Tutorial Item 5
As a buyer, you have two main objectives during negotiation. One is to begin a new life in the house selected. The other is to buy it with reduced risk, and at the price that makes sense to you.
In order to negotiate decisively, you have to be well informed of the market, as we stated earlier. In the absence of that, you may make an offer that is too high and overpay or, alternatively, you may fail to offer a price that can succeed and lose the house to a better informed buyer. We have an analytical background, and we will provide you the comparable information you need to understand your purchase. Sometimes a practical way to understand the market is afforded by viewing the recent neighborhood comparable sales in a tour with us, prior to making the offer.
It is one thing to listen to our opinions or anyone else's, it is another to form your own with the primary information before you. We think that is what you need, and that is how we can best help you to know where your investment fits in the market.
The seller also has objectives. How well you can recognize these and help him solve his problems may dictate what home you are successful in purchasing. The seller's main objective is usually to move his life forward efficiently. His other objective is to maximize his financial return. It is not your goal to pay the most you can for a home, so you won't be able to ideally satisfy the seller an that account. However, his other objective is also very important, and the degree to which you can satisfy this will influence the degree to which the seller will bend to your offer price and your needs. The goal of the negotiation is to win the issues that are crucial to you, and concede the issues that are not if indicated. If you can offer the seller a comfortable closing date, a substantial deposit, pre-approval, or other beneficial terms, you will increase his confidence that your offer equates to resolution of his problem. That has value to the seller and may be worth money to you.
We often present the offer in person to the seller and the seller's agent, or by fax or email with a letter addressed to the seller and seller's agent detailing the buyer's position and justification of offer price, sometimes with comparable information attached. It is our opinion that if all parties are armed with similar information, a similarly logical conclusion should result. The presentation is made in a non-confrontation, diplomatic and respectful manner, but with the pertinent issues articulated.
With clarity of thinking presented, and recognition by the seller that they are dealing with an informed seller fully capable of purchasing the property, a positive result is best promoted. Agents know our company and know that our buyers are well prepared and "real".
During negotiation we share all information with our clients, and all decision are made by the client, with our advice offered.