Negotiate An Offer On Edwardsville Homes

One dictionary says that negotiation is:
"To discuss with a view to reaching an agreement"

Negotiation is the ability to change the opinions of others through
a climate of Favor; instead of Force...

It takes tact, not tyranny, honey, not vinegar... A cool head will get
you ahead... The person with the ego loses.

Some will lie to achieve their goal.
Some will steal to achieve their goal.
Some will terminate your friendship to achieve their goal.

Stay alert to anyone attempting to deceive you.

Carefully read / listen to every word exchanged.

Listen carefully to hear what is the loudest in the mind
of another.

Make no decision without sufficient information.

Stay cheerful & positive.

Define clearly what you expect.

Make certain you understand their expectations.

Negotiation occurs only when you get what you desire by
helping someone else get what they desire...

If you can't get what you want, move on to the next
house and learn from your experience.

Not everyone is as smart as you are. There are three types of Negotiators:

#1. Adversarial: This style is used by Some lawyers & real estate agents
& of course sellers. You will see outrageous demands, then they push,
manipulate and control to get what they want. They do not care if you're
satisfied, they only care about winning for themselves. These types
are foolish to burn bridges they will later need to cross, that's when
you get them. If you settle and are not satisfied, why settle?

#2. Accommodating: This is the "so-called" buyers agent who will
persuade you to accept the sellers terms, just to get the deal signed
and get paid at closing. They will give-in to every request.
Accommodators feel powerless to effect the outcome you really
want, due to lack of time, interest, information, knowledge or
experience and GREED. Often, they can't handle conflict... Find
another agent if you hear, " Let's just agree and get the whole thing
over with, besides, I'd hate to see you lose this house".

#3. Win-Win: When you and your agent negotiate Win-Win (as you
should), you adopt a little of the Adversarial style & the Accommodating
style. You are after gaining FAVOR from the other party, you're
able to achieve your goal. Favor makes the difference.
You get nowhere offending the other party.

Win-Win negotiators recognize that every negotiation brings forth
multiple issues, priorities and possibilities from the other party...
They also respect the other party's concerns feelings and needs,
you give them these things & get your price, win-win... once
that happens, everyone is committed to closure.

Read on to see how to formulate a win-win agreement, in addition
you won't fall prey to the win-lose transactions of the adversarial
"hard-ballers" or the "passive-accommodators".

Adversarial:
Ever walk out of a car dealership? That's a good example of "Adversarial
Negotiations" You let them know you loved the car, told the salesmen
"We will be so glad to get rid of our trade-in". The car you want is a new 2004,
not a left-over 2003. They came back with a low-ball price for your trade-in
(which you earlier set yourself up for) and a super-high price for the car.
(because they noticed you loved it)
After two hours of negotiations, you leave disgusted. They were hoping
you would buy, but now they're expecting you back the next day... They
really don't care either way.

You may find the perfect house you're looking for but the sellers / or
even your agent can ruin everything, and you'll never get the house.
It's bad enough having the other party being "Hard-Ballers" but even
worse when you & your agent does the same, now everyone is mad
at each other and they have lost focus... You are not working with a
"Hit-Man" but a real estate agent. If you and your agent come across
as an adversary you have started a child-like war and you'll both pay later...

Even if you reach an agreeable price, chances are
you could have gotten a better price. Not to mention the favorable
terms you lost out on. They may have been planning to
clean the carpets, fill in the nail holes, paint some rooms.
Pay chem-lawn to come out two more times. Keep the grass cut.
Leave you the area rug, bar stools, the refrigerator, lawn mower,
(the Porsche in the garage) the big screen, etc. Also...
When you do your inspection and come up with repairs, they may
not want to fix anything... And at that point you have put out
$350 for an appraisal & $275 for the inspection, all Non-Refundable.
So you either walk & lose your money or accept the sellers terms.
What if your loan processor gets backed up, or finds bad debt
on your credit report (from someone else with the same name
as yours) and it takes an extra two weeks to clear it up...
Now you can't meet the closing date and you're begging for
a two week extension, but you and your agent have been jerks...
Then you find out the seller has a back-up contract on the
house from another buyer... I call this Win-Lose...
(I love getting even with these types...They may get-me-now,
but THEY get-themselves-in-the-END...) I would rather be
Mr. Lose-Win than Mr. Win-Lose ANY DAY...

It's nice to be important, but more important to be nice...
When you become an Adversary, you create an Adversary...
I, myself am a Hit-Man, I can play the adversary game,
But it's different when it's someone else's money & future...

Accommodating:

This agent will sell you out, wants to make a quick buck
the easy way, or has no clue what they are doing.
Just because your agent is Full-Time and has been around
for years, and is a Big-Top-Producer doesn't always mean that their
experience will be working for you, but could be working for
the agent...

In some cases the experienced agent is not selling you a house,
they are selling you themselves, they want your confidence. Once
they have that, they have you, you'll do what they suggest because
you trust them. They will talk you into a higher price and better
terms for the seller to make their job easier. For example, in which
case do you think your agent will work harder for you, when the
agent knows you've offered $185,000 and are willing to go as high as
$200,000, or when you offer $185,000 and then say, " If they
don't accept this offer, I'd like to go out and look at four or five other
houses this week-end. I would rather work the sellers agent instead
of work the week-end...

Some Agents are also in the "Good-Ole-Boy & Good-Ole-Gal network.
Bob & Susie are in the same office, and have been for years,
Susie is your agent, Bob is the sellers agent. Neither agent
really cares about what is best for their customers, they
want to be chummy with each other and improve their
sales record for the month. Bob says to Susie, "Hey, how
did your showing go last night on my $200,000 listing?"
Susie says, " They really like it a lot and are going to make an offer
on it tonight, they're are pre-approved to go up to $225,000.
So they are over qualified for your listing. The wife wanted to offer
full price, but the husband said they would try $190,000 first,
and then see what would happen". When Bob presents the offer
for $190,000 he told his sellers to counter-back at FULL PRICE,
so they did, and were VERY HAPPY with the outcome...
Now that's Accommodating!

"Oh you know you kids would like living here, what's
an extra $5,000?"

"I am tired of going back and forth with you & the sellers,
go ahead & accept the sellers offer, we gotta get this
together, because I'm leaving for Las Vegas in the morning"

"Yes. I know that house is junk, but I want to sell this guy
a house before I lose him to another agent"

"I am trying to get them to buy the house over on Brookstone,
because the sellers on Brookstone are the buyers buying my listing
over on Woodcrest."

Win-Win:

It starts out with good will & mutual respect. Keep in mind signing
the purchase agreement is only the first stage of the negotiations.
Later problems may pop-up and you will need compassion & vice-versa.

Like I said earlier, it's best when both sides win. If you push too hard
you cause resentment / insult.

Realize you're just buying one house, You're not Donald Trump
in the process of buying Lower Manhattan. (Neither am I)

Also, I am not even, in no way suggesting a buyer to completely
"roll-over" if the seller is being a tyrant or the agent is being
adversarial, I would tell you to move on and let them sit on their
house until they become reasonable. right house, wrong people...

 

Check This Example...

Sellers Listing Sheet
Your Offer
Sellers Counter-Offer
Your Counter-Offer
$200,000
$175,000
$192,500
$187,500
Close in 30 days
Close in 60 days
Close in 30 days
Close in 60 days
Possession: 2 days
Possession: 4 days
Possession: 2 days
Possession: 2 days
$1000 Carpet
Allowance
No Carpet
Allowance
No Carpet
Allowance
No Carpet
Allowance
Washer & Dryer
No Washer & Dryer
Refrigerator
No Refrigerator
Home Warranty
Home Warranty
No Home Warranty
No Home Warranty
Hot Tub Stays
No Hot Tub
Hot Tub Stays
No Hot Tub
Swing Set: Yes
Swing Set: No
Swing Set: Yes
Swing Set: Yes

 

Sales Price: $187,500

This transaction will go smooth, the buyers & sellers will
be civil & kind to one another at closing because
both sides got what they wanted and life is good...


We know up front what the sellers want, that's not hard to figure out.
It's on the listing sheet.

The sellers know what we want, it's on our offer.

List Price:

They "Stair-Stepped" down to our price, we did the same...Upwards.

Date Of Closing:

Notice this was important to the sellers, notice we stuck with their term, why, because their agent told me their New Home would not be complete until then. I knew that a double move would have been expensive, plus no one can find an apartment for only 30 days. So I kind of played with that 30 days on our first offer. Then gave them assurance & security on our final offer that got us our price. I knew that term was our ticket...

Possession:

I thought I would sweeten the terms for them, they did not respond,
Now I know it wasn't important to them... Can't say I didn't try.

Carpet Allowance:

By waiving this, it freed up  $1000. Making it easier on the seller
Only two rooms needed replaced. You still won, you told me you were more concerned about price, than carpet, remember? Besides, your Uncle Harry sells carpet...

Washer / Dryer:

Used appliances... nothing but used appliances, the sellers
gave us a useless bargaining chip. We used it to our advantage.
In fact they threw it out a second time in the form of a refrigerator.
I do respect them for the offering though...

Home Warranty:

Could be considered as a bargaining chip as far as I am concerned. If the home is a 5-plus year old property, it might be worth having. If the home is 10-20 years old, stronly consider. Some "Home-Warranty" providers offer quality coverage, some DO NOT!

Hot-Tub:

I had a tough time getting you to shake that loose, I do however respect the seller's good will for throwing it in, it was only two years old and cost a few bucks.

It only tells me they liked you and wanted to retain you as their
buyer...

Swing Set:

They never wanted it anyway, didn't you see the pictures of their kids on the wall? They have out-grown it. They offered it up front, I pulled it out of the deal because I knew it would be a pain for them to dispose of. Now you call your brother with the two kids and tell him he can have it for free if he helps you move-in...
(even your brother wins)

Accepted Contract On An Edwardsville Home For Sale

You have just spent the last several weeks if not months looking for
the right home in Edwardsville, done some shopping in regards to Financing. You made an offer on a Edwardsville house and experience successful negotiation with a seller.

You now have an ACCEPTED contract...
Read More>

 

 

 


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