Costly Negotiating Mistakes

Like I said before, the single biggest issue on most home seller's minds is how to achieve the highest sale price possible. Although the market plays a large role in the selling price, the negotiating skills of the person responsible for selling your home is also crucial to you.

Negotiating does not have to be as intimidating or difficult as it sometimes sounds. Like anything else, if you have a proven system to follow, and know the signals and the language, you can almost always successfully turn the tables to be in your favor!

The most common and costly mistakes can be made unknowingly by anyone at anytime. Educate yourself on what NOT to do before doing any important negotiating.

• Saying to Much During An Offer

The first most important negotiating rule is to know what you are legally required to divulge. The second is to not say anything more than this in front of someone who is not completely representing your interests. Smart sellers think through every single point they are trying to make before it is spoken.

A perfect example of this is while reviewing an offer blurting out what you consider to he your "bottom line" price. Most likely you just gave the buyer's agent information that he or she will pass on to their client & you will lose the chance of getting a higher price than this. You NEVER have to say anything infront of the buyers agent. Many times buyers agents are asked to leave before discussions over offers.

• Failing to Take Time on The Counter-Offer

Many sellers feel great pressure to respond quickly if not immediately to an offer. The negotiating over price is one of the most important parts of the home selling process and it takes time to think about all the aspects of it and respond effectively. You are more than welcome to request more time, and/or a private conversation with your agent away from the buyers agent. To be even more secure than that, you may wish to have your legal advisor guide you toward your next steps. This is well within your rights, and something I personally encourage. These things will help lead you to a clearer and more effective desicion.

• Giving Away Too Much

I have seen far too many times, sellers who feel obligated to throw in appliances, furniture, light fixtures etc. This is never the case. Unless certain items are specifically listed in your sellers disclosure, you are not at all expected or obliged to give them up.

However, If you were going to offer something, holding these items back until later in the negotiating process is actually much more effective in arriving at the price that both parties are happy with. These items can be used as good negotiating tools. If you were to give them away too early, you would have lost any potential leverage.

• Not Understanding The Issue of "Dual Agency"

Dual Agency occurs when the offer made on your home comes from the same real estate company that you listed your home with. i.e. When both you and the Buyer are represented by agents who work for the same brokerage.

When dual agency exists, both YOUR agent, and the BUYERS agent are legally required to tell each other EVERYTHING that their clients say. So, if you don't want your buyers to know your "bottom line" price, or that you are willing to toss in the appliances if push comes to shove, then you should NOT give this information to EITHER agent at any time. Once that information is given to either agent, it must get passed along to the other. Your agent should ALWAYS make you aware of the implications of duel agency, so you can take away a clear understanding of this issue.

Feel Free to Call me if you have any Further Questions!

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Glen Russell 610.792.3000