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Seller Mistakes – Getting Emotional During Negotiations

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Real Estate Agent with Amanda Davidson Real Estate Group Brokered By Real 0225221517

Seller Mistakes – Getting Emotional During Negotiations

NegotiationsSelling your house is a big decision and one that requires careful planning and attention to detail. You’ve hired the right Realtor®, taken their advice for repairs, updates, and staging. The marketing has driven buyers through the door and you get an offer. It’s not full price but, it’s a solid offer and one that warrants a counter. Now is not the time to start thinking about the kids you’ve raised in this house, the family dinners where you’ve laughed til you cried, or any sentimental memory you have from living in your home. Now is the time to remember you’re selling a house, not your home. Getting emotional during negotiations can kill a deal before it even gets started.

 

I watched a seller shoot themselves in the foot last summer all because of emotion. We received an offer after being on the market just 4 days. It was $5k off list price and asking for $5k in closing assistance. They refused to counter and no matter what I said could ultimately change their minds. Three weeks went by, we received another offer only this time it was $25k off list price. Negotiations began and we ended up ratifying at $15k off list price. Had they kept a level head and countered on the first offer they would have closed at a higher net.

 

At closing they both commented that they had let their memories get in the way and became too emotional. The first offer is often the best that comes in. Even if it's low ball counter back, you never know if a buyer is just testing the waters and you have nothing to lose by countering. It won’t be easy to view your home as a house but, it comes down to maximizing your profits. You can take your memories with you wherever you go.

 

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Amanda Davidson Real Estate Group

 

 

      

 

AMANDA DAVIDSON  
l ASSOCIATE BROKER l  
l AMANDA DAVIDSON REAL ESTATE GROUP BROKERED BY Real

C  703.431.3755   |   O  855.450.0442  |   W  www.amandadavidson.com

A  1765 Greensboro Station Place Suite 900 McLean, Va 22102




Lyn Sims
Schaumburg, IL
Real Estate Broker Retired

It's always the hardest lesson learned when it has to do with the $$ part. Many, many people do this as if that 1st offer was some sort of insult. The one that they had to work with eventually was the insult.

Jan 19, 2014 03:04 AM
Matt Keough, New Castle County, DE
Patterson-Schwartz Real Estate - Wilmington, DE
Matt Keough Agent New Castle County Delaware

You could not be more correct.  I just had a client lose $27,000 because they would not counter, only to have the same buyer come back 5 months later with a low ball offer and ended up accepting $27,000 less then his original offer.

Your first offer is most likely your best!
Thanks!

Jan 19, 2014 09:26 AM
Praful Thakkar
LAER Realty Partners - Burlington, MA
Metro Boston Homes For Sale

Amanda - so true, and that's one of the reasons why sellers should hire a real estate professional.

Jan 19, 2014 02:20 PM
Amanda S. Davidson
Amanda Davidson Real Estate Group Brokered By Real - Alexandria, VA
Alexandria Virginia Homes For Sale

Stacey, I agree. Maintaining a level head is a must on our end. We do this daily and emotion has no business in a transaction when coming from an agent. 

David, I think you're right. 

Hella, "what if" scenarios can often help. Prepares them for what might be on the horizon. 

Zeta, I agree on the first offer usually being the best. 

Lyn, I like the way you put that. Very well said. 

Matt, ouch! Talk about learning a lesson the hard way. 

Praful, very true!

Jan 19, 2014 09:58 PM
Tessa Skeens
Hampton ReDesign, Home Staging and Redesign - Grand Junction, CO
Staging For Realtors, Builders & Investors

Those first offers within days of listing are the toughest. Then it becomes real!

I agree with you 100% Amanda, that the first offer is usually the best. If only sellers could get over the idea that their home's memories are worth more than the house itself. Not to a buyer!

Your memories will always be with you. You don't need a house or a piece of furniture or even a photo to treasure them.

Jan 20, 2014 12:53 AM
Pat Champion
John Roberts Realty - Eustis, FL
Call the "CHAMPION" for all your real estate needs

Great post you are right it is hard for seller's to see this sometimes no matter how hard we advice them they don't want to listen. Thanks for sharing have a great day.

Jan 20, 2014 01:20 AM
Amanda S. Davidson
Amanda Davidson Real Estate Group Brokered By Real - Alexandria, VA
Alexandria Virginia Homes For Sale

Tessa, I completely agree. Memories will go everywhere with you. Buyers could careless about them.

Pat, sometimes they have to learn the hard way. It's hard as an agents seeing that but, it happens. Thank you!

Jan 20, 2014 02:34 AM
Anonymous
Diane Edwards
Amanda, this was point on. I just sold a home that the seller insisting on listing $40K above the comparables in their immediate community. We received 4 offers within the first 2 weeks on the market, all low ball offers. The seller finally agreed to lower the price to the comps and we accepted an offer $3K below list price and well above the low ball offers.
Jan 20, 2014 03:29 AM
#53
Jan Green - Scottsdale, AZ
Value Added Service, 602-620-2699 - Scottsdale, AZ
HomeSmart Elite Group, REALTOR®, EcoBroker, GREEN

Great blog about not being emotional during the sales process. That's why they hire us!

Jan 20, 2014 07:11 AM
Amanda S. Davidson
Amanda Davidson Real Estate Group Brokered By Real - Alexandria, VA
Alexandria Virginia Homes For Sale

Diane, sounds like it all worked out. Well done!

Jan, I agree!

Jan 20, 2014 08:06 AM
Georgie Hunter R(S) 58089
Hawai'i Life Real Estate Brokers - Haiku, HI
Maui Real Estate sales and lifestyle info

It's so hard NOT to let emotions get in the way, for buyers and sellers.  That's where we have to step in and remind them to keep their eyes on the prize.  

Jan 20, 2014 08:34 AM
Bill Morrow
Keller Williams of Central PA - Mechanicsburg, PA
Bill Morrow, Associate Broker

Unfortunately this happens more often than we would like to admit. We must be diligent in educating our clients as to what to expect when those offers are made.  It is important to let them know it is a business transaction.  When you put that sign in the yard, the property becomes a house and it is no longer a "home".

Jan 20, 2014 08:57 AM
Sharon Sanchez
Ace Home Realty - Carson, CA
Your Number "1" Source For Real Estate.

Sellers get emotional a lot.  Unfortunately their memories cloud their thinking. 

Jan 20, 2014 11:46 AM
Amanda S. Davidson
Amanda Davidson Real Estate Group Brokered By Real - Alexandria, VA
Alexandria Virginia Homes For Sale

Georgina, very well said!

Bill, I think the house vs. home point really drives things home. From a sellers eyes it makes a big difference in how you are looking at the sale.

Sharon, very true.

Jan 20, 2014 09:31 PM
Abby Selman
RE/MAX Suburban South - Midlothian, TX
Abby Selman

The difficult part is trying to be sensative to them but at the same time giving them hard advice that you know will benefit the But alas, that is what we strive to do! 

Jan 21, 2014 01:03 AM
Shanna Hall
Real Estate Solutions - Kirkwood, MO
I love selling houses!!!St. Louis, MO 314-703-1311

I always try to impress on my sellers that the first offer is most likely the best offer you are going to get- unless of course- it is a completely off offer...

Jan 21, 2014 01:14 AM
Gene Riemenschneider
Home Point Real Estate - Brentwood, CA
Turning Houses into Homes

It never hurts to counter, especially if you do not have other offers to look at.

Jan 21, 2014 03:00 AM
Amanda S. Davidson
Amanda Davidson Real Estate Group Brokered By Real - Alexandria, VA
Alexandria Virginia Homes For Sale

Abby, that's very true. It's a fine line to walk!

Shanna, I think you're right in doing that. Some are just crazy low but, most of the time first is the best.

Gene, I agree!

Jan 21, 2014 03:23 AM
Greg Mona
West USA Realty - Scottsdale, AZ
Professional Real Estate Representation for YOU!

Amanda - I'm sure we all have our stories to tell about our emotional buyers, but I liked the way you encapsulated this in your post.  As many others have said, the first offer quite often is the best one in the overall net scheme of things. Great post!

Jan 22, 2014 08:26 AM
Amanda S. Davidson
Amanda Davidson Real Estate Group Brokered By Real - Alexandria, VA
Alexandria Virginia Homes For Sale

Thank you so much Greg!

Jan 22, 2014 10:04 PM