Your “Saavy Negotiating” May Cost You Your Dream Home
Most buyers have an idea of what their dream home might look like and the price range that they would be comfortable in more or less. This is a wonderful start to the home buying process. With a pre-approval letter in hand, you set out to find your Realtor to find just the right home. Once you find the home that you wish to put an offer in on, it becomes imperative that you remember that if you have hired a competent Realtor that you trust, then listen to their advice. Unless you are a full time investor, it is most likely that your Realtor has negotiated far more contracts on homes than you have.
Realizing that as a buyer you have certain ideas on what price and terms you would like to ask for, it is in your best interest to heed the advice of your Realtor when it boils down to the “nitty-gritty” of the negotiations. If you find yourself in the midst of Counter Offers where your offer was not accepted at face value and they have proposed a different set of terms, conditions, etc. remember that you must decide what your must haves are versus the non-consequential issues. Sometimes buyers get caught up in “the gotta win” syndrome and lose sight of the bigger picture. When this happens, the buyers “saavy negotiating” may cost you your dream home. Why? Because believe it or not, buyers and sellers alike often lose their objectivity and begin negotiating off of emotion instead of sound, prudent facts.
For example, I recently dealt with buyers who after a year of searching for their perfect dream home locate a home in pristine condition that was well within their price range. After days worth of mulling over whether to submit an offer and then numerous days of offers and counter offers the seller agreed to almost everything that the buyer wanted. There was still some negotiation on the purchase price. In the end the buyer actually wanted to negotiate a lower price on the house over a difference of a $20.00 a month payment. No matter how much counsel this buyer received from the lender or myself, they became stuck like glue to this $20.00 a month. Seriously! Well you can guess what happened to that dream house, can’t you?
This “saavy negotiator” shot his own self in the foot. Do yourself a favor, hire a competent Realtor and then LISTEN! Don’t get in your own way of success.
Disclaimer- All information contained herein is deemed reliable but not guaranteed. You are advised to consult a reputable attorney for all legal advice or a reputable tax advisor.