How well do you negotiate? How well does your Realtor? Negotiation is the key to a successful agreement, especially when dealing with a large transaction, typically for the average person, such as a real estate purchase or sale.
In most transaction, one usually will not be happy with a price that is not discussed, countered, countered back and agreed upon. Often, people overlook homes that they love because ‘the price is too high’. Your realtor should be able to tell you whether or not the property can be negotiated for and give you the reasons that may make a negotiation possible.
It is at that point that you know whether there is a possibility of creating a deal for the home of your dreams.
We are in a phase of the market now that the art of negotiation is a very valuable skill. We are exiting a market where the banks called the shots. Often, they offered the properties at a below market level. Often these homes were in poor condition, but sometimes they were in fairly good shape. Despite that, they kept the price low, inviting investors to bid on these homes, raising them to levels that made little sense to a home purchaser and removing their ability to negotiate, with the bank seeking the ’highest and best’ offer from Buyers, a one shot chance.
The investors are mostly gone now, along with the bank owned and short sale properties and we have now returned to a more normal market with the principle Buyers and Sellers working to create the optimal deal between them, without the lending institutions interfering (as much as possible, hopefully) with the negotiation skills of the principle’s real estate agents. This is where that skill takes place. If you agent does not have experience in negotiation, you may have a severe handicap in the negotiation of a deal if the other side has good negotiation skills.
Negotiation in real estate deals also is more than just price. The terms of the deal, repairs, credits, duration of the escrow period, and other contingencies are all potential subjects of negotiations when putting a contract in place. Your agent, at the end of the day, can save or cost you 1) getting the home you really want, 2) thousands of dollars over the terms of your mortgage, and 3) arriving at a fair price for the property. Without a skilled negotiation in place, you may always wonder about whether or not you paid too much, had a chance at better places for the same prices, or any number of things that may come to mind. One final thing, a successful negotiation does not mean that you have gotten everything you want; it does imply that you have gotten everything you need.
Communication skills are key to a successful negotiation as well. If you have problems communicating with your agent, it is not difficult to think that the same problem may exist when they are speaking to the other agent on your behalf.
If you have any questions about this or any other real estate question, please contact us at 925-308-7045. Thanks!