The Perils Of Real Estate Negotiation
Two humans negotiating over anything can be tricky. Combine this truism with the high stakes of real estate and the waters can get murky in a hurry. Let's examine why real estate negotiation can be tough.
1) Real estate transactions are at a stressful time for both parties-- People are more effective negotiating at an "arms length" from the transaction. Such distance provides clarity. In the case of a home deal, the buyer and seller's primary residence is caught in the balance.
2) You may not know who you are REALLY negotiating with-- Just because "Bob and Jill" are the buyers don't mean they are calling the shots. There could (and often is) people behind the scenes that have a lot of influence. And what Bob and Jill respond to may mean nothing to the person behind the scenes (usually a close friend or family member).
3) People don't always negotiate in a rational manner--I have seen sellers destroy deals that would have netted them top dollar. Why did they do it? To cause their soon to be ex spouse grief. Yes, some people are that little...
4) Both buyers and sellers let their ego get in the way-- I had a seller once turn down an offer that was at fair market value. Why? Because the "Smith House" down the street fetched more three years ago and her house was much nicer. After the deal died the house sat on the market for the remainder of the listing. To my knowledge the home never sold.
5) People are influenced by faulty information-- Put another way, folks will lie. Friends and family will brag about the great deal they negotiated on a home, car, boat or similar big ticket item. The buyer or seller will then use this insight to frame their negation. But guess what? Their friend didn't really get that car for 5,000 dollars below invoice.
Expertise in real estate negotiation comes from experience. Frankly most individuals do not engage in enough transactions to develop the needed negotiation skills. At Bayou Properties Realty we represent both buyers and sellers though the process. Need an expereinced Real Estate Agent in Alexandria La? Call Doug Rogers (318) 613-1994 today!