Price is not the most important part of making a deal.
Fast Value: Most buyers and sellers only focus on one thing. Price. Negotiating back and forth on one term is like bartering at a swap meet. If you’re negotiating this way, you are leaving money on the table.
There are 150+ negotiation points in a real estate deal.
Most people only focus on one.
Price.
Yes, obviously, price is important… but it isn’t the only important part.
I always like to exaggerate to drive a point home.
Let’s say you were selling your home. You get an offer for $1 Billion (yes, with a B).
You’d take that offer in a heartbeat, right???
Well…
What if the terms of the deal say that it closes in 100 years?
Not such a no-brainer anymore?
Or maybe you’re willing to make your future generations rich, and you take the deal.
But what if they could cancel the contract anytime between now and then?
I know this is a ridiculous example, but the point isn’t.
The most important part of the deal for most sellers is certainty.
A buyer might write a big number on their offer, but if their loan doesn’t get approved, it doesn’t matter.
They can write a big number to get their offer accepted… then drag out the escrow with inspections and ask for a huge discount.
Most sellers want to get a good price and have great terms in a deal.
Good news for both buyers and sellers. There are ways to make this happen.
Create certainty as a buyer:
- Understand the buying process from beginning to end
- Have a fully underwritten loan approval
- Tight timelines for due diligence
- Move on the seller’s timeline
Negotiate your terms as a seller:
Your ability to negotiate as the seller is determined by how you choose to list your home. There are three major factors in your listing that lead to leverage in negotiations…
- Looks good
- Priced right
- Marketed well
Missing just one of these will lead to a loss of leverage in negotiations.
Moral of the story:
Getting the best deal requires preparation ahead of time.
This is exactly what we cover in our Strategy Sessions we do with our clients.