21 Oct The Top Five Worst Home Buying Negotiation Tactics
Beware of These Negotiation Tactics That Backfire
If you choose to negotiate the price of a home, you want to employ precise and positive negotiation tactics. Listed below are some of the least effective home buying negotiation methods. You should avoid these tactics at all costs and make sure to work closely with your realtor to develop positive negotiation methods.
- Asking for Add-Ons as Part of the Sale
While it may be true that the seller wants to get rid of some of their home furnishings in favor of new ones that better suit their new home, asking for these items as part of the sale will make you appear greedy and ungrateful. Do not ask for furniture, appliances or any other home furnishing to be added on to the sale. Aside from raising your chances of having your offer accepted, avoiding this tactic will give you and your family the opportunity to find home furnishings that suit your individual style.
- Using the Home Inspection as a Renegotiation Tool
Sellers are not responsible for minor home repairs, so you should not try to get the seller to lower the price of the home after an inspector suggests a few repairs. Of course, there are some repairs the seller will be responsible for—like repairing a cracked foundation—but adding gutters, upgrading smoke detectors, improving drainage and the like are not the responsibility of the seller. If you ask for these repairs to be covered as part of the sale, the seller is likely to think of you as a greedy buyer, and they may very well reject your offer.
- Making a One-Way Offer
While you likely have a price in mind at which you’re unwilling to negotiate upwards, you do not want to advertise this to the seller. Digging your heels in this way is what many realtors refer to as a one-way offer. Making a one-way offer will put sellers on the defensive and make them feel alienated. You want to develop a personal connection with the seller, and making a one-way offer is a surefire way to undermine this. You are much more likely to have your offer accepted if you negotiate in good faith.
- Negotiating in Increments
Ultimately, if you’re willing to increase your offer by $10,00, for example, don’t make five offers of $2,000. This is likely to make the seller feel alienated, and it will prolong the already lengthy process of selling a home. If you do feel the need to make an offer in increments, talk to your realtor first. They will be able to help you make incremental offers in a way that is favorable rather than in a way that is offensive to the seller.
- Making a Lowball Offer
If you make an offer that is far too low, sellers are likely to see it as an insult or as a sign that you aren’t really serious about buying the house. This is a surefire way to paint yourself as someone who lacks credibility. Plus, making a lowball offer isn’t going to lower the asking price of the house. If you make an offer that is too far below asking price, the seller is unlikely to trust you as a buyer, and you’re much more likely to have your offer rejected.
Ultimately, you’ll want to work closely with your realtor throughout the process of negotiation. The experienced agents here at the Real T Team will help you employ useful and positive negotiation tactics that are favorable to sellers and will increase your chances of having your offer accepted.