Negotiating for Real Estate in St. John's, Newfoundland is a skill well worth honing.
Typically Real Estate transactions are formed as binding buy and sell agreements that must be negotiated by at least two parties. A Purchase and Sale agreement is between a specific buyer and seller and as a minimum, lists the terms and conditions of the agreement, the parties involved in the transaction and the planned closing date.
While it is true that some folks would rather not haggle for anything (nice luxury for those who can afford it), negotiating is as important to Real Estate trading as writing the cheque on closing day. But securing an agreement between two competing parties is often not as easy as said, especially if either party has had little or no negotiating experience. But that's OK. We all have to start somewhere.
It should be understood that negotiating with a street vendor while vacationing in Jamaica to secure an acceptable price for a toy clown is inadequate preparation for the rigor of contest over a quarter million dollar home. I am familiar with negotiating with the Jamaicans. Let's just say I found myself pushing it a little too far when my wife announced, with gentle eyes rolling, we were arguing over a quarter. I learned then that you have to know when to accept the final offer, but we'll come to that another day.
There are a few guidelines to bear in mind before beginning the process of negotiating for the dream home that you have just found, already love and now, oh my, must have! Things often move slowly with the home buying process until one experiences the "love at first sight" factor. We will explore these in detail in the coming blogs. Today, let's talk about the basic principal of successful negotiating.
Why Do We Negotiate?
One normally negotiates to acquire something if interest. The home buyer wants the vendor's home to gain a certain utility; a nice place to live, a convenient location, prestige among friends and colleagues, a two car garage, the indulgence of an "ensuite" bath, or if you can believe it, some want a certain proximity to the mother in law. The needs for home grown childcare have a way of taking precedence for some men who overlook the mantra, "Don't by next door to your mother in law"! By the way, in case my own mother is reading this, I would be happy to live next door to mine. She is great! You heard me say that didn't you. Witnesses are always good.
Negotiating is based upon the principal of fair trade. We refer to it as a win/win transaction. Both parties will trade if they believe they are not being pilfered. We cannot offer a ridiculous price to purchase someones home without expecting to encounter a negative response. The more ridiculous the offer, the more emphatic will be the rejection from our trading opponent.
If either buyer or seller comes to the table with only their wish list front and center, giving no thought to the needs and desires of the other, a successful trade will be difficult to achieve. When we think only of our interests there will be failure to understand why the other party doesn't accept our offer, our reasoning or our point of view. I have known a few deals to go south quickly when the vendor was offended by a very low priced offer.
What happens if we try to see things from our opponent's eyes, if we ask ourselves a few questions to help us understand our opponent? Questions such as, what will s/he deem fair and acceptable?
If negotiations are going to succeed they must reflect a deal that allows both parties to win. Trying to negotiate a one sided deal where one party gains at the other one's expense will nearly always meet with unfavourable results. These win/lose deals fail to conclude because they violate the fair trade principal.
If you want to succeed in negotiating, it is important to remember that each party to the negotiations must gain something that they are satisfied to substitute for whatever they are asked to concede. Expectations will vary depending on time, circumstances and the skill of communications.
The first thing to remember though is to think about the other side before you begin. You might be surprised to find something that is important to your opponent that is of very little consequence to your own interests.
___________________________________________________________________
R. Greg Osmond is a Platinum Award winning Realtor serving St. John's and surrounding areas, Newfoundland and Labrador for over 20 years and can be reached at 709-895-2500. Visit www.rgregosmond.comfor further information. Find him on Facebook at R. Greg Osmond.
Comments(4)