Jim Valentine: Negotiating in real estate

Everyone wants a “good deal” when they buy or sell a home. The search for a “good deal” will guide you as you proceed with negotiating offers that you make or receive depending on whether you are buying or selling. Don’t negotiate simply for the sake of negotiating, be purposeful and you will stand a better chance of getting what it is you want or achieving your negotiating goals.

Price is often the focal point of negotiations, but there can be many more components in the transaction that can be negotiated to a favorable position for one or all of the parties. These can be time frames, conditions, performance clauses, etc. There are many components to a transaction and a few tweaks here and there can adjust things that can be just as important to pricing considerations to the right person.

Timing is important in a transaction. Speed can help some people, but it can be a deterrent to others. You can offer to have a quick close of escrow to have your offer be attractive to a seller, but it could be a deterrent if they have a lot of things to move, or if they don’t have a place to move to yet. If you don’t need to move in right away giving them time to find a home to go to can go a long way to making your offer accepted over your competition.

Personal property can become a sticking point when negotiating and it isn’t even real property. Pool tables are often preferred to be left in place because of their weight and size, but they aren’t always included in the sales price. Riding mowers or tractors might be useless if you are moving into a condo, but they have value. Did you price your home to include them or are you willing to negotiate their value?

Unless the item is critical to a component of the home or property then it should not be assumed to be included in the sale. You must specify what is included in the offer. Whatever personal property you find of interest don’t let it get in the way of what is important, the real estate transaction. Personal property can always be acquired later.

The condition of the property and potential repairs can often be a negotiation showstopper. The offer boilerplate states that the landscaping will be maintained, and debris removed. This could be an item of negotiation if the seller is remiss in their duties in this regard. This can result in a negotiated financial settlement to keep moving forward.

We like to keep negotiations to a minimum after those that structured the transaction have been completed, but sometimes things come up that force an issue to be mutually resolved. Repair negotiations can result in offsetting the cost dollar for dollar or include a hassle/risk factor that takes the number to 3 or 4 times the actual cost. What does it take to appease the respective parties?

A “good deal” is subjective, different for everybody. For some it is getting the home you want and being able to keep the pool table, snow blower and riding mower with it. For others it is getting 20 percent off the asking price. Everyone has their own idea of a “good deal” so remember to be guided by your thoughts and standards, not those of others. That way you will be happy with what you negotiate as you will achieve what you want, not what others think you should have gotten.

Don’t hesitate to negotiate to get what you want. Sellers put their homes on the market at price and terms favorable to them. It isn’t offensive to the other party; you are expressing an interest in buying what they have on terms acceptable to you.

You may be astounded at what they will accept if you make a run at it rather than pass on it effectively “killing it in committee.” If you don’t get sufficient movement to be comfortable, remember, you were looking for a house when you found that one. Keep looking. The right house might be getting listed right at the time you are having those thoughts. Always be ready to walk from the table if you aren’t able to achieve your negotiation objective.

When it comes to choosing professionals to assist you with your Real Estate needs… Experience is Priceless! Jim Valentine, RE/MAX Realty Affiliates, 775-781-3704. dpwtigers@hotmail.com.