Real Estate Negotiation – Does it Require a Balancing Act?
Negotiation generally begins when buyer makes an offer. That’s only the beginning – the start of what could be an arduous process – or not. Depends on the parties.
Depends on so many other factors. Some known at the time. Some, maybe not. Regardless, negotiation an integral part of the real estate transaction process.
I once had a transaction where the buyer and seller were gridlocked over a $500 difference in purchase price. Buyers refused to pay the $500. Sellers refused to sell for the $500 reduction.
What do we do? Do we let the deal fall through?
What would you do?
But negotiation doesn’t stop once we’ve come to an agreed to price. There’s the inspection period – the period wherein the buyer gets to do whatever research they want with regard to the purchase of their home.
The most common being the home inspection, where a licensed home inspector comes into the property to inspect the home for needed repairs and/or non-working items.
The inspector provides his report. The buyer reviews it. Has a decision to make. Buyer can accept premises as is, reject the premises completely, or give the seller an opportunity to make the repairs.
Real Estate Negotiation Does It Require A Balancing Act
I once had a transaction where the inspector recommended a complete roof replacement. We had two different roofers come out to evaluate the roof and put in their recommendation. It was unanimous. The roof needed to be replaced. Buyer requested replacement of the roof or reimbursement for buyer to make the replacement. Seller refused. What would you do? Is there anything here to negotiate?
Answer? It depends…
Negotiation can be like riding a high wire. Striking a balance that’s in everyone’s best interest can require some creativity – some sensitivity. The question is, what are the parties willing to sacrifice, if a sacrifice is to be made?
I negotiated a successful transaction for the $500 gridlock and walked away from the roof issue. Both were in the better interests of everyone concerned even though it might not have seemed so at the time.
Successful negotiation does not always ensure we get what we want, but that we get the best possible result.
The question is, does one have the resources and skill set necessary to accomplish the best possible result successfully?
I’m a proud member of the National Association of Realtors®, The Arizona Association of Realtors®, The Phoenix Association of Realtors® and The Arizona Multiple Regional Listing Service.
I’m a graduate of the Bud Crawly School of Real Estate and a graduate of HomeSmart’s SmartLaunch program (an advanced real estate business and marketing program).