We’ve talked about how to prepare and what to do during negotiation. Also, we addressed who to turn to for assistance. However, we still need to discuss what to AVOID during negotiation. Doing and saying the right things can help you obtain a new home, however saying and doing the WRONG things can throw up a roadblock to ownership too.

During the real estate heyday a few years ago, buyers were walking on eggshells trying to do the right things to make their offer stand out. This includes offering more money than what the seller was asking or paying cash.

Those days are gone; however being a sloppy buyer can still prevent you from purchasing a home. For example:

• Don’t insult the seller. Many buyers are still holding out hope that they can sell their home for a higher price so when they receive an extremely low offer they can become angry and insulted. Although it is a buyer’s market, still make a reasonable offer. Your goal is still to obtain the property for the lowest possible price, but you don’t want to anger or insult the owner, which could ultimately eliminate you from even getting to the negotiation phase.
• Offer a price range instead of a hard price when making the initial offer. Don’t want to insult the seller with a lowball price? Present a price range such as $250,000 to $275,000 during the initial tipping off point. That way the seller won’t feel like you are offering your basement price (even if you are) and you won’t be shut out of negotiating.
• Don’t negotiate by fax or e-mail. There’s nothing more powerful than one-on-one negotiation. If you don’t want to be the person in the room, hire a powerful agent to negotiate on your behalf. Negotiating in person allows the seller to see the nonverbal cues along with your voice—all the components of successful persuasion.
• Don’t make it a game. It’s easy to start bargaining and negotiating, only to forget the purpose of why you are doing this. You are not here to “win,” you are here to purchase property for the best possible price. Don’t get emotional or allow your ego to make decisions for you. Sometimes something as little as $2,000 can break a deal because one side won’t “bend” for the other.

We want to see you succeed in your next purchase venture. Contact AmeriFirst today at 800-466-LOAN or click here to contact us online for more information about how to avoid shutting yourself out of a deal!