NEGOTIATING WITH YOUR BUYER

By
Real Estate Broker/Owner with CENTURY 21 Advantage Gold

A lot of articles are written which advise the buyer how to make an offer to a seller when they want to buy a house. Very little is written about what the seller should do when they receive an offer, and want to give the offer their best consideration.

When a seller is informed that there is an offer on their property, they immediately ask ,"What's the price?", as if that is the only important consideration. In fact, an acceptable price that is packaged with unacceptable terms is as unpalatable to the seller as an offer with good terms and a low price.

When a seller reviews an offer, they must consider both the price and the terms of the offer. Both of them should be considered with equal weight. After all, you have to consider not only what you are getting, but the manner in which you will receive it.

If a seller were to be offered the asking price, a transaction might seem to be a sure thing. Upon a review of the terms, we might find out that the seller has to bear some of the buyer's closing costs, or perhaps has to hold a mortgage for the buyer at very unfavorable terms. These scenarios are certainly less inviting than a lower priced offer would be if it brought the seller all cash or secured the money more quickly.

In closing I can only suggest that when considering an offer , you try to balance the price and terms, remembering that you have to give something to gain something in most situations.

In making your reply to the offer, try to give the buyer those points that are of less importance to you, while asking only for those items that you feel are needed to make your transaction work for you. Remember that when you try to be a pig, you sometimes end up as bacon !

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