TEN WAYS TO WIN THE NEGOTIATIONS!
Negotiations are about inquiring about the individual parties – what are their needs? What is the value of the property? What is the feeling? Are both parties equally paired in negotiation techniques and feelings?
1. The monthly difference of $3000 per month is about 15 dollars at 4.5% over years – does your buyer qualify for this? Is it worth a couple of Starbucks a month to own this house? If not, move on???? CLICK HERE TO AMORTIZE
What is the additional down payment? $0 or $300 or $600 – does the buyer have this?
2. The buyer may have requested some items from the seller that may be removed or purchased by others – such as home warranty? Home warranty can be purchased by other parties or perhaps after closing (30 days I think, please confirm.)
3. Is there another type of financing that may save buyer monies? If he is a hometown hero, you might wish to contribute 20% and Parkmont would contribute $750. Fathom Partners to SAVE MONEY FOR HEROES!
4. Do you have a thoughtful and specific estimate of closing costs. Ask your lender and title company to crunch the numbers – the difference in a negotiation may be won or lost based on the difference of a ballpark estimate and specific estimate.
5. Does the seller have a Title Policy – does the title policy qualify for a 20% discount to the buyer at the title company purchase of title insurance. Depending on type of policy, when it was purchased, and who is issuing new policy sometimes there may be a credit or reduction in cost to the buyer title insurance.
6. Take the $3,000 off our commission if you feel the benefits out weigh the consequences.
7. Discuss this with your client – strategize negotiations with your client – 1500/1500 750/750/750/750 – Who can participate??
8. Looking forward, you need to have an understanding of your clients home inspection expectations, as negotiations continue throughout the process. Do buyer and seller have like minds on upcoming issues. Do you expect appraisal difficulties? You need to inquire, if your buyer still wants much more or if seller has no room to budge further – setting expectations forward may be a part of the discussion now with your client and the coop agent.
9. Does the seller have the money available? Perhaps the seller is bringing money to the table – and has no more? Perhaps the seller has plenty of money on the table and just “feels” he wants more. Confirm this is not a potential short sale.
10. Bottomline, what is the property worth? Is the buyer getting a deal, a fair price, or over paying – this is always the starting point. What is fair market value?? Learn more about the GOLDILOCKS THEORY
Always follow your ethics with Cooperating Agent When Negotiating…
Standard of Practice 16-16
REALTORS®, acting as subagents or buyer/tenant representatives or brokers, shall not use the terms of an offer to purchase/lease to attempt to modify the listing broker’s offer of compensation to subagents or buyer/tenant representatives or brokers nor make the submission of an executed offer to purchase/lease contingent on the listing broker’s agreement to modify the offer of compensation. (Amended 1/04)