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Home Price Negotiation-Reaching a Fair Price

By
Real Estate Agent

For both buyers and sellers, the home price negotiation process can be an emotionally draining element of securing the deal. Nonetheless, it is still a crucial stage in which pre-conceived ideas and objectives can be realized through the use of pragmatic negotiation strategies. Home price negotiation does not have to be overly complex. Here, we’ll outline some negotiating tips that both buyers and sellers can use to set the foundation for meeting their pricing objectives.

Before entering the negotiation process, buyers and sellers must determine their number one objective. Objectives might include: selling or buying at a set price, ensuring the deal is closed by a certain date due to work of family obligations, or retaining a strong relationship with the selling/buying party to ensure any post-closing issues can be resolved amicably. By deciding on their real estate deal objectives before they enter the negotiation process, buyers and sellers can move forward with a tangible goal foremost in their thoughts.

Leverage is critical to the successful completion of any property pricing negotiation. Buyers and sellers must consider elements such as the overall market conditions, the other party’s level of urgency and the number of interested buyers for the property when considering their leverage. For example, buyers who know that they are the only ones to bid on a home have strong leverage when it comes to deciding their price-point. The more leverage achieved by the buyer/seller before negotiation begins, the greater the chances they have of achieving their set objectives.

By reviewing the other party’s position in the negotiation, buyers and sellers can quickly come to an effective agreement. However, negotiations can often become fractious due to the emotions and large sums of money involved. It’s important to maintain a sense of calm understanding throughout the negotiation process and to ensure that any pricing parameters mentioned are tied to tangible data from within the marketplace. By committing to proactive negotiation and reviewing the other party’s stance carefully, buyers and sellers can quickly come to an amicable agreement.

Successful negotiations take time and require the full commitment of both parties. It’s important to make the real estate agent a point-person within the negotiation process, and to ensure that your buying and selling objectives are a foremost consideration throughout.

Nina Hollander, Broker
Coldwell Banker Realty - Charlotte, NC
Your Greater Charlotte Realtor

Sam, I'm always reminding my clients that the mark of a successful negotiation is that everyone walked away from the table feeling like a winner.

Dec 17, 2014 08:25 PM
Sam Marji
Mississauga, ON

I totally agree Nina. Thanks for the comment

Dec 17, 2014 08:28 PM
Adele Galus
AMG Executive Realty - Roseville, CA

In good negotiation you always need to leave something on the table in case you need to go back for more.

Jan 19, 2015 02:54 AM