We at the first meeting with sellers need to address offers and discuss the sale as being only business. Establishing that up front sometimes helps.
In recent weeks I have had the pleasure of working with sellers who seem to think that the list price is the starting point of the negotiation and that the price can only go up from there.
It's not that the listing agents didn't try to manage their clients' expectations, but in these two cases, the sellers had been reading and hearing in the media that multiple offers were back and that buyers were more than willing to pay well over the list price. There was also the "good friend" who "knows a lot about real estate". Always a helpful addition to the mix. However, in both cases there were no multiple offers and the price did not get to the seller's list price.
Don't Let Your Sellers Shut Down
What was so interesting about these two offers was that the sellers thought the buyer was being unreasonable by offering less than the list price and asking for closing assistance. As a result, the seller felt that the buyer wasn't serious about buying their home. In one case, after the second round of counteroffers, the seller simply shut down. They told their agent that they felt the buyers "just want the last word" and they didn't want to work with someone like that. They then instructed their agent to withdraw their counteroffer completely.
The Sellers Offering Price
What sellers fail to understand, and perhaps we as real estate agents should always remind them, is that the list price is simply their "offer"...they are offering to sell their property for "x". The buyer then comes along and makes a "counteroffer". Yet somehow, the seller feels personally assaulted with a less than list price offer. We need to remind sellers that this isn't personal, it's called negotiation. What's insulting is NO offer. The seller is trying to get the highest price with the best terms and conditions and the buyer is trying to get the lowest price with the best terms and conditions.
Everyone Can Win
We all want what we want, but in the end we usually have to meet somewhere in the middle. That goes for both buyers and sellers. Negotiation is not personal and it is not meant for one party to feel bad. Negotiation is about compromise, with both parties feeling as though they've won.
- Don't Be So Quick To Give Away Your Money
- If You're Selling Real Estate You Need Training
- We Are Only The Middle Men - And Women
- Buyers and Sellers Will Resolve Their Issues
- In Real Estate, Who Sets The Price?
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