Ask Renee: Negotiating Tactics Gone Wrong

Hello, Renee Han here with Downing Fry Realty covering Southwest Florida, Greater Naples area, and beyond. I am delivering a series called Ask Renee where I tackle some of the more common real estate related questions. And today what we're going to talk about is a handful of negotiating tactics that can sometimes lead to failure or falling short of expectations. The first one we're going to talk about is overly aggressive deadlines. Certainly we all want to make sure that we can get it over the finish line. We wanna drive a hard negotiation and we want answers quickly. However, sometimes giving an offer deadline that is, you know, too far out or too aggressive, some buyers may not want to wait that long to get answers, or some sellers may not be willing to make decisions that quick. So I think you've gotta have a reasonable amount of time put in there when you set a deadline, either as a seller or as a buyer. The second one, when we get confident and we ask for multiple bidders, if we're fortunate enough to have more than one interested party, to all bring their best and final offer. I have experienced this one myself. Sometimes that turns people off and they don't want to get into a bidding war. So I recognize that, you know, it's in your own interest to try to do that because you're trying to drive out a higher sales price, But recognize that when you do that, you could potentially lose buyers. There's no guarantee they're going to want to play ball. And if the strong offer walks away, then you're stuck with lower offers to choose from. The third one, getting greedy with inspections. This can, this can affect both parties. Let me talk about it from a seller perspective. It's easy to get annoyed when buyers come back with a laundry list of requests. That you take care of. However, I encourage you to consider how good the overall package is before refusing to make repairs. On the flip side, if you've gotten a really good list— a sales price on a home as a buyer and you start nitpicking the inspections, that could also lead a seller to walk away from a deal. So I encourage both parties to always look at the overarching overall package and how attractive that is to you. Third one, getting frustrated as you go through the process. You've agreed on some things, you're moving forward in the negotiation, and you get frustrated. You as a seller want to let the buyer know that you're going to put the house back on the market, and that's certainly always an option, but be cognizant of the fact that sometimes homes that go back on the market can have a stigma associated with them.

People start to wonder why it's gone back on the market. And yes, some people will take the initiative to ask about that and learn, but there are a lot of buyers that will discount it and make assumptions about it, or they may pursue the home and think they're going to get a really good deal because this first deal fell through. So just be cognizant of that. Don't be so quick to put it back on the offer before you've really evaluated whether the offer at hand is going to be better than waiting for another one. Next one, getting rigid on the closing date. So you've decided in your mind, seller, when you want to close by, how quick or how long you need that to be, because that's based on perhaps what the closing date is on your new home. But keep in mind that your buyers also have their own scheduling considerations, and so I think sometimes closing day can be one of the flexible levers that you as a buyer or seller can use in your favor. So don't get too rigid on a closing date and run the risk of losing a deal. The last is what I call bait and switch. Um, what I mean by this is you've got possessions in your home that are assumed to go with it, such as chandeliers, light fixtures, faucets. You'd be surprised. And there are times when a seller is in love with what they have and they want to take it to the new house. The risk is if somebody saw those items in the home during showing and then you've removed them, that can cause a late inning foul, if you will, and can be problematic. So what I always share with my sellers is make sure that if you don't plan to leave it, get it switched out before we even photograph it and get it on the market. That way there's no confusion. If you love that chandelier in your entryway and you have to have it That's fine. Let's go get a new replacement one before we take the photos, before we do showings. That way, when folks come to see it, they know what's included in the sale and there's no contesting later. So those are just a few of the common things that can happen during a negotiating process to turn it sideways, slow it down, or sometimes kill a deal. Thanks for stopping by, and if I can ever help you with any of your real estate needs, don't hesitate to call me at 239-287-2576. Again, this is Renee Han.