Negotiating in good faith stories of success

By
Real Estate Agent with YourStories Realty Group MA# 9517963

Negotiating in good faith stories of success come down to a sense on both sides that a win-win situation means everyone gives a little to make the whole a successful transaction.  There are some guidelines, rules some might say, for this process.  Low ball offers are rarely in the interest of the Buyer because they can just start the negotiating process off on a bad foot with the Seller. A Seller should realize that a low ball offer is not an insult, just a valuation. The Seller should counter with what they believe is the correct valuation for sale among these parties.  If there is no meeting of the minds at this level it will not go forward.

Getting a counter offer is always the first step in a good faith negotiation.  The Seller might say the full priced offer is the first step but this is a two sided negotiation and there needs to be cooperation and collaboration. The Seller wants the most and the Buyer wants it for the least amount they can. That is the unspoken understanding.  No house is perfect, even the brand new ones. All houses need ongoing maintenance and so some understanding of the price in that moment, in this market needs to be understood and shared.

Any negotiation between the two parties between Offer and Closing need to understand that the Buyer will reap the equity rewards of any upgrades to the house negotiated as part of the final price. Because the Buyer reaps the full 100% benefits of the upgrades it is expected that the Seller will pay less than half for those upgrades with one third of the cost of all the upgrades as the usual good faith negotiation. Realizing that both sides need to feel as though there is good faith in negotiating there needs to be compromise and understanding between the parties and without that  it nullifies negotiating in good faith stories of success

Posted by

Larry Lawfer, Realtor®YourStories Realty, It's all about you,

Larry Lawfer

Partner

Realtor®, Director of Marketing

YourStories Realty Group powered by Castles Unlimited®

837 Beacon St

Newton, MA 02459

larry@yourstoriesrealty.com, 617-774-8292

Comments (4)

Dena Smith
DSmith Realtors - Irving, TX

Great concepts that work, but only when the partes are able to extract their emotions from the process. All too often buyers & sellers let their emotions govern their decisions and in these cases the best we can offer them is a calm voice of reason.

Oct 29, 2018 06:16 AM
Grant Schneider
Performance Development Strategies - Armonk, NY
Your Coach Helping You Create Successful Outcomes

Good morning Larry - the meeting of the minds and negotiation is all part of the process.  Give and get and come to an agreement.

Oct 29, 2018 06:23 AM
Lise Howe
Keller Williams Capital Properties - Washington, DC
Assoc. Broker in DC, MD, VA and attorney in DC

An interesting point about the buyer reaping 100% of the benefits of any enhancements 

Oct 29, 2018 06:59 AM
Larry Lawfer
YourStories Realty Group - Newton, MA
"I listen for a living." It's all about you.

Dena Smith Thanks for the comment. Emotions are certainly a part of this process and emotions are a double edge sword.

 

Grant Schneider I always say a win-win negotiation is when both sides give up a little to get to it.

 

Lise Howe Yes the Seller reaps non of the last minute negotiated reduction in price, the Buyer does.  My rule is my seller's should not have more than 30% of that cost.

Oct 30, 2018 01:54 PM