In the high-stakes world of real estate, negotiation can often make the difference between securing your dream home or walking away empty-handed. And while you may think that the listed price is non-negotiable, this isn't necessarily the case. According to RocketMortgage, it's reasonable to ask as much as 20% below the sales price of a home.
Fast Facts about Real Estate Negotiation
Here are some enlightening statistics that underline the importance of negotiation in real estate:
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Based on data from the National Association of Realtors, 12% of home buyers desired their real estate agent's assistance primarily in negotiating prices.
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A substantial 44% of all buyers believed that their real estate agents bettered the terms of their sales contracts and enhanced their understanding of potential neighborhoods.
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An interesting study found that a whopping 95% of home sellers reported that buyers requested a home inspection.
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Furthermore, this same study revealed that 67% of home sellers found themselves negotiating with buyers over necessary repairs resulting from the inspection findings.
Real Estate Negotiation Tactics
Revealing Your Hand Second
In any negotiation, there's a tactical advantage to letting the other party reveal their position first. This allows you to adjust your approach based on their expectations and also gauge their level of flexibility.
The Power of Inclusions
Including additional items or services in the deal, like appliances or home maintenance services, can create more negotiation room and perceived value. It could make your offer more appealing without significantly impacting your bottom line.
Use of Positive Language
Negotiations are heavily influenced by perceptions and emotions. Using positive and affirming language can help create a more cooperative and positive atmosphere, potentially leading to more fruitful outcomes.
Non-Verbal Communication Matters
The importance of facial expressions and body language in negotiations cannot be understated. They can set the tone for the discussion and subtly communicate your confidence and intentions.
Start Close to the Market Value
When making an initial offer, it's wise to stay close to the property's market value. Too low an offer can be off-putting to the seller and might not lead to a successful negotiation.
Knowledge is Power
Before entering a negotiation, research everything from comparable sales in the area to the seller's reasons for selling. This knowledge can be instrumental in shaping your negotiation strategy.
Stay Positive and Keep Emotions at Bay
Real estate transactions can be an emotional process. Staying positive, keeping emotions in check, and focusing on the objective can result in a more favorable outcome.
Opt for Personal Interaction
Whenever possible, consider meeting in person or speaking on the phone rather than relying solely on written communication. Direct interaction can foster a better connection and mutual understanding.
Always Have a Plan B
In case negotiations don't go as planned, always have a backup property or plan in mind. This will prevent you from feeling cornered into accepting a bad deal.
Know When to Walk Away
Understanding your limits and knowing when to walk away is crucial in negotiation. Don't let the fear of losing out on a property push you into a bad deal.
What is Negotiable When Buying or Selling a House?
Price
The asking price is often the primary point of negotiation in a real estate transaction. Whether you're in a buyer's or seller's market, there's typically some room for negotiation.
Closing Costs
Closing costs can also be negotiated, and sellers might agree to cover some or all of these costs in a competitive market.
Closing Date
The closing date can be moved forward or backward to accommodate the needs of the buyer or seller, adding another element to the negotiation.
Home Repairs
Inspection report findings might lead to negotiations about home repairs. Sellers may agree to undertake necessary repairs or adjust the price to account for them.
Appliances
Appliances may not automatically come with the house, but you can negotiate to have them included in the sale.
Furniture
Similar to appliances, furniture can sometimes be included in the negotiation, saving the buyer from furnishing costs and the seller from moving heavy items.
About The McCooey Olivieri Team
Alexander and Patrick, The McCooey Olivieri Team's founding members, are 5th and 6th generation New Yorkers, deeply rooted in their home state. Their extensive knowledge of the area, acquired over a lifetime, provides an invaluable resource for clients.
The team's coverage area is expansive, stretching from the hustle and bustle of Manhattan to the scenic landscapes of The Hamptons. The McCooey Olivieri Team combines cutting-edge technology with innovative marketing strategies to provide the best outcomes for their clients. Their consistent success was recognized when they were ranked in the Top 1.49% of Medium Teams in the country, according to the Real Trends 2021 Rankings.
If you're looking to buy or sell a home or have any questions about the real estate market in Garden City, NY, Westhampton Beach, NY, and Manhasset, NY, contact the McCooey-Olivieri Team today.
