Negotiations are an important key
Being informed is the best tool you can use during negotiations. Knowledge about the home’s condition, the range of value, and the many other aspects that affect value will be helpful to your ability to negotiate with confidence. In addition to information regarding the home’s features and value, you must be aware of and consider your emotional and financial situation. So many times, I have seen ego, misinformation, or stubbornness unnecessarily cost a sale. In most cases, one or both parties were not willing to consider the concern or objection of the other party. You discuss and decide on the critical concerns during the real estate negotiation. Because both buyer and seller have different needs and priorities, negotiations can sometimes become emotionally frustrating and confusing. The best way to negotiate is to create a fair “win-win” agreement between buyer and seller.
Seek to understand – then be understood
To understand the negotiating process, you should first appreciate the impact of different interest levels or motivations—these differences, whether large or small, can create a stressful environment for everyone involved. PropBox sellers and buyers are both demonstrating a desire to work together just by joining the program. Your effort in gaining critical knowledge about the other party’s concerns will help guide you through this vital step.
The advantage of working directly together
When no intermediary is involved, two parties negotiate directly instead of four, reducing the chance of miscommunication. For example, when you want to make an appointment to see the house, you message the seller while viewing the home on your computer screen. The seller is notified and promptly messages you back. Otherwise, it can take a day or two to make that appointment. PropBox is the only advertising real estate platform where the seller and buyer communicate directly inside the venue. When PropBox brings qualified buyers and sellers together, they have the same goal – to complete the transaction successfully.
At this stage of the game, many considerations and possible apprehensions occupy the minds of both buyer and seller. Here is an insightful look at what they are thinking.
THE BUYER’S INTEREST
• Why are they selling?
• How was the price determined?
• Have they had other offers?
• How long has the home been for sale?
• Will they come down on their price?
• Should I act firm or non-committal about my offer?
• How can I start lower than asking but not so low as to upset them?
• Will my financing contingency, or occupancy needs, affect my ability to negotiate?
• When should I introduce other aspects like poor condition/ slow market/etcetera that affect the price?
THE SELLER’S INTEREST
• How serious is their interest?
• How was their offering price determined?
• Have they made other offers?
• How long have they been looking?
• Will they go up on their offer?
• How long should I wait to lower my asking price/ if at all?
• If I get a full-price offer within the first week or two, did I “undersell” my home?
• Can they acquire financing?
• Do they have enough earnest money?
• How urgent is the time of occupancy to me?
The answers to these and many other questions depend upon your circumstances. Your best negotiating results will occur if you have accurate, timely information to answer your questions and to help you understand the other party’s position. Ask yourself these questions and relate them to the negotiation. PropBox automatically shares information transparently to create an open negotiation process that simplifies, clarifies, and adds trust to the negotiation.
Be a good listener and don’t depend on others to understand
Our belief about negotiating is to be informed. For example, understanding the other party’s position and the home’s value range improves your chance of succeeding. You will be less likely to get stuck on an unacceptable price because the seller and PropBox remove a major barrier to success. The goal is to bring the buyer and seller together to reach a fair agreement.