Negotiation is a subtle art in real estate, but skilled negotiators like the team of Patterson-Schwartz agents at Farnan Real Estate, can usually find some common ground that satisfies all parties. On the other hand, using the wrong negotiation tactics or going it alone can sink a deal pretty quickly. Here are five negotiation tactics home buyers should avoid:
1. Lowball offers: Going far below market value when you make an offer damages your credibility as a buyer and can be insulting to the seller. The seller has a range in mind that they’ll accept, and if you’re not even approaching the low end of that range, they won’t even consider the offer.
2. Incremental negotiations: Don’t continue to go back to the seller with small increases in your offer ($1,000 or less). The constant back-and-forth can grow tiresome and lead the seller to consider other opportunities.
3. “Take it or leave it”: Try not to draw a line in the sand with your initial offer. The seller can get defensive and consider other offers if you immediately show that you’re unwilling to budge. Even if it’s true, don’t make a show of it.
4. Nitpicking after inspection: Obviously if inspection reveals a major issue, it should be factored into the final sale price. But insisting on a lower price for every minor repair can put negotiations in a stalemate.
5. Asking for more, more, more: Some buyers will request that the sellers throw in add-ons like furniture or appliances that weren’t included in the listing. Try to avoid giving the seller a reason to build up resentment and think that you’re being greedy.
Negotiating the right price is just one of many benefits buyers and sellers get when working with Farnan Real Estate. The Farnan team has the indelible backing of Patterson-Schwartz, Delaware's largest independent REALTOR® and leader in the Mid-Atlantic region. This provides you access to a bullpen of experts both Farnan Real Estate and Patterson-Schwartz has worked with through the years. From mortgage brokers and lenders to short sale experts, home inspectors, contractors and more, the Farnan team can find the correct answers to your questions.
The Farnan Real Estate team are experts at Delaware real estate and Pennsylvania real estate and are prepared to guide you through the buying/selling process. Contact Farnan Real Estate today to get started.