The HOW of Negotiating?!
Negotiating is an art they say. That rings true in whatever form of negotiation you are partaking in, especially Real Estate. In each and every transaction an offer is put forward and either accepted, countered or declined. That is the basis of it and will always follow suit.
You might think the best agents are the ones who can get you the most money for your home, if selling, or the biggest discount from your purchase, if buying. But done wrong, negotiating can shoot you in the foot and have the opposite effect.
When starting the negotiations, it’s import you are able to justify the offer. For example a $900,000 condo is on the market which you are interested in buying. You decide to offer $800,000 - There is no reason, you just want a discount that’s all. Well assuming there is nothing out of the ordinary like the owner needs a rapid sale for example, it’s likely they will tell you where to go. Now what you’ve done is annoy the seller and annoy the agent. You’ve now tripled your task because you want them to play ball, but have started off by insulting them. Now you must appease the seller to encourage them to bargain, get the agent back on your side, all while representing your own clients interests and money. You can easily see how this “I wanted a discount’ approach can shoot you in the foot! If a buyer or seller believes they are trying to be taken advantage of, nothing will happen other than resentment and people getting their backs up.
Back to that sexy word we mentioned- Justifying. Let’s say you are interested in purchasing that same property listed for $900,000. You take a look at comparables and notice there is a unit 20 floors higher, with a view and a renovation also listed at $900,000. Not to mention this other unit is also 115 Square feet larger. Well now you have your justification on WHY, a price reduction should be considered.
On the other end, if you’re a seller and someone is offering you $25,000 below the asking price, but they have included full subjects and a long closing date - This is also a good place to start your negotiations if that matters to you.
A lot of these differences you will find you can discuss with your REALTOR as they will know what to look/lookout for.
It’s important to note:
There are a million ifs, ands, or buts, when it comes to negotiating. The key is coming to an agreement that works best for BOTH of you. Nine times out of ten, if you are picking very minor items, for every one you come forward with, they can come back with. So be realistic here!
That concludes our school session for today! Make sure you subscribe to our podcast/video and leave us a review if you are finding this information helpful!
Until next week,
Negotiating is an art they say. That rings true in whatever form of negotiation you are partaking in, especially Real Estate. In each and every transaction an offer is put forward and either accepted, countered or declined. That is the basis of it and will always follow suit.
You might think the best agents are the ones who can get you the most money for your home, if selling, or the biggest discount from your purchase, if buying. But done wrong, negotiating can shoot you in the foot and have the opposite effect.
When starting the negotiations, it’s import you are able to justify the offer. For example a $900,000 condo is on the market which you are interested in buying. You decide to offer $800,000 - There is no reason, you just want a discount that’s all. Well assuming there is nothing out of the ordinary like the owner needs a rapid sale for example, it’s likely they will tell you where to go. Now what you’ve done is annoy the seller and annoy the agent. You’ve now tripled your task because you want them to play ball, but have started off by insulting them. Now you must appease the seller to encourage them to bargain, get the agent back on your side, all while representing your own clients interests and money. You can easily see how this “I wanted a discount’ approach can shoot you in the foot! If a buyer or seller believes they are trying to be taken advantage of, nothing will happen other than resentment and people getting their backs up.
Back to that sexy word we mentioned- Justifying. Let’s say you are interested in purchasing that same property listed for $900,000. You take a look at comparables and notice there is a unit 20 floors higher, with a view and a renovation also listed at $900,000. Not to mention this other unit is also 115 Square feet larger. Well now you have your justification on WHY, a price reduction should be considered.
On the other end, if you’re a seller and someone is offering you $25,000 below the asking price, but they have included full subjects and a long closing date - This is also a good place to start your negotiations if that matters to you.
A lot of these differences you will find you can discuss with your REALTOR as they will know what to look/lookout for.
It’s important to note:
Especially in this buyers market, there are homes which are priced accurately in order to sell. Don’t be fooled into thinking every home must have a discount. If it’s priced effectively and you are looking for reasons to drag the price down, you run the risk of them saying no, or worse, someone else coming in and offering the asking price and you losing out.
There are a million ifs, ands, or buts, when it comes to negotiating. The key is coming to an agreement that works best for BOTH of you. Nine times out of ten, if you are picking very minor items, for every one you come forward with, they can come back with. So be realistic here!
That concludes our school session for today! Make sure you subscribe to our podcast/video and leave us a review if you are finding this information helpful!
Until next week,
Jay Mcinnes
T: 604.771.4606
jay@mcinnesmarketing.com
Ben Robinson
T: 604.353.8523
ben@mcinnesmarketing.com