Whether you're looking to sell a house for the highest price possible or get some more bang for your buck when buying, the art of negotiation will help you get there.
These days, around 73% of homes in America are selling at or above asking price, meaning that sellers are looking at a good market. Buyers on the other hand, clearly need to learn more about real estate negotiation.
There is also no guarantee that the current seller's market will continue meaning that homeowners need to learn how to negotiate just like professional real estate agents do. Here are the most effective negotiating tactics that realtors love.
1. Real Estate Agents Love to Keep People Waiting
One way to negotiate house prices on either side is to play the waiting game. A common trick used by realtors when a potential buyer has put an offer on a home is to wait a few days before responding.
This gives the buyer time to doubt themselves. Perhaps they start to think that their offer is unreasonable and that they're being frozen out as a result.
Even if you're happy with an offer, a brief waiting period could see things improve.
2. Come Armed with Information
Any successful realtor will tell you that negotiating house prices requires being armed with as much information as possible.
A professional, large-scale realtor has something that your average seller does not; in-depth knowledge of the local market.
With this information, which includes local house prices, appreciation potential, and investment returns, you stand to know exactly what a good offer actually looks like.
3. Concede Slowly
On either side of a deal, there will be some give and take. However, the trick is to ensure that you never concede too much to the other party, whilst still showing your willingness to work with them.
Any real estate negotiator will tell you that, if a seller or buyer is asking for a lot of concessions or freebies, you should never just say no.
Instead, say 'yes' to some of the little things, whilst being firm on the larger requests. Show that you are a receptive negotiating partner, but not a pushover.
4. Never Talk First
This one is one of the golden real estate negotiation tips for buyers and sellers alike. If you make the opening offer before the other party has a chance to speak, you'll never know what their starting point was going to be.
Say you're a Realtor representing a seller who is worried about shifting their home. To address this worry, you might be thinking of knocking $10,000 off the asking price to whoever makes the first inquiry.
Imagine if a potential buyer came along and you immediately offered the discount, if they were to make an offer today. The buyer might have been planning to offer you more than the asking price but decided to keep that a secret once they find out you're offering discounts.
Always see what kind of offer the other party wants to make on a property before doing anything or closing a deal.
Understanding Negotiation
Learning the negotiation tactics of real estate agents is just the first step to selling your property on your terms. Make sure to read our extensive home improvement guides to see how you can boost the appeal of your property.
Visit the Real Estate section of our business blog for information on how real estate agents and realtors can sell more properties in a shorter amount of time.
