For the Sake of Negotiating... Oh How Much Fun It Is to Ride

Loreena, some buyers are just really focused on the price. We just have to prepare them before going into negotiations that this might happen and they'll need to decide to walk away. Playing games in a serious situation is never good. Thanks for the post!

Loreena, I'm from the old school where successful negotiations means a win-win. Some people think they don't win unless they come out ahead and get one over on the other. Negotiating is good, haggling is not.

I can be simply amazing how short sighted some home buyers are.  I ask buyers how upset they would be if they lost the home to another buyer over $2,000?  Most of the time, they say very upset and then it's usually pretty easy to convince them in the error of their thinking.  Sorry you're dealing with this right now.  Fortunatly I haven't had this problem pop up in quite a while.

Loreena - in this economy I think there will be more haggling and penny pinching than ever before. 

It's good that there are great agents like you out there helping to educate others in local markets that often times it's a waste of time and energy.  Buyers also have a big concern that something better might come along and at a better price and therefore have a touch time committing and taking the plunge. 

They need YOU to show them the way and the ropes.  Great to know that there are people like you out there willing to take the time to educate them and then help them through the home buying and home selling process. 

Keep up the great work, I'm sure your clients and those about to be your clients really appreciate it!

As Barbara points out..there are some lesson in life that come with a premium...

buying a home definitely isnt easy...so many people dont realize this! They definitely dont want to mess around in the upcoming spring market.

When I encounter such buyers, I don't insist the 1st time.  Once they lose out on the house, which they pretended wasn't of so much interest initially, they then frantically beg me to change the outcome because they really, really want it.

The 2nd time around, they are usually on board with my advice, if not, I just suggest we part ways.  My last buyers that did just that, have missed out on 3 more homes since November, with their 3rd agent. 

Some people never learn.....others do.

Loreena, buyers often lose the first house they want because they are listening to everyone but their agent. The second house, the tend to listen to their agent. (Or, as Anthony says, find another agent.)

Loreena...it is so true.  Usually I tell them to focus on the monthly payment - a couple of thousand over the course of a 30 year loan is not that much more per month.  Of course, if the Seller is refusing to budge at all & the buyer has come up a great deal, buyers will sometimes dig in their heels.

A very hard lesson to learn.  I agree with what Christine said above.  HOpe you are doin gwell!

Hi Loreena,  I suspect that for many the idea of haggling is a little bit like " beauty ".  It is in the eye of the beholder and varies from case to case.  What is haggling to me may be risky and annoying to you.  A smart buyer/seller knows how to stay focused on the big issues.

The $2,000 in a $500K transaction borderlines on craziness, but never but craziness past people Loreena, as they will do it. Some people just get stubborn.

its just a personality thing that you cant control

I think buyers and sellers start to take negotiaions personally as it gets down to the wire. Their pride often gets in the way of good business sense. It's in all of us, but we see it more often in our line of work.

My rule of thumb with buyers is that they shouldn't waste time when the offer and asking price are within 1% of each other.  During negotiations, if we're within 1%, it's time to stop haggling and just get it done.

Loreena,

The low interest rates eradicate any haggling over a few thousand dollars.  We agree with this assessment... g

This is so true, it amounts to less than $25/mo in the loan! People HAVE to win though!

I just had a listing agent contact me today because her seller backed out of the contract with the other buyer. She was calling to see if we wanted back in the picture. My buyers didn't submit their offer when they found out it was multiple offers to deal with.  The buyers asked for 10 too many things, and now the seller wants to play with someone else.

Loreena, too many buyers are reading the doom and gloom reports in the paper, then they get the old shockerooo!

I have been on both sides of this issue.  For many, it is the thrill of the 'win.' I try to explain in a true negotiation both parties must feel like they 'won.'  Too often the competitive nature of the clients that I work with comes out and they cannot get their heads around how very little that $2,000 (or $500 or $5,000) means over the course of 30 years! I have had a number of clients miss out on the right house because they were stubborn.