The word negotiation gets thrown around a lot in the real estate world. Sellers want to get the best price and buyers want a deal. It doesn’t matter what side of the deal you are on; this is the largest asset of your life, so knowing some key negotiating skills is important. Emotions always run high during the offer process. These tips will help you will at the negotiating table more often.
Knowledge is Power
Having all the information before walking into the offer presentation will give you the upper hand. In particular, you want to know the taxes and neighbourhood crime rate. Find out the proximity to public transportation and major highways. Determine if there are any area stigmas that the seller might not want you to know. These things could impact value. Consider researching area school ratings, entertainment and places of worship. Knowing more than the other side puts the cards in your hands.
More importantly, you need to know the comparable sales in your area. Your REALTOR® should go through, in detail, all of the recent sales in the neighbourhood. That way, you will know what the extra bathroom is really worth, or what the double car garage is valued at. You can use this to negotiate a fair market price.
Don’t Let the Money Get in The Way of The Deal
Yes, ultimately you want to get the home for the best possible price or sell it for the most. But the most important negotiation tactic is to determine the other side’s motivation so you can make them feel like a winner. Ontario real estate rules state that a REALTOR® can not disclose their client’s motivation to the other side. But through the art of negotiation, a good REALTOR® can draw it out.
The whole point is to attempt to make a connection with the other side. After all, they are not just paper, they are people. You want to appeal to the human component, not just the price of the home. In other words, you want parties to feel like a winner. You’ll be surprised how valuable that is.
Know When to Walk Away
This isn’t just a famous Kenny G song. If you took the time to prepare yourself prior to beginning your real estate journey, you would have a budget. Sticking to it is going to be critical to your negotiation success. It is easy to get wrapped up in the moment or to cave when things seem close but shaky. Real estate negotiation 101 would teach you to not fall in love with the idea of getting a deal done. That is where you pay too much or accept the terms of an offer that doesn’t really work for you and your family.
Negotiating your home sale or purchase should not be stressful. You are moving on to the next chapter of your life. That is exciting. Talk to a real estate agent who understands the power of proper negotiation. If you have any further questions about Markham, contact Markham Real Estate agent Martin MacFarlane today.