For home buyers and sellers in Riverside, here are some expert negotiation methods. Strategies for home buyers and sellers. Negotiation is a necessary component of any real estate transaction, as we all know. And doing it successfully, whether you’re buying or selling, is a big component of getting the deal you desire. It’s therefore beneficial to be aware of some of the most effective negotiation strategies and methods that will give you the upper hand. Some are psychological techniques, while others merely require planning – but you must be aware of them and know how to use them.
Don’t Speak First
You never want to be the first to reveal your hand, and this rule applies to both negotiating and poker methods. As a result, don’t speak first. Allow the other party to start the negotiations.
You automatically gain the upper hand when you let the other party start. You find out where the buyer/starting seller’s point is (without committing to anything) and use that information to your advantage.
Most talks end up somewhere in the middle, with both parties gaining and losing something. Allowing (or forcing) the other party to go first gives you a better picture of where the middle ground is and puts you in a better position to relocate it to a location that better serves your interests.
This is one of the bargaining tactics that a good agent will know how to use. Simply call (951) 355-7115 to learn how a Riverside agent may assist you in gaining an advantage in this market.
Be Prepared With Information
Another good bargaining tactic is to be well-prepared with data ahead of time. That way, you’ll be better informed and prepared for discussions than the opposing party, especially if you’re a buyer and the property’s value is important to you.
Before you sit down to bargain, it’s a good idea to have your own independent analysis. That way, you’ll already know how much the house is worth and have a better understanding of the property and its surroundings. Then you’ll be able to make a well-informed offer.
Look for Desperation
It pays to be on the watch for any signals of desperation, whether you’re a buyer or a seller. If the other party is in a hurry to buy or sell, you’ll be in the driver’s seat.
One of our bargaining tactics has the disadvantage that you may not have enough experience to discern symptoms of desperation. Your agent, on the other hand, will know exactly what to look for and how to use it. Simply contact (951) 355-7115 to learn more.
Counter With List Price
The majority of the time, a first offer is not expected to be accepted. A buyer will usually make a low initial offer, and you, as the seller, will respond with a counteroffer. This is where one of our Riverside negotiation methods comes into play.
“Buyers typically expect a back-and-forth negotiation, so their first offer will be lower than your list price – but not necessarily lower than what they’re willing to spend. Because they are fearful of losing the prospective transaction, most sellers will counteroffer with a price that is higher but still below their list price. They want to appear adaptable and prepared to compromise in order to complete the transaction. This method is effective… but it isn’t always the greatest approach to receive top cash. Instead of lowering your pricing, maintain your current purchase price. Someone who is serious about buying will remain engaged and return with a greater offer.”
Set an Expiration Date
Another good tactic among negotiation strategies for sellers is to set an expiration date.
“Let’s say a buyer makes an offer you don’t want to accept, and you dispute it. You’ll then have to negotiate with that person, and it’s typically regarded unethical, though not illegal, to accept a higher offer from another bidder if one comes along.” But“It is feasible to engage in several talks with numerous purchasers at the same time. The seller has the option of disclosing or not disclosing this information to potential bidders… Consider setting an expiration date on your counteroffers if you want to sell your house quickly.”
What this strategy does is force the buyer “must make a choice between getting your home under contract and moving on. Make the deadline shorter than the normal time range in your state’s typical real estate contract, but not so short that the buyer is turned off. You might reduce the default expiration time to one or two days if it is three days.”
Have a Back-Up Plan
Every successful negotiation strategy will include a contingency plan. You’ll need something to fall back on if the first method fails.
Let’s say you’ve found a serious and motivated buyer, but you can’t get the sale price to where you want it. What are your options in this situation? That’s when you fall back on your backup plan, such as promising to cover closing fees.
“These fees can amount to around 3% of the purchase price and cover what appears to be a slew of unnecessary charges. Buyers are frequently cash-strapped as a result of the down payment, moving charges, and the possibility of remodeling charges. . . . While many purchasers cannot or do not want to pay more money up front to purchase a home, they can usually afford to borrow a little more. The transaction may be more likely to go through if you pay them the money they seek for closing charges.”
Include a Riverside Agent in Negotiation Strategies
Having an experienced Riverside real estate agent on your side is one of the best things you can do to win at the negotiation table. Your agent will know exactly which techniques perform best in the local market and will be able to assist you in obtaining the offer you desire. So call (951) 355-7115 immediately if you want to take advantage of agent-driven bargaining methods for house buyers and sellers in Riverside.