Getting to Yes - Negotiating the Deal

Negotiating, we do it every day, in all parts of our lives. When we discuss what to have for dinner, that is a negotiation. When we decide which station to watch, which movie to see, those are negotiations. We do it all the time, often unconsciously. We do it mostly with the little things, and usually it goes very well. We avoid confrontation, sometimes with agility, sometimes not, but we do it.

Negotiating is often viewed as confrontation, with a clear winner and a clear loser, but, it doesn't have to be that way. The best negotiations result in both sides winning, neither side losing. It is called WIN-WIN. Yes, there might be compromise, but it is mutually agreeable compromise.

Whether buying or selling a home, each person wants to get the very best deal that they can. How do we make both sides winners? The simple answer is by doing whatever it takes to make both the buyer and the seller feel good about the transaction. It's getting there that takes the skill.

Here are a few pointers to aide in easing the home buying and selling negotiating process. They apply equally to buyers and sellers:

1. Don't think of this as a win at all costs situation. This is not a contest.
2. Make your offers and counter offers realistic. You, the buyer, are not going to get that house for 10 cents on the dollar. You, the seller, are not going to get paid more than market value for the home.
3. Do not view offers, or counter-offers, as insults. Negotiating is an iterative process, it may often take multiple counter-offers by each party to reach an agreement.
4. Do not immediately respond to offers or counter offers. Take some time to review them. Determine as seller if you can live with what you will net from the offer. Determine as a buyer if you can afford that additional stipulations.
5. You can substitute items of value for money. What does that mean? As a buyer, you can meet an asking price but ask for the appliances to remain, or for a home warranty. As a seller, you can agree to concessions, such as paying a certain amount of the costs to close, but, you can ask for an earlier closing date, or a higher price to cover some of the closing costs.
6. Refrain for providing personal information that may provide leverage to the other party. For instance, as a seller, don't mention that you are being transferred. As a buyer, don't mention that you absolutely love the home and it is what you have dreamed about all of your life.
7. Set a reasonable deadline for response to offers and counter offers. Provide days rather than hours for a response, especially if it involves providing something that is dependent upon the actions of a third party, i.e. getting a survey done, it may take a couple of days to find a surveyor and get the cost of having the survey completed.
8. Keep quiet. Once your offer or counter has been submitted, wait. Don't contact the other side. It puts you in a position of weakness.
   
9. Keep your emotions out of the negotiating process. This is the hardest part of the process, for many, an impossible part of the process. The buyer does not want to pay for you memories of the property. The seller is not there to enable you to afford a boat with the money you will save.
10. At sometime, BAFO. At some point one or the other side will reach BAFO, or Best And Final Offer. If this is the case, make sure that it is stated in your counter offer. It may be the most the buyer can afford, or is willing to pay for the home. It may be the least the seller will take without any further concessions. Either way, when this point is reached, be prepared to say Yes or No. Don't get angry and don't take it personally.
    

And here is my last tip. Get someone to handle the negotiations for you. This could be your Realtor buyers or sellers agent or it could be an attorney or someone else you hire specifically for the negotiation. Some Realtors will handle just the negotiations, and the paperwork for you. But this person should be totally objective about the transaction and able to remain unemotional. This will assure that personalities do not enter into the process.

As your sellers representative, I will present all offers to you, in a very positive manner, along with an analysis of what this means to your bottom line; your net proceeds, your closing date, etc. I will give you time to review the offer, and then we will discuss it. I will present the pros and cons, let you know whether it is reasonable to market value. We can then work out any counter offer strategies, or even a flat out rejection (not recommended).

As your buyers representative, I will work with you on preparing a reasonable offer, to market value and any concessions that might be reasonable, also. Once a counter is received, I will perform the same steps that I would with a seller.

Either way, I will be working to get this negotiation to the point of Win-Win regardless of how many iterations this may take. Whether you use me, another Realtor, an attorney, or do it yourself, this should be your goal; Getting to Yes, Getting to Win-Win.

For information or assistance in buying or selling your home in Athens and the surrounding counties, please call me at 706-207-5290 or click here to email me with your questions and inquiries.