Negotiations

Most of the time you are going to find something in the buyer's purchase offer that you don't agree with. Maybe the offered price is too low, or the conditions and inclusions are too demanding. You are now presented with three options:

(1) Acceptance - An accepted offer means you've agreed to all the terms and conditions exactly as set forth in the offer to purchase. Congratulations! You are on your way to closing the deal!

(2) Rejection - You reject an offer when you do not agree with the terms (such as price) and conditions set forth in the offer to purchase.

(3) Counter offer - Prepare a counter offer when you agree with some of the terms and conditions in the buyer's offer, but not all of them. The counter offer may change the price or closing date, or it may add or delete conditions.

If you choose to make a counter offer, the buyer can accept the new terms and conditions, reject them outright and look for another house, or they can decide to work with you to establish mutually agreeable terms. Unless your counter offer was extremely unreasonable, the buyer will likely choose to work with you.

When negotiating, remember to:

Choose your battles wisely - do you really want to jeopardize the whole sale by negotiation over the inclusion of relatively insignificant items like your old drapery or rug? Save your energy for issues that matter most.

Keep it real - Sure, a big profit would be nice, but if you insist on a price too far off the fair market value, you can expect the buyer to walk away.

"Be a lover, not a fighter" - Negotiating back and forth can be stressful but being argumentative and negative when you hear something you don't like won't get you any closer to owning the home. Being polite and collaborative in any dealings with the buyer or their Realtor can take you farther than you may think. Let the buyer know you hear and understand their issues but be respectful when disagreeing with or rejecting terms. Try to communicate your own wishes clearly and be patient and helpful when misunderstandings do come up.

Know when to stand your ground, and when to give in - Prepare for negotiations ahead of time by figuring out which terms of the deal you can compromise on, and which terms are deal-breaking. Make sure your priorities are communicated clearly. And remember, negotiation is all about give and take, so expect to make some concessions. By establishing your position in advance, you'll be able to handle a little of the give painlessly and with certainty.

Know when to walk away - It is unlikely that you and the buyer won't be able to come to mutually acceptable terms, but you have to prepare yourself in case that happens. If it becomes clear that the buyer will never budge on terms that are important to you, its time to move on.

TOP GUNS REALTY INC., Brokerage
830 Rowntree Dairy Rd. #17 . Woodbridge . ON . L4L 5V3 Phone. 416.749.8486  Fax. 905.850.5525

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