Ever wonder why so many buyers get their dream deal, but you feel like you’re settling? The power is in the negotiation. Let’s talk about a handful of real estate negotiation secrets used by buyers to score the best deal.
6 Real Estate Negotiation Secrets Savvy Buyers Use to Get the Best Deal
Here are six real estate negotiation tips to help that next deal become your best one yet:
Negotiate From a Win-Win Perspective
The best deals are those where everyone wins. Think about this when you’re negotiating. Don’t just consider what you need as a buyer. It’s also important to consider what the seller wants and needs.
Find out what’s driving them to sell their property, and get to know them better. Sellers are more prone to work with you when they’ve met you face to face and feel like they know you.
Some questions you could ask a seller to learn more about their needs are:
- How soon do you need to close?
- What is the reason for selling?
- How long has your place been for sale?
As a seller, you can also take this opportunity to find out more about your buyer. A buyer might want to buy your home to live closer to work or have a large backyard out in the country for activities such as horseback riding and four-wheeling. Maybe they want more room for a growing family, and your home is perfect for that.
Use Market Value, Not Starting Price, As Your Starting Point
One of the best strategies for home sellers is putting the home up for sale at market value (AKA how much the home is worth). If you go with a starting price alone, you may get a significantly lower offer than if you begin at market value.
Also, don’t be surprised if your offer exceeds the market value, which can happen if there aren’t a lot of homes in your area, or your house is in demand by multiple buyers.
As a buyer, you may notice that sellers are willing to go much lower than what they put their home up for. That can give you some power in the negotiation room, especially if there are no other buyers at play.
Learn the Basics of Persuasion
Another way to get a good deal is to use persuasion in the real estate negotiation process. In Influence: The Psychology of Persuasion, Dr. Robert Cialdini discussed six main elements of persuasion. These include:
- Reciprocity: A person is more inclined to do you a favor or give you a gift if you’ve done so for them.
- Scarcity: If a property is in hot demand, buyers need to act fast. That puts the ball in the seller’s court. Real estate is all about supply and demand.
- Authority: Showing evidence that you are a leader in your industry can help you score better deals, as it reinforces that you know what you’re doing.
- Consistency: Simply put, people like consistent people and things. Doing what you say you’re going to do is important to set a precedent early on and improve the buyer-seller relationship.
- Liking: It’s normal to enjoy being around others with qualities like yours. When a buyer and seller build rapport and find common ground, there’s a better chance of the transaction going well.
- Consensus: People want to do things that other people are doing. Agents are more likely to take you on, and that can give you better negotiation power at the end of the day.
Have More Data Than the Other Side
It always pays to know more than the other guy (or gal). Finding out everything there is to know about a property can give you an upper hand in real estate negotiations. Be sure to keep notes about the following questions:
- What is the market value of the home?
- What are they asking?
- How long have other homes like it in the area been for sale?
- What are similar properties for sale in the area?
- What is the total number of bedrooms, bathrooms, and garages?
- How many square feet is the home?
Use Price Anchoring to Find the Lowest Price
This strategy can help you find out how low a seller will go. After you see their offer, consider offering slightly below that.
There’s a good chance that this will go in your favor if not a lot of other buyers are interested due to the close proximity to the original asking price. More often than not, a seller will give you the exact number on what will get them to actually sell their home.
Have a Live Conversation Where Possible
Texts and emails can be impersonal at times. They can also make it hard for buyers and sellers to get to know one another. What can you do instead? You have two options (in general): phone calls or in-person meetups.
Talking to a person over lunch or at the home can help ease the stress of buying or selling a home. It can also give a buyer peace of mind about the decision and reinforce the seller’s decision to sell to a certain buyer.
Other Techniques to Look Into
- Have a solution-oriented mindset at all times. Don’t let a deal go because you think it could get complicated. Make it easy, and everyone benefits.
- Use positive language. Be reassuring and helpful to build trust. Also, don’t let your emotions take over if something doesn’t go the way you want. That’s what negotiation is for.
- Don’t be afraid to say no. This could actually give you power during a deal. Maybe the seller is willing to bend a little to seal the deal. Maybe a buyer is willing to up the offer if the home is the right fit.
How Our Expert Real Estate Agents Can Negotiate on Your Behalf
Ready to buy or sell your home? Here at 4 Degrees, we’re dedicated to simplifying the home buying process and matching you with the home of your dreams.
Our team members are real estate negotiation experts who can help you get the best deal by negotiating with other agents, home sellers, and buyers. We know the market, and we can negotiate on your behalf on the price, closing costs, terms, and more.
Need an experienced, local agent to help with your transaction? 4 Degrees is a leading real estate company in Spokane, WA, who is here to assist you. Get in touch with us today.