If you’re like many people, you know your Phoenix REALTOR® will handle the negotiation part of your real estate transaction for you – but beware of these “tricks” that can do more harm than good.
3 Home-Buying Negotiation Tricks That Can Backfire… Badly
Check out the three most common negotiation tricks that backfire on well-intentioned buyers:
- Putting in a lowball offer
- Asking for everything
- Making a “bottom line” offer
Here’s a closer look at each.
Bad Negotiation Trick #1: Lowballing
Lowballing is putting in an extremely low offer – one that the seller is pretty unlikely to accept – and using it as a starting point for future negotiations. The problem with lowballing is that the seller is more likely to reject the offer outright than to negotiate with you; you can later come back with a higher offer, but the seller is under no obligation to deal with you at all.
Your best bet is to talk to your REALTOR about what you should offer for the home. Your agent will most likely suggest that you offer a fair market price – or maybe a little below the home’s list price – or that you ask for concessions that can help justify the price that you’re offering.
Bad Negotiation Trick #2: Asking for Everything
Sellers don’t want to have to jump through hoops to sell a home. Naturally, there will be things a person has to do to sell – but if you ask for too many contingencies (conditions that have to be met before the deal goes through), the seller is likely to choose another offer that doesn’t ask for too much.
Sellers generally like the fewest number of contingencies. That doesn’t mean a seller won’t accept your offer because you asked for new flooring – but it does mean that you’re more likely to get a seller to agree to contingencies if the home has been on the market longer than the seller expected.
Related: How to stage a condo’s kitchen to sell
Bad Negotiation Trick #1: Making a “Bottom Line” Offer
You have to be willing to negotiate with the seller, so although you must have an upper limit in mind when you make your first offer, it’s usually not a good idea to dig in your heels immediately. If you make an offer and let the seller know, “This is it – if you don’t like it, we’ll find another house to buy,” there’s a good chance that the seller won’t even try to negotiate with you. Instead, he or she will take you at your word.
Are You Thinking About Buying or Selling a Home in Phoenix?
If you’re selling a home in Phoenix, Cave Creek, Anthem or Scottsdale, we can market it to all the right buyers so you can sell quickly (and at the right price). Call us at 602-332-6188 to learn more.
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