LOVELAND – Negotiating the purchase of a home can be tricky. As a home buyer, your goal is to purchase a home for the lowest possible price. However, sometimes your approach can backfire and not lead to a positive result. It’s important to know what buyer negotiation strategies to avoid so that you can select strategies that will work to your benefit.
Submitting low ball offers
Submitting too low an offer is a very common buyer mistake. You may think that it’s harmless to lowball an offer and that the worst that can happen is for a seller to say no. However, that truly is not the worst that can happen. Lowball offers can actually ruin your chances of negotiating a decent price. Sellers may be offended by your actions and be less flexible with pricing and terms as a result. In multiple offer scenarios, sellers may not even consider your offer amongst the rest.
Asking for too much
As a buyer, you may be tempted to ask for as much as you can from a seller, including items not normally part of a sale or items that are already specifically excluded. This can make you appear nitpicky and difficult to work with. Sellers often consider buyer temperament when reviewing offers. This is particularly true in multiple offer situations. Asking for too much may hurt the chances of having your offer accepted or negotiating favorable terms.
Focusing on Minor Details
A home purchase is a huge investment. Some matters are minor in the big scheme of things. It’s important not to let minor issues cloud the big picture. Negotiate major issues that are safety concerns or that impact your bottom line. Consider disregarding minor ones. For example, you may not want to negotiate tightening a loose door knob if you’re asking for a roof repair. You can easily take care of tightening a door knob yourself after closing. Sellers are more likely to agree to requests when you appear reasonable in your approach.
Being inflexible or difficult
Maintaining a good relationship with a seller will get you much further than taking a hard stance in negotiations. Buying and selling a home can often be an emotional process. Having negative feelings towards another party will therefore change how you negotiate with them. Thus, both parties being “nice” and accommodating to one another can go a long way.
Summary of buyer negotiation strategies and mistakes to avoid
Every home purchase transaction is unique. It is important to get assistance from an experienced agent when it comes to submitting offers and negotiating terms. Having managed hundreds of home sales, agents are well versed in negotiation strategies, potential outcomes, and creative solutions. This can ensure that you get the home of your dreams for the best possible terms and price.
By Suzanne Plewes, RE/MAX Alliance in Loveland. Suzanne Plewes is a broker associate at RE/MAX Alliance. Write to 750 W. Eisenhower Blvd., Loveland, CO 80537, call 970.290.0373, e-mail email@example.com or visit homesincolorado.com/suzanne-plewes.