How to Negotiate the Selling Price When Buying a House
Get As Much Information as Possible
So often, offers to purchase homes are made without any regard for the needs or wants of the sellers. By asking a lot of questions concerning the seller’s situation the buyer and the buyer’s agent will know what elements of the offer will best help in obtaining approval of a lower offer price. In addition to getting facts regarding the seller, you should also find out something of the personalities of the sellers and their agent. This may sound like a lot of work, but by obtaining this kind of information the buyer will have some insight as to what will motivate the seller. Questions to ask may be: How did the sellers determine the asking price? Where, when and why are the sellers hoping to move? Is their personality competitive and defiant, or are they cooperative and hoping for a win-win transaction? Knowing the answers to these questions will enable you to structure your offer to get a more favorable selling price jack simony .
Present the Offer in Person
In the good old days, prior to fax machines and email, all offers were presented directly to the buyers and their agents. This is a practice that should be restored. According the statistics from the Real Estate Negotiation Institute, making the case to the seller in person greatly increases the chances of getting the offer accepted. If you have an agent, you may have to train him or her to present the offer in person. Agents have fiduciary responsibility to carry out such requests from their buyers.
Explain the Value of Your Offer to the Seller
The value of the offer can only be explained clearly if there is actually value there. The value does not always have to do with the offer price. Other considerations may also induce the seller to accept a lower price. Some of those are: a quicker or longer closing date, a different kind of financing, a larger earnest money deposit, or fewer contingencies. Evidence supplied by a market analysis showing that value is really less than the asking price is a way of enhancing your offer.
Always Get Something in Return
If the seller responds with a counter offer asking you to give up something you will want to request a concession as a condition of acceptance. For example: The seller may ask for an increase in price of $1,000. Your response could be that you could certainly do that if they could leave the stainless steel refrigerator. Keeping this concept in mind through the negotiations will most likely lead to a better financial conclusion.
Two Pats and a Poke
It may sound corny but it works. Pay two natural compliments to the seller before you ask the seller to make a concession to you. This strategy requires some sincerity on your part or the seller will balk. It is not too hard to find something to be sincere about if you take the time to look.
Jack Simony is Chairman of the Board at The Negotiation Institute. The Negotiation Institute is a global leader in negotiation skills training programs and consulting. The Negotiation Institute has provided training for over 1,250,000 clients worldwide since 1966, including the world’s most prominent corporations, educational institutions, governments, and associations. As a recognized expert in the field of negotiation, Jack Simony oversees the curriculum and featured seminars at The Negotiation Institute. In letters and speeches, Jack has looked to emphasize the role successful negotiation plays in today’s dynamic business environment.
Jack Simony’s negotiation experience and his ability to emphasize with unparalleled clarity the varied uses of negotiations techniques in an everyday business environment, have made him a sought after speaker and writer in this area. By introducing new techniques and combining these techniques with past business experiences, Jack is able to connect with his audiences and communicate his message in a clear and easily understandable fashion.
Jack Simony is a frequent speaker at finance, litigation, and academic forums around the world, and is involved in a number of non-profit organizations, including Human Rights Advocates International, a United Nations NGO, where he served a three-year term as the group’s representative to the UN. As a CFE (Certified Fraud Examiner), he is a certified expert in the field of fraud prevention.
Jack Simony serves as a Trustee for the Washington Institute for Near East Policy, is a member of The Army and Navy Club in Washington D.C. and active supporter of a number of philanthropic organizations.
Jack Simony earned a Masters in Financial Strategy from Oxford University’s SaId Business School, and a Master’s in Business Administration from HEC Hautes Studies Commerciales de Paris.
More information on Jack Simony’s activities as a human rights advocate and hedge fund manager can be found by visiting Jack Simony’s websites.
Jack Simony lives in New York City with his wife and children.