Logical Offer Negotiations

Real estate Offer negotiations are not complex. For every problem ever imagined someone has created a contingency to include in the terms of an offer. Offers, which become contracts when agreed to by buyer and seller, are fat with contingencies (or conditions). When the terms are well written, such as "I will do _____ by (date) and if I have a concern I will tell you by (date) and you can do (such and such) or we can agree to disagree and go our seperate ways", buyers and sellers work very well together. The process moves smoothly to closing. What keeps buyers and sellers from getting down to the work of moving toward closing is often the ill will cultured when intentions are questioned. Illogical methods lead to the illness which kills cooperation.

After deciding the home is fine and dandy, a buyer with more information than common sense may grow Donald Trump hair on the brain. Of all the fat in an offer, the only muscle is Price and Closing Date. Money and Time, Time and Money---they are all that really matters. Every other term in an offer affects time or money. Keep that in mind and you will negotiate with logic and your intent will be clear.

This is my favorite:
Illogical price negotiating :
Seller is asking $300,000. Buyer wants to pay less--and does want to own the house. Buyer offers $250,000. Seller counters with $295,000. Buyer counters with $280,000 and expects buyer to accept because "I came up $30,000--Seller only has to come down $20,000. I made the biggest concession."

Where one starts and moves to is not relevant in Home sales. A Seller is equally capable, "Well I started at $325,000--so I already came down $25,000." People--if this strategy made logical sense, Sellers should start $100,000 above their reasonable fair market value and Buyers should start equally low.

Consider that home sales involve some emotions that are rooted in intangibles. If you like a house and you want to own it, perform a thorough analysis of the market as it pertains to that home and your finances. If you can not afford to pay what the market indicates to be the value your options are limited--posturing and implying you think the owner is goofy with the price, let the owner know your limitations. Chances are the owner could care less about your situation but you never know. Better to part ways on good terms in case the owner later wishes to take less than to have the owner say not just NO, but Hell NO! Not EVER will I sell to that knuckle head.

If a lower price is your desire, give on the closing date--most home owners will accept a little less than they planned in exchange for their best closing date.

Go into your next home purchase with this in mind: How much you moved doesn't make sense in the end, but it does make adversaries from the get-go.