Our clients are skilled negotiators. Some have a natural talent, while others just need a boost of confidence and clear advice to succeed. I enjoy watching people move from feeling unsure to being bold and confident. This leads to real results, like higher profits, better terms when selling a home, or winning an offer even when there’s competition.
Here’s a recent example that shows how our clients benefit from the Essential Real Estate negotiating strategy in real situations.
Home Sale Commission Negotiation. To attract the most buyers, it’s important to price your home based on the starting prices of recently sold homes, not just where you hope to end up. These asking prices show where the competition is. When buyers compete, you can negotiate for the highest net and best terms. One of our clients used this approach and got a great offer, but the buyer’s agent wanted a 3% commission. The client made a counteroffer, changing only the commission from 3% to 2%, which increased their net by over $5,000. The buyer accepted. Whether the buyer paid their agent extra didn’t matter to my clients. They got all the terms they wanted and saved $5,000 by negotiating confidently.
Winning the Accepted Offer in Competition. There are four questions sellers want to know about offers. The first, of course, is price; the second, earnest money; the third, the closing date; and the fourth, whether the offer is a CASH offer. (No financing contingency). Not all buyers can come up with half a million dollars in cash to buy a $500,000 house, but most can get a commitment from a mortgage lender to borrow the bank’s cash. By working with smart lenders, our clients get commitment letters to include with their offers, assuring sellers that the buyer has the funds to close.
If you want your offer accepted in the first week a house is listed, it’s smart to offer at least the asking price or even 5% more. Maybe paying a bit more now for a home you really want is better than missing out and later overpaying just to stop the pain of losing out on homes.
Earnest money is one of the simplest ways to make your offer stand out. Usually, buyers put down 1% of the purchase price as earnest money. Since most people offer the minimum, offering double or triple that amount can make your offer much more appealing to the seller.
When it comes to closing dates, sellers might not always know exactly when they want to close. Our clients often let the seller choose a date within a range. This makes their offer easier for the seller to accept as it is.
A strategy is simply a plan to negotiate on the playing field of your choice, where you have strengths you can leverage to your advantage. With our knowledge of the real estate transaction process on your side, your confidence grows, and you’re able to negotiate fearlessly. We like seeing our clients be the hero in their home-sale or home-purchase story. It’s your life; our goal is to help you make your dreams come true.