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We will continue with the Real Estate Agent hacking skills in the next curcial stage when buying/selling the real estate.
Stage 2: Making the Offer & Negotiation
Congrats – you found The One (house, that is) or you finally lured in a buyer with your beautifully presented home. Now comes the thrilling, nerve-wracking dance of offers and counteroffers. This is where a real estate agent in the US truly earns their keep, but hey, you can steer the ship with the right tactics. Here’s how buyers and sellers can play it smart:
For Sellers: Mastering the Art of the Deal
- Set the Stage for Offers: If you’re a seller, a little strategic theatrics can help. Consider setting an offer deadline if interest is high (nothing sparks FOMO like an “All offers due by Monday at 5pm” note). And when that first offer comes in, remember: it’s not just about the dollar signs. Look at the terms too – is the buyer pre-approved? Are they asking for your beloved vintage chandelier? Do they want you to pay closing costs? The best offer might not be the highest number, especially if a slightly lower offer is all-cash or has no pesky contingencies.
- Negotiation Ninja Moves: When you do counteroffer, have a plan. You don’t have to drop your price $20k at the first counter. Respond with smaller concessions each time to signal you’re nearing your limit – a classic tactic among experienced negotiators . And here’s a little psychological trick: use confident, friendly language. Instead of saying “Take it or leave it,” try something like, “We really value the upgrades we’ve made, so we feel our counter at $X is fair.” (Throw in a smile if you’re face-to-face; it’s harder to say no to a nice person.) Also, don’t underestimate silence – after you counter, zip it and let the buyer (and their agent) stew a bit . The awkward silence can be golden, often prompting the other side to sweeten the deal or at least respond faster.
- Keep Emotion in Check: Selling can feel personal – it’s your home, after all. But when it comes to negotiating, channel your inner Vulcan and try to be logical. If a buyer lowballs you, resist the urge to take offense and yank the welcome mat. It could just be their opening move. Have a frank chat with your agent about whether the offer has potential. Maybe counter closer to your asking price, or throw in a small item instead of a price drop (that patio set you were going to leave anyway). Conversely, if you get multiple good offers, don’t let greed make you overplay your hand. Your agent can help you navigate picking the best one or even doing a round of “highest and best” to maximize the outcome. Remember, a bird in hand (a solid buyer) can be worth two in the bush.
- Commission Is (Kinda) Negotiable:Shh, this one’s a bit taboo to bring up, but real estate commissions aren’t always set in stone. Many agents won’t mention it, but commissions can be flexible. If you’re inclined to try, broach the topic tactfully and politely. One tip: frame it like “Would you consider adjusting your commission if we end up selling above the asking price?” The key is to ask nicely – an agent’s rate is often negotiable, but you don’t want to offend them . The worst they’ll say is no. And if you’ve got a fantastic agent, they’ll likely earn every penny of that commission anyway.
- Stay Wary of the Open House Circus: Ever wonder why your agent is so eager to hold open houses every Sunday? Here’s a secret: open houses can be a bigger boon for the agent than for you . Sure, they might get a few buyers through the door, but often they’re also fishing for new clients (those nosy neighbors and casual drop-ins). I’m not saying you should ban open houses (any exposure can help), but keep your expectations in check. The serious buyers usually schedule private showings. So if you need to skip scrubbing the bathtub for the third Sunday in a row, it’s okay – you’re unlikely to lose a sale over it. Just make sure your agent is also focusing on the marketing that really matters (great photos, online listings, networking with other agents). Cookies and balloons are fun, but a solid marketing plan is what actually sells your house.
For Buyers: Sealing the Deal Without Losing Your Shirt
- Come Prepared (with Data): Before you even think about what to offer, have your agent pull up a Comparative Market Analysis (CMA). This fancy term just means looking at recent sale prices of similar homes nearby. Walk in armed with facts: “The house next door sold for $X last month” is a powerful point. It keeps you from overpaying out of emotion, and it shows the seller you’re no sucker. If homes are flying off the market, you may need to go strong; if not, maybe you have room to negotiate under asking.
- Clever Concessions: Price isn’t the only playing card. If you want to stand out, consider other things a seller might love. Need a slightly lower price? Maybe offer to let the seller rent the place back for a month while they find their next home, or be flexible with the closing date. Conversely, if you really want this house in a competitive situation, think beyond dollars: a larger earnest money deposit, a willingness to waive a minor contingency, or even a friendly personal note could tip the scales. I once saw buyers win a bidding war because they offered the sellers a rent-back for two months at no charge – it solved the sellers’ timing issue. Creativity can win hearts (and deals).
- Don’t Advertise Your Hand: Here’s a classic mistake: telling your agent, “We’re willing to go up to $___ if we have to.” Remember, your agent is ethically bound to you, but when chitchatting with a listing agent, sometimes info slips (or they read between the lines). Keep your maximum budget and willingness to bend a secret as long as you can. Instead, tell your agent the range you’re aiming for and let them strategize based on that. Also, when visiting a home with the seller or their agent present, keep that poker face! Gushing about how “this is the perfect home and you must have it” is like writing an extra check to the seller. Stay cool, ask your questions, but save the happy dance for after you leave.
- Ask “Would It Be Unreasonable?”: Let me share one of my favorite negotiation tricks. Instead of directly asking for a discount or concession, phrase it in a way that makes the other side feel in control. For example, have your agent ask the seller’s side, “Would it be unreasonable to request that the seller cover the home warranty and fix that leaky water heater?”. This phrasing (a nod to negotiation guru Chris Voss) often gets a more positive response. People hesitate to say something is unreasonable. It’s a subtle nudge that can get you concessions without a fight. You’d be surprised how often the answer to “Would it be unreasonable…” is “Actually, that sounds reasonable.”
- Know When to Walk: As a buyer, one of your strongest moves is the ability to walk away. It sounds counterintuitive when you’ve fallen in love with a house, but being willing to walk can save you from a bad deal. If the seller won’t budge on an out-of-line price or refuses to fix a major issue and you’re at your limit, it might be time to politely say “thanks, but no thanks.” I’ve had clients do this and sometimes – lo and behold – the seller comes back a week later ready to talk. And if they don’t, well, you just avoided buying the wrong house on the wrong terms. There will be other homes, trust me.