Uncategorized July 30, 2014

What You Need to Know About Making an Offer

1. The only way to win is to negotiate.

You’d probably like to avoid negotiation and just have your first offer accepted. However, the reality of buying and selling real estate is that there will be some negotiation along the way.

Many buyers believe they can make a lowball offer, beat the seller at the game, and then just walk away. All this does is set up a backfire situation. The seller is usually so insulted by your offer that he or she won’t even consider a second offer.

The solution to this problem is what I can “Win/Win Negotiating.” This is a style of negotiation that ensures all parties benefit from the transaction. This means that before writing the offer, you put yourself squarely in the shoes of the seller. Ask yourself this question:

“If you were selling, what offer would make you really happy?”

For example, pretend you have a home on the market listed at $850,000. You would be happy if somebody paid you exactly what you’re asking, but that probably will not happen.

Ask yourself what offer you would be willing to accept. Then, ask yourself what offer you would be willing to think about. Finally, ask yourself what offer would make you downright mad. Put yourself in the position of the seller.

And never say, “That’s my final offer.” All that does infuriate the other party and close all doors of communication.

2. Think about the conditions and terms on which you might be willing to compromise.

Never sit down to write an offer while being inflexible. Be a palm tree, not an oak tree. Sway in the wind a little.

On what parts of this contract could you be flexible? If it’s not price, maybe it’s something else. Perhaps the closing date is negotiable. Perhaps some of the included items are negotiable. Be open-minded if you ever expect to win in a negotiation.

3. Keep emotion out of the negotiation.

If there’s one truth to human decision-making, it’s that emotion plays a key role. To win, you need to keep it in check. Always be willing to walk away from a deal if you find your emotions are getting the best of you.

When you keep these simple rules in mind, your offer has a much higher likelihood of being accepted.

For more information on how to make an offer that’s accepted, please call me at                                 (206) 718-5863 or send me an email to june@windermere.com.