’ll have a better chance of an
agreement.
Call me if I can help. I go to work for Buyers.
Ken Fernandez
ABR Broker
828-743-9900 (office)
828-507-3156 (cell)
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