General Money || Personal Finance || Stock Markets || Real Estate ||
Simple things, that will cost you the deal:
1. You would have noticed most of the times – that a seller will get offended when you make very low offer and refuse to make a counter offer. It’s just almost equivalent to you teasing him with no real interest to bid for the deal. In my opinion, for a Seller, it is “almost” always worth a shot to counter back to a buyer with a reasonable price, even if they submitted a low offer. If you are a buyer quote something reasonable & keep them on interested terms. Learn to patiently evolve the talks, find substantial data to prove your thoughts as to why you think the price could be still lower than what is being discussed. If you are an agent, you must counsel your client (very early) that sellers who can disengage their emotions about the home and view the sale as a business transaction. I am not saying this is easy, but a good agent can really help by talking you through this process and making it easier.
2. Some real estate listing agents won’t spend the time required to type-up a counter offer unless the original offer is “in the ballpark”. They therefore might counsel their seller clients to wait for another, “more legitimate” offer. Honestly it really doesn’t take that much time to draft-up a counter offer, and you can make the duration of the offer a single day if you like. At times, it works in your favour to push the deal to the next day. Unexpected things happen to people every single day and even if an offer does not appear to be “serious”, it may prove to be reasonable after a day or two. Note – this strategy may prove effective, only if you expect some market changes in the short term, which may influence the seller’s interests, else just seize the moment to seize the deal, but push to another day.
3. Last but never the least, don’t ever have disagreements amongst your inner circle during price negotiations. For ex: Husband makes a very low offer to the seller, as a reaction – expressions on wife’s face shows clear intent to mean – that’s a too low offer which her husband is getting in to & she right fully thinks it’s inappropriate. This is the most common example i could think of during family negotiated real estate deals. A simple expression, can let go the crux of the deal & this may give seller to push back the offer & arrive at square one. So always rehearse temperaments of your counter parts involved in the deal & be prepared to be in synchronous of each others reactions. If you are real estate agent reading this, you must council your clients about these sensitive factors that takes away a winning deal away.
Incentives Can be Offered by Buyers/Sellers Too!
– Article by Suman Adithya Rao (SEBI Certified Research Analyst, Management Graduate in Entrepreneurship & Small Business Management)
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