It is said that in real estate, negotiation is a subtle art. A negotiator who is skill can satisfy all parties involved, though, by finding some common ground. On the other side of that coin, when you use the wrong type of tactics in a negotiation, you can quickly sink a good deal. Below are some tactics that buyers and their real estate professionals should not use when negotiating:
- Constantly asking for more from the seller: many times, the buyer will ask the seller to throw in different add-ons not originally listed in the listing, such as appliances or furniture. This can make you seem greedy and cause the seller to begin resenting you.
- Lowball offers: if you try to make an offer way below the market value, you can damage your credibility as a buyer. It can also be an insult to the seller. Before the house is listed, the seller has a price range in mind they are willing to consider. If your offer isn’t within that range, they likely won’t even consider your offer.
- Negotiating in increments: during negotiations, don’t go back to the seller with an increase of less than $1000. It can become rather tiresome going back and forth and may cause the seller to investigate other offers besides yours.
- Being nitpicky after the inspection: of course, if major issues show up in the inspection, they should be dealt with by the seller or considered in the final sale price. If you begin insisting that the seller lower the price for all the minor repairs, though, the negotiations may be left in a stalemate.
- An attitude of “take it or leave it”: if you are putting in your initial offer, don’t draw a line in the sand. Otherwise, the seller may become defensive and go with a different offer since you are not willing to budge. Even if you won’t consider another offer, don’t tell the seller.
If you are looking to purchase a home, avoid the above negotiation tactics. Lean on your real estate professional to help you find and purchase the property you desire.