Good real estate negotiating is built on clear, open communication. Often times two separate parties on opposite sides of an issue will worry about what the other side might want, might say, might react to. A good deal of undue stress in negotiations comes before you even begin talking to the other side. This is unneeded and unhelpful.
First, understand your own position and desires. It is difficult to get exactly what you want in a negotiation if you don’t know exactly what that is. What do you want out of this deal? In real estate transactions, “money” is most often people’s immediate answer, but you may find that there are other, more valuable outcomes you can get: time, flexibility, or maybe that antique flagpole in the front yard. Getting creative in negotiation almost always unsticks a sticking point and moves the deal along.
Then, listen. You know your own wants. The other side is no different. Often times, what two sides want are the same thing and the deal can be resolved easily. Those kind of “win-wins” happen more often than you think. In situations where all parties desire the same thing, you can all mutually recognize that fact and then think of alternative ways to make everyone happy. In the many years of real estate negotiations that I’ve seen, the owners, buyers, and agents who walk away happy are the ones who try to make the other side happy, too. Click here to learn the details.
Read more Q&A articles about the “Negotiating” stage of the Home Buying process:
Reader Question: Just put an offer on a house, and we are under contract. The listing agent and seller are great friends, live on the same street, and have known each other for many years. They are friends with a contractor who does work for them. Following my home inspection, some items came up. The […]
Reader Question: We tried to buy four homes in 2019. We missed on all of them. We live in one of the cities that always makes the news about multiple offers and a hot market. We were not happy with our agent, but it may just be a case of us looking for someone to […]
Reader Question: We are buying a house direct from the owner. The property also contains a partially burned-out mobile home relatively close to the house. It appears to be a total loss. The house was not damaged. Our question is, does the seller have the right to request we replace the mobile home? We […]
Reader Question: I have found a home, and I want to make an offer. There are stories about why and why not it is a good idea to use the listing agent. What are the pros and cons of going directly to the listing agent to make an offer? Monty’s Answer: Some homebuyers never realize […]
Reader Question: We have an accepted offer on a home. The home we really wanted has come down in price, and we would love to get it. Can we do this? Monty’s Answer: The first consideration is to accept that going down this road will involve a cost to you to determine if it […]
Reader Question: The house I am buying has a sump pump because of a standing water problem. I have looked at the home three times and each time I saw standing water in the next door neighbor’s yard. They had dug a long trench which runs along the side of their house facing my […]
Reader Question: We want to share our variable rate commission experience. Our agent and the listing agent both wrote offers on the property. We are friends with one of the sellers’ children, and he told us the listing agent had agreed to cut his fee if he found the buyer. We informed our agent, and […]
Reader Question: I have signed a contract with a seller. I had ten days due diligence to have the home inspected. I did that, and the house looked like a good deal. 21 days later the closing attorney calls and says the home is in probate, and it will take a minimum 6-8 weeks […]
Question: We are dealing with an unrealistic seller. We made a good offer on a home. The seller countered with forty-thousand dollars higher than our offer. According to our agent, the house is not on the market, so they are saving about three percent with a lower commission. The house needs significant upgrades. The bathrooms and […]
Reader Question: We have an accepted offer on a home. We learned that the floor is vinyl, not laminate as stated on the listing data sheet. Unlike laminate, vinyl adds no value to the house. We asked for a $3,000 price reduction which was less than half of a new laminate floor price. We do […]
Negotiating a new home purchase is very similar to buying a pre-owned home. There are differences. Most new-home buyers don’t think to have the home inspected by a home inspector, because the municipal building inspector has to sign off. That inspection is for code compliance. Builders, or their subcontractors make mistakes that have nothing to do with code compliance.
Reader Question: We need advice about convincing the seller to give us pre-closing occupancy. The seller’s agent has advised them not to let us move in. There was an unexpected appraisal problem. The problem was resolved, but chewed up weeks and put us in a bind with our current landlord. How can we change the […]
Reader Question: My wife and I renovated a home owned by my father under the condition that the house would eventually be signed over to both of us. He does not want to sign the house over to us now that we have completed the project. He only wants it in my name and his. […]
Reader Question: I want to hide the real purchase price. I want to pay cash for a house in a very cold market. The house will need work to be livable for me, and I’d like to save money to pay for that work. While I have the advantage as a cash buyer, I hate […]
Reader Question: This is an agent ethics question. An agent of a real estate firm gave us an estimated price they can get for our home, and we signed on with them on that basis. Now, another agent of the same firm brought a prospect through and told them our house is priced too high. Is […]