Wednesday, April 16, 2014

What is Your Realtor's Negotiation Strategy?

Sarasota's real estate market is facing low inventory and high demand.  There very well may be multiple buyers interested in the same property.  How your Realtor handles offers and negotiates on your behalf is key to your success.

I advise my clients that I negotiate on their behalf from a position of confidentiality.  Information is power, and information in the hands of the other party can be used against you.  Things like the reason for selling, personal financial issues, deadline dates such as the sale of another property, and family issues such as divorce, can hurt you in a price negotiation.

I also negotiate from a position of leverage.  Leverage is gained by being prepared and learning the motivations of the other party.  While I advise my customers not to divulge information to the other party, I have no trouble asking a lot of questions to get the other party or their agent to talk too much.  Buyers often have an emotional reaction that can help give power to the seller during a negotiation.  This is usually a reason listing agents (the good ones, anyway) are present at showings.

Preparedness is crucial.  For buyers this means having proof of funds or a financing approval included with an offer.  Buyers should also offer as large an escrow deposit as possible.  For sellers, copies of condo docs, association rules and regulations, association financial statements, association management contact information, and association fees, should be at hand on day one of your listing.  Copies of receipts and invoices for recent work performed also help a buyer feel good about their decision to make an offer on your property.

When you are ready to buy or sell, make sure your Realtor has a strategy to win.

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