Negotiating With Your Buyers

Buyers deal directly with owners to save money. A buyer is giving up what a professional agent would normally do for him or her, such as showing properties, arranging financing, preparing the sales agreement, etc.

One reason a buyer is willing to handle all of these tasks himself is to save money. If the buyer is the one who saves money, the owner is the one who loses money. The buyer thinks he/she can save the brokerage fee by negotiating directly with the owner. The owner also thinks he/she can save the brokerage fee by eliminating the broker.

In essence the owner and the buyer are trying to save ONE brokerage fee, and usually the owner loses. What this means is that the owner may do all the work to sell the house and because of his/her negotiating position, give the brokerage fee to the buyer. The owner might also end up paying for services which a professional agent might have provided. So, in order to put as much money in your pocket as a professional agent would, the only thing you can do is price your home at, and not deviate from, market value.

Personality Conflicts

One trait to remember is that personality conflicts between buyers and owners often result in a lost sale. This occurs because owners are emotionally involved in the transaction. You must be totally objective with regard to the sale. Below are some of the situations that can cause a lost sale:

1. Owners typically express too much eagerness to sell. From this, the buyer becomes bolder and feels better about submitting a "low-ball" offer.

2. Some sellers become offended, don't like or just plain have a bad attitude toward the buyer and refuse to accept a reasonable offer.

3. A lot of sales are lost by a seller being too honest, or better said, "disclosing too much." It's obvious that the traffic is bad in front of the house, but please spare the gory details of the family pet that was run over.

4. Not being flexible enough to accommodate a demanding buyer as to inconvenient times or requiring too much notice prior to showings.

5. Handling the price questions. The seller must be very careful in not disclosing the bottom line too quickly.

6. The buyer always promises everything, but always refuses to contract on the same basis.

7. The buyer will drive the owner crazy with questions and many surprise visits to the home . .. always trying to negotiate a lower price.

8. And last, but not at all the least, sometimes the buyer and seller become close friends and they make promises to each other- and lo and behold, these commitments made in the heat of the moment cannot be performed due to legal, financial or logistical requirements, and then the sale dies a quick death!

There are many other caveats that a seller and buyer create, but I believe these are the most prevalent. By being aware of them, most will be eliminated.