Special offer

The Art of Negotiating!

By
Real Estate Agent with Keller Williams Community Partners

10+ years in the industry and I still shake my head when it comes to negotiating a home deal!

I realize that negotiations are different based on buyers market vs sellers market. I have seen both in the Atlanta area, especially after the 2007 market crash.

I bring this up because of a recent negotiations gone bad.

  • Buyer's agent gives us an initial offer $75,000 below asking price
  • Our sellers lower their price by $12,000 in their counteroffer
  • The buyers then inform us, through their agent, that they are not going any higher in their offer.
  • Our sellers, frustrated, come down another $14,000.
  • The buyers do not come up.

 

The reason we are so far off in the home's value is related to interpretation of data and how much the home will appraise. 

 

The scenario is not so important as the way the negotiations took place.

  • Buyers should have told us that this is their offer and they would not be going any higher
  • When the buyers submitted their offer, a justification of their offer (area home values)

Knowing this was their one time offer on the home would have created a different strategy for myself and my sellers. They would have reacted differently to a "take it or leave it" offer. As a result of the buyers strategy our sellers were frustrated and declined to work further with the potential buyers.

Since the breakdown of these negotiations, the buyers have come back multiple times justifying their offer. They have data to back it up (subject to interpretation). However their unwillingness to further negotiate complicates the entire process. They are pushing our sellers to come down an additional $45,000 dollars in their price because they said they should! Needless to say we are at a standstill.

 

Our solution: Negotiate a price for the home, agreeable to both, and have an appraisal contingency in the contract. 

Their solution: Both sides pay for an appraisal. If the buyers like the appraisal they might make an offer!

 

My thoughts:

  • Buyers and sellers are expecting to negotiate. They are expecting to go back and forth about 4 times before reaching an agreement
  • If the initial offer is your only offer that needs to be communicated to the seller.
  • During the negotiating process, if your counteroffer is your final offer that needs to be communicated.
  • If you have data to justify your offer pass it along with the offer. 
  • Both sides expect to "win" something. Throwing in the refrigerator, changing the closing date, closing cost,  are some items that are part of negotiations.

Bottom line to my fellow realtors:

  • Keep the negotiations civil!
  • Do not tell me that my client's offer is an insult!
  • Do not call me and proceed to lecture me about my offer!
  • Be professional!

If you are looking for homes in North Atlanta, Lake Lanier, or the North Georgia area, give us a call. We are the Wells Team of Keller Williams Community Partners!

www.randywellsteam.com

 

Comments (1)

Anonymous
Tara

A good agent knows how important it is to communicate with the other agent. In order to help both sides of the deal. Also to set both buyer and seller with realistic expectations of the deal. Too bad they do not teach this in a class!

Jun 12, 2015 12:33 AM
#1