Don’t pour salt on the wound.

by Mike Yeo on October 20, 2012

Being in the real estate industry almost 10 years, we have seen and met all kind of folks from seller to buyer to renters and landlords. There is a saying in the real estate industry that there is no one transaction that is alike. Each and everyone is unique.

Why is it unique? It is because each transaction involves two parties that have their own unique situation. Some seller has to sell due to job relocation, divorce, downsizing, upsizing, etc. Some buyer wants to buy for job relocation, expanding their family, investment, etc.

The only common thing in the each unique transaction is the negotiation process. The process goes back and forth between seller and buyer until the price and all conditions are agreed by both parties.

During the negotiation, you should be careful how you negotiated. You do not want to come across as a person that cannot negotiate. Remember that the transaction is not over until it is funded. Until it is funded, there still might be negotiation along the way.

Here are some tips for when negotiating:

  1. Be courteous to one another. Don’t come across as a heartless person demanding everything and anything.
  2. Pick your battle carefully. Everything is negotiable but you want to pick which are the stuff to stick to negotiation and what you don’t really care for.
  3. Be honest and upfront with your agent. If you have a price point or things that you must have, be sure to communicate to your agent. Don’t leave any information out. Otherwise, your agent will not be able to best represent you or advise you.
  4. Be flexible. There are so many dependencies in a transaction. The seller, buyer, title company, home inspector, repair person,mortgage banker, underwriter, appraisal just to name a few. If anyone of them got delayed in what they are suppose to do, everything downstream will be delayed as well. Don’t make any plans to move until you know for sure. Don’t get mad and frustrated and turn into a gremlin. Hence, back to the first rule. Be courteous.

They key thing in negotiating is to come to a middle ground for both parties to find their happy medium. Some people say that negotiation is a win lose situation where one party gets what they want and the other just give in. It does not have to be like that. As long as both parties thinks that they can compromise and get what both parties can get then it will make the negotiation much easier.

Leave a Comment

Previous post:

Next post: