Buying Real Estate – The Negotiation Process

You’ve looked and looked and have finally found a home that meets all your needs. Just when you thought it was never going to happen, you find yourself staring down the barrel of your real estate agent’s pen, while they anxiously await your terms. Here are a few things to consider when jumping into the choppy waters of real estate negotiation.

1. Enlist the services of a real estate agent (if you haven’t been smart enough to do so already) Agents have been receiving a tremendous amount of slack over the commissions they are paid, but their advice and direction can be invaluable! They have access to information to help you determine fair market value. They have access to information regarding the community the home is located in. They have relationships with a host of other professionals whose services you are going to require in order to close your deal. These are all things that every serious homebuyer will have to consider, with or without the help of an agent. Why would you go to the bargining table without your interests being fairly represented?

2. LISTEN to your real estate agent! Let them prove their worth by giving them the opportunity to show you what they know and do their job. Why would you argue a property’s value with someone whose job it is to determine value? A good real estate agent will provide you with the same information they have access to in order for you to arrive at a reasonable starting point in your negotiation process.

3. Who is on the other end of the deal? Are you dealing with real, live homeowners or has the property been taken back by the bank? You must consider the environment that you are stepping into. There’s a good chance if you lowball the owner of a family home, you might just offend them to the point of refusing to consider anything you bring to the table. A bank or organization, on the other hand, is more apt to keep it to business and simply come back to you with terms that would be acceptable. Think about this…really think about it. Do you want to risk losing the perfect home simply because you were looking for something for nothing? I’ve seen it happen…it’s far from a good place to be.

4. Be prepared for a counter offer. Just like a homebuyer who devalues property to meet their budget, a homeowner usually suffers from a similar condition in the reverse. Ideally, there is a realtor involved to help the seller come to terms with a sincere and fair counter. This is where, as a buyer, you will require patience. Don’t get caught up in delays, or stressed to the point you can’t think. A deep breath and count to three can do wonders when you have folks on the other end of the deal who weren’t really expecting someone to come along and call their bluff.

Bottom line… emotions are a funny thing, and people can be even worse. When the negotiation process begins, the most important thing to remember is to keep a level head…with or without the help of a real estate agent.

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