5 Ways To Ruin A Real Estate Sale

Dated: 06/14/2018

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Negotiation is key in real estate. Having an agent with strong negotiation skills is a must because using the wrong negotiation tactics can sink a deal pretty quickly. Here are some negotiation tactics buyers (and real estate professionals) should avoid:

  1. Lowball offers: Going far below market value when you make an offer damages your credibility as a buyer and can be insulting to the seller. The seller has a range in mind that they’ll accept, and if you’re not even approaching the low end of that range, they won’t even consider the offer.

                    For Example: You are interested in a property that's listed for $300,000. You tell your agent that you would like to offer $275,000 and ask for 3% closing cost assistance from the seller. 9 times out of 10, your offer will get looked over. Let's think about this, you are telling someone that you want to pay them $25,000 less than what they are offering the house for and you also want them to give you $8,250 towards your closing costs. That's taking $33,250 out of the sellers pocket. 

                    Now, if the house is not worth the list price of $300,000 than you have some room to negotiate. But if the property is listed at its comparable value, good luck getting that deal accepted!!

    2. Incremental negotiations: Don’t continue to go back to the seller with small increases in your offer ($1,000 or less). The constant back-and-forth can grow tiresome and lead the seller to consider other opportunities.

    3. “Take it or leave it”: Try not to draw a line in the sand with your initial offer. The seller can get defensive and consider other offers if you immediately show that you’re unwilling to budge. Even if it’s true, don’t make a show of it.

    4. Nitpicking after inspection: Obviously if inspection reveals a major issue, it should be factored into the final sale price. But insisting on a lower price for every minor repair can put negotiations in a stalemate.

    5. Asking for more, more, more: Some buyers will request that the sellers throw in add-ons like furniture or appliances that weren’t included in the listing. Try to avoid giving the seller a reason to build up resentment and think that you’re being greedy.

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Alonna Gordon

Alonna Gordon is a licensed Real Estate Agent based in Maryland. Alonna's background in sales, customer service, marketing and management is a tremendous asset to her clients. She gives constant ener....

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