There’s no question that today’s real estate market generally favors buyers. With record high inventory levels and long market times, many sellers, including builders, are feeling pressure to grant significant concessions in order to make a sale. If ever there was a time when smart negotiating could net great returns for bargain hungry buyers, this is it.

But even with these advantages it is important to craft a sensible negotiating strategy before making an offer. A mistake that too many buyers make is to focus only on the listed price, without sufficient regard for the home’s actual value. This can lead to unrealistic expectations and doomed offers that confound and frustrate. It might not be as problematic for the calculating investor, who, in not achieving a deal, simply moves on to the next opportunity; but it can take an emotional toll on the average buyer whose main objective is to acquire a place to call home.

It is a given that buyers naturally want to obtain the lowest price possible, but knowing the correct fair market value range is crucial to a successful negotiation. Focusing exclusively on getting a certain amount off the asking price can be a path to failure. Although most sellers expect to settle for something less than the asking price, there is an emotional component that makes it risky for the too aggressive buyer, especially if the home is reasonably priced for the current market condition. The seller might take an insupportably low offer as an insult, causing a polarization of his attitude and a predisposition to dislike the buyer. While making a friend of the seller need not be the buyer’s objective, turning the seller into a sworn enemy will more often than not work against the buyer.

Other things that many buyers overlook are the give and take aspect of negotiating, and the fact that price is not normally the only consideration in the process. Buyers who are represented by competent REALTORS® have an advantage over those who are going it alone. Not only does the REALTOR® have tremendous resources for finding the best selection of properties that meet the buyer’s needs, but more importantly he can assist the buyer in ascertaining the true value of a home relative to the asking price. If a home is over-priced, the REALTOR® can use pertinent market data as leverage to negotiate the price to a fair number. If a property is well priced, the REALTOR® can provide clear-headed counsel in presenting options and formulating a negotiating strategy to obtain the best overall terms.

Bob Dohn
www.BobDohn.com
Coldwell Banker Residential Brokerage
140-A South Roselle Road, Schaumburg, IL 60193
Direct Phone: 847-301-3126