March 27, 2022

The do’s and don’ts when you start real estate negotiations  

Buying or selling your property is one of the biggest transactions you will make. This fact makes many people overwhelmed and wanting to get the best deal. In real estate transactions, everything is negotiable from closing date, price, and who is going to pay for needed renovations, so it is worth the extra effort to approach the negotiating table prepared.  


Your San Antonio area REALTOR® has a lot of experience helping buyers and sellers take on negotiations, so start by asking for his or her advice. Also, consider these six do’s and don’ts to help you seal the deal with confidence.  


Don’t take it too personally. It is easy to let emotions dictate negotiations. When you receive a lower than desirable offer for your home, try not to get angry. When you purchased the house, didn’t you want a good deal? Their offer is not an insult to you or your house, they are simply starting negotiations. They may be trying to see how low you’ll go, or they may be willing to negotiate on other parts of the sale. Automatically shutting down the offer and not countering because of emotions, may keep you from reaching a sale price, and sale terms you are happy with. 


When buying, don’t get upset if a seller rejects your offer or counters with his original asking price. You may think you presented a fair price for the house, but the rejection isn’t personal. You can try again or move on to another house.  


Don’t exceed your own limits. As the seller, setting your limits before putting your house on the market will help in the long run. What’s the lowest price you’ll accept for your home? What concessions, if any, will you make? As the buyer, what is your absolute maximum budget? How close are you willing to come to that number? 


Do pay attention to the market. Asking your REALTOR® about the current market will help in negotiations. If it is a seller’s market, it may mean you shouldn’t low-ball your offers and ask for a lot of concessions. Likewise, in a buyer’s market, don’t dismiss every less-than-perfect offer for your home.   


Don’t split the difference. Meeting in the middle doesn’t mean that both parties get a fair deal. If a buyer offered $70,000 for your $100,000 home, you countered with $90,000, and the buyer offered to split the difference at $80,000, would you feel like you both won? Whether you’re buying or selling, don’t allow an extreme offer to affect your counter. 


Do think about the big picture. Are you willing to jeopardize the sale of your house because the buyer wants the refrigerator and microwave? As a buyer, how will your monthly payments be affected if the seller won’t drop the price another $5,000? Sometimes you have to take a step back to make sure you’re not overemphasizing one detail that is standing between you and your objective.  


Remember, your REALTOR® can help you analyze the current market and identify an appropriate buying or selling strategy for you.  

For more information on buying, selling, or leasing your home visit and find a San Antonio area REALTOR® today.