In real estate negotiation, the number is only part of the story.
I've been involved in enough real estate negotiations to know one thing:
How you make the request can be just as important as the request itself.
Let's say a buyer asks for a $10,000 concession after the inspection.
One way to handle it is to send an email that says:
“Buyer is requesting a $10,000 concession.”
Okay.
But why $10,000?
What did the inspection find?
What needs to be repaired?
What will it cost?
Where did that number come from?
The seller doesn't know.
So now you've created a negotiation around a number instead of the facts.
There's a better way.
Make the case.
Why Does the “Why” Matter in a Real Estate Negotiation?
Let's say the inspection finds roof issues, wood rot, electrical problems and a chimney concern.
The buyer asks for $10,000.
If all the seller hears is:
“The buyer wants $10,000.”
The seller is probably going to think:
“Why should I give them $10,000?”
That's a reasonable question.
Now change the conversation.
Send the relevant inspection pages.
Show the pictures.
Provide repair estimates when they're available.
Explain which items are driving the request and how you arrived at the $10,000.
Now the seller isn't just looking at a number.
They're looking at the reason behind the number.
Same $10,000.
Very different negotiation.
Show Me. Don't Just Tell Me.
Real estate is full of opinions.
“The house has a lot of problems.”
That's an opinion.
“The inspection identified these specific issues. Here are the photos and estimates.”
That's information.
There's a big difference.
And because so much negotiation happens through email and text, we can use that to our advantage.
If I'm representing the buyer, I want to give the listing agent something they can actually show their seller.
Here are the inspection findings.
Here are the pictures.
Here are the estimates.
Here are the items that matter.
And here's how we arrived at $10,000.
I don't want the seller hearing:
“Sam's buyer wants another $10,000.”
I want them seeing:
“Here's why they're asking for $10,000.”
That's a much better conversation.
And it makes the listing agent's job easier because I've given them something they can take directly to their client.
What Should a Seller Do When a Buyer Asks for $10,000?
Now flip it around.
If I'm representing the seller and somebody asks my client for $10,000, I don't necessarily want to immediately say yes, no or split the difference.
First question:
“What's the $10,000 based on?”
Then let's look at it.
Maybe the buyer has a very good case.
Maybe they don't.
Maybe part of the request is justified and part of it isn't.
That's negotiation.
And whatever we decide, I want to make the case for our answer too.
Maybe the seller has already spent substantial money getting the property ready.
Maybe the home was priced aggressively from the beginning.
Maybe some of these issues were already reflected in the price.
Maybe the buyer's $10,000 request is legitimate, but after looking at everything, the seller believes $5,000 is appropriate.
Don't just send:
“Seller will give $5,000.”
Explain why.
The buyer may still want more.
That's okay.
At least now we're negotiating based on something.
Should You Automatically Split the Difference?
Absolutely not.
Buyer asks for $10,000.
Seller offers $5,000.
Why?
Because it's halfway?
The middle isn't automatically the right answer.
If the buyer has $10,000 worth of legitimate issues supported by documentation, $5,000 may not make sense.
On the other hand, if the evidence supports $3,000 worth of repairs, giving $5,000 just because it's halfway doesn't necessarily make sense either.
The facts should drive the negotiation.
That's what I mean when I say negotiate on the merits.
Don't Negotiate Based on How Badly You Need the Deal
This is another part of negotiation that doesn't get talked about enough.
Transaction counts are down.
Agents are hungry for transactions.
I understand that.
But sometimes an agent can become so anxious to keep a transaction together that they're too quick to encourage their client to agree.
That's a mistake.
If your client is being asked to give up another $10,000, that decision shouldn't be based on whether you need another closing this month.
That's not the client's problem.
Look at the facts.
Look at the property.
Look at the inspection.
Look at the contract.
Look at the market.
Look at the alternatives.
And look at the consequences if the transaction doesn't close.
Then explain all of that to your client.
That's our job.
So What Is the Agent's Job?
Our job isn't to make the decision for the client.
Our job is to give the client the information they need to make a good decision.
Understand the leverage.
Understand the risks.
Understand the alternatives.
Negotiate from the strongest reasonable position you can build.
I like to describe it this way:
Our job is to stack the deck in our client's favor.
Then let the client decide.
Because at the end of the day:
It's their house.
It's their money.
It's their decision.
Does Winning Mean Getting Everything You Asked For?
No.
A good negotiation doesn't mean one side gets everything and the other side loses.
Maybe the buyer asks for $10,000 and gets $7,000.
Maybe the seller agrees to make two repairs but not the third.
Maybe they agree on a smaller concession.
Maybe they find another solution neither side considered at the beginning.
The objective isn't to win every point.
The objective is to reach the best reasonable outcome for your client.
Sometimes that means pushing.
Sometimes it means compromising.
And sometimes it means knowing when not to compromise.
Don't Just Give Them a Number. Give Them a Reason.
That's really the lesson.
If you're asking for $10,000, explain why.
If you're offering $5,000, explain why.
If you're rejecting the request, explain why.
Make the case.
The best negotiators aren't necessarily the people who talk the most.
They're the people who prepare.
They know the facts.
They understand the other side.
They know what their client is trying to accomplish.
And they can explain their position clearly.
The number matters.
But the case behind the number is what gives it weight.
Frequently Asked Questions About Real Estate Negotiation
Should a buyer ask for a specific dollar amount?
A specific number gives the seller something concrete to evaluate. But don't pick a number out of thin air. Support it with the inspection findings, photos, estimates and the overall circumstances of the transaction.
Should a seller automatically agree to an inspection request?
No. Understand what the buyer is asking for and why. Then consider the supporting information, the property, the contract, the market and the seller's alternatives.
Should the parties just split the difference?
Not necessarily. Halfway is just a number. The facts may support more or less.
What's one of the biggest mistakes buyers make?
Asking for money without explaining where the number came from.
What's one of the biggest mistakes sellers make?
Responding emotionally — or automatically splitting the difference — without first understanding the request.
What makes a strong real estate negotiation?
Preparation. Facts. Documentation. Communication. And knowing what your client is trying to accomplish.
Don't just make the request.
Make the case.
Thinking About Buying or Selling in the Dallas Area?
Every negotiation is different.
The right strategy depends on the property, the contract, the market, the other party and what you're trying to accomplish.
If you're buying or selling in the Dallas area and want to talk through your situation, let's talk.
No pressure. No sales pitch. Just a conversation about your situation and what the numbers actually say.
Sam Thomas, Realtor®
Providence Group Realty
North Dallas Real Estate Expert
𝗟𝗲𝘁'𝘀 𝗦𝘁𝗮𝘆 𝗶𝗻 𝗧𝗼𝘂𝗰𝗵!
𝐒𝐚𝐦 𝐓𝐡𝐨𝐦𝐚𝐬
Regardless if you are buying or selling a home, Sam will use his 3 decades of expertise to position you to win in the current market. Don't compete with other sellers and buyers. Dominate with the best strategy and negotiation expert.
Call/Text: 214.563.4378
#samthomasrealestateboss
Comments(12)