15 Tips for Negotiating Your Purchase Price

By on November 14, 2017

When sitting in front of a seller, negotiating a purchase price that is acceptable to both of you can take time and be a bit intimidating for both parties. Here are some of the things we use that make the process much more simple and successful for everyone involved. I hope you’ll find them helpful, too.

When negotiating with the seller, always:

  1. Understand the goals and desires of all parties. It’s important that you help solve the seller’s problem, but you can only do that when you understand what the problem is. If they’re selling, there’s a reason and, interestingly, it usually has nothing to do with the real estate:

    • transfer

    • divorce

    • illness

    • job loss

    • etc.

  2. Come armed with the facts. Always discuss facts, not emotions.

  3. Determine your client’s alternatives to a negotiated agreement. If not this offer, then what?

  4. Power can be real or perceived so make sure you come in with the strength of research. Know what the house is worth after it’s repaired and know what’s going on in the neighborhood:

    • what’s for sale, for what price, and the condition it’s in

    • what’s sold, for what price, and the condition it was in when it sold

    • days on market for what’s selling

    • etc.

  5. Understand the goals and motives of the seller. It’s been said, “people make an objective decision after they satisfy their emotional needs”, so don’t ignore your clients emotional needs. Really listen to what the other person is saying and repeat back what you’ve heard to validate their opinions.

  6. Ask questions and listen, gently, this is not an inquisition. Listen to what’s being said even when it’s not the answer to a question.

  7. Listen way more than you talk!

  8. Stay flexible – you may need to alter your position to reach an agreement. Be willing to concede before digging in your heels and, again, try not to get emotional.

  9. Going in, know what your concessions can be. Don’t give up more than you can afford just because you got caught up in trying to make the deal work. Know your bottom line before beginning the talks.

  10. Don’t let ego get in the way of a settlement. Again, stick to the facts. This is business, not personal!

  11. All parties need an agreement they can live with and need to feel they got something out of the negotiation that was a “win”.

  12. One of the keys in any negotiation is to ask open-ended questions:

    • “If I can get an approval to buy your house in 9 days, how would you feel about that?”

    • “Where will you move?”

    • “What will be the best thing for your family about moving?”

  13. Never be the final decision maker. “My numbers show that after including repairs and the other items we’ve discussed, I should be able to offer ____________. I don’t know if my office will approve this amount but if I could get approval, how would something that like work for you?”

  14. You may also want to explain to your client that you have other properties to view and you can only afford to purchase so many this month. Theirs may not be the one you end up purchasing.

  15. Remember, the customer in front of you is not the only one you’re speaking to. Whether you can help this person or not, they will be telling others about their experience with you – their friends, neighbors, co-workers, and family members. Be helpful, be courteous, be honest. A great way to build your business is with referrals.

What can you add to the list? What have you tried? How successful are you at negotiating with sellers?

Source by Karen Rittenhouse

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