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Negotiating the Real Estate Contract

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Negotiating the Real Estate Contract

 by: Roselind Hejl

Negotiation is the process of communication back and forth in order to reach a joint agreement. There is no "one size fits all" strategy of negotiating a real estate contract. Many of our clients have been very experienced negotiators, and we have learned a great deal from them, as well as from books on the subject.


We would like to share some of our thoughts on negotiating with you:

What do we want to achieve in a negotiation?

The best negotiators bring an attitude of high expectations to the table.
They are hard on the problem and soft on the people.
Letting the seller know what you need, in a clear and reasoned way, is the first step toward getting it. We try to keep all of these goals in mind:

Enable you to move into your new home.

Obtain the lowest possible price for the property.

Close within an acceptable time frame.

Solve any repair issues fairly.

Have no title, survey or loan problems, or solve any that do arise.

Develop a good working relationship with the seller.

Have no future problems after closing.

Is a cooperative or combative approach more effective?

Our experience shows that the cooperative style is the most effective and efficient way to complete a transaction. Professional negotiators usually try to preserve the relationship between the parties, and work together to resolve problems. The goal is not to reach an impasse in which neither the seller's nor the buyer's needs are met.

Buyers sometimes submit a letter to the seller describing why their house is not worth what they are asking, pointing out deficiencies, etc.

This almost always backfires, and starts the negotiation off with a defensive seller. It is best to anchor your price to the marketplace, while remaining very complimentary of their home.

How do you work with a combative strategy by a seller or agent?

The combative style is sometimes encountered.
This strategy includes: negative comments, emotional statements, table pounding, threats to walk out, ego involvement, and stated positioning.
Creative solutions and trade offs are not as likely to be found in this environment. Working with a combative style negotiator requires a considered approach:

Do not respond emotionally. An angry or defensive response will escalate the negotiation into a no-win battle.


Do not argue. Arguing usually positions them more strongly and drags the negotiation process off course.

Do not ignore their arguments or statements.

Listen carefully, but do not accept or reject.

Firmly anchor pricing and other terms to outside data. Show that the price has not been chosen arbitrarily.

Reduce misunderstanding by following up with written summaries of discussions.

Do not allow hazy or unclear proposals to stand.

Offer some "wins" on some of the terms.
Face saving is very important.

Look for ways to meet their underlying interests.

Remember that they may have a beautiful home that satisfies the buyer's goals.

Is every point in the contact negotiable?

Yes. However, one of the most effective means of coming to an agreement is to rely on consistent standards or norms when possible.


For example, it is common practice for the seller to pay for the title policy and for the buyer to pay survey cost. Using accepted standards prevents buyer and seller from haggling over every point.
Working within the accepted "norms" for our area helps to legitimize offers, and focus the negotiation on just a few points.
On the other hand, all the points in an offer can be used to help structure the deal. They offer trade-off opportunities for both parties to get what they want from the negotiation.

The value of trust in a negotiation cannot be overstated.

Most people are fair minded and reasonable.

They respond well to respectful treatment and to having their concerns heard. If the seller feels that the buyer and agent are acting with integrity, their attitude will be much more cooperative.
Contract negotiation is a sensitive area, and anxiety can be high.
The buyers may have had an unpleasant past experience with buying a home. The seller may be under pressure, with future plans at stake Acting with integrity does not mean that all "cards have to be put on the table.
" It is not proper to discuss personal issues that affect the buyer, such as your financial ability or urgency to move in. It is valuable to develop rapport because trust increases your leverage.

Here are ways:

Listen and understand what the seller has to say.

Express appreciation for the seller's home, gardens, decorating.

Respond within a reasonable time to counter offers.

Reassure the seller of your ability to close.

Reveal some personal information about yourselves.

Finding common ground with the seller can be a very powerful tool in the event of multiple offers. I can think of several instances in which sellers selected their contract for very personal reasons.


(The family reminded them of themselves when they moved in with young children years before.
Or, they were both of the same religion. Or, the new owners would care for their gardens.

)

Understand your leverage.

The more we can find out about the seller's needs, the better chance we have to find solutions to negotiation hurdles.
We will be able to offer information or concessions that appeal to the seller's deepest concerns.
Obviously, if the house has been on the market for 300 days, you have a lot more leverage than you would with a brand new listing.

If their time frame is immediate, and you can meet it, you have some leverage. If they have multiple offers, you have very little leverage!

How much under list price should you offer?

Buyers usually offer less than list price, unless it is a strong sellers market.
There is no standard percentage "under list price" that can be used.

A market analysis will show recent sales for the neighborhood, which is the best way to establish the offer price.

It is usually counter-productive to offer so low that the seller will automatically reject the offer. This will set a negative tone, and may result in an emotional response from the seller.

What if we have a multiple offer situation?

Occasionally the seller receives more than one offer on their property.

The Austin Board of REALTORS has a policy that allows two options: disclosure to all parties that multiple offers have been received, or disclosure to no one that there are multiple offers.
We prefer disclosure to all parties. However, the listing agent and seller will make the decision as to how they will handle offers.
By simply disclosing that there are multiple offers, they are not "shopping" your contract.

Shopping occurs when the seller discloses the terms of an offer to induce a buyer to submit a better offer. This can result in major distrust of the process by the parties, and the likelihood of loss of the buyers.

Usually the procedure is to notify each party that multiple offers have been received.


Each party is then given the opportunity to raise or adjust his offer by a certain time. After that time, the seller is free to review all offers and choose one to work with. They are not obligated to choose the "first" offer that came in.
The selected offer may be countered, or accepted as is.

Roselind Hejl, CRS Top 25 Agents in Austin Texas - Let us help you make your move to Austin. www.
weloveaustin.
com

About The Author

Roselind Hejl, CRS


Top 25 Residential Agents, Austin, Texas - Austin Business Journal Book of Lists


www.

weloveaustin.com


roselind@weloveaustin.

com

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You Will Suck Money From All Over The World

Here you have 143 completely Unique Websites sucking Money from all over the world day and night for you. Its that Easy.

and there is more to explode your income ...

Go ahead, click on "any or all of the Cash Sucking Websites Below", they are Cash Sucking, Income Producing Website Portals that are pulling obscene amount of Money Day and Night. It is Crazy, Mad Crazy.

 

No one else will do this For You, No One

 

Every Business Program out there will charge 2,000 to 3,000 a month for 143 Websites LIVE on Several Dedicated Servers.

 

You immediately get all 143 Cash Sucking Websites grabbing your share of Cash and delivering it directly to you, night and day.

 

You see, most of the money making info you find online has the same problem, They don't show you the details. They don't show you the things that you REALLY need to know. 

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So they tell you to go here and do this...

but then when you try it yourself, you hit a huge hump. 

You find the page is no longer live... or you need to buy a piece of software, or sign up for some kind of  blog or Traffic Program... 

Right Here, your team does it all behind the scenes for you ..

We do It for you,

.

So You Do Not have to  ..

This is the ultimate Affiliate Master Money Maker. We simply install the fastest selling Clickbank Products in its own Informercials for you.

click play to see what its all about

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If you believe that there are no get rick quick schemes that work (I'm talking about legal ones)...

If you believe that you'll need to do some work to make money (okay, duh)...

And if suspect that it does not always take money to make money, that sometimes simply knowing what to do, how to do it and where to do it is enough...

Then you'll want to check out this site I just discovered.

Imagine two college students, with very little money to spare, building and working themselves up to a 20K a month income. Not overnight. Not without WORK. But they did it in

SIX months. And with almost NO money to invest.

Sounds crazy, but it's true.

And Kyle and Carson have proven it's true time and time again, by coaching thousands of people who have built daily incomes of $100 per day, $500 per day, and even $2000 per day... ...

with almost no money out of pocket.

Wow. Their stuff is completely original, tried and true. They do what they preach, and they preach what they do...

Because it just plain works.

Yes, you can make money online. Lots of money.

Without products of your own. Without joint ventures. Without spending a fortune to make a fortune. At your own pace.

If you're willing to follow a tried and true method for making money online without spending a lot of money...

http://reyestam.ulovemoney.hop.clickbank.net

They'll even give you a taste for f-r-e-e, sort of a try before you buy.

Go to their site and get your f-r-e-e copy of How To Turn $5 Into $150 Quickly.

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Then use your $150 to buy their book, and pocket the rest. See?

You're in profit already.

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P.S. The program is called Everyone Loves Money. Kind of a hokey name, but nearly all of the techniques they reveal won't cost you a dime.

So not only are you making money, you're not spending money to make that money.

Now that's something to love!

http://reyestam.ulovemoney.hop.clickbank.net

How The Least Qualified Earn The Most To make money online, you need your own products and lots of money for advertising, right?

In fact, if you don't have money and products, you're not even qualified to make real money, right?

That seems to be what a lot of the "gurus" are telling us. But yesterday I sent you the lowdown on a program that proves those "guru-dudes" wrong.

http://reyestam.ulovemoney.hop.clickbank.net

That's right, I said it...

The gurus are W-R-O-N-G! And some of my readers have already written back to tell me they grabbed the program and were blown away by what they discovered...

You DON'T need products... And you DON'T need money... To MAKE money online.

Here are some of the questions I've received from readers who haven't purchased yet...

Q. Okay, just how much money DON'T I need?

A. Nearly all of the techniques in Who Loves Money won't cost you one thin dime. When they say you don't need money to make them work, that's exactly what they mean. You'll learn how to make money using your brain instead of your wallet. And isn't that the way it should be?

Q. Is this proven to work?

A. Yes, yes and yes. The creators were in college when they figured this stuff out, and they built themselves a $20K per month income. Since then, they've gone on to teach numerous other people to do the exact same thing. And the creators provide you with PROOF and examples of everything they talk about.

Q. Is this info rehashed stuff that's been sold elsewhere?

A. The techniques are based on real-life campaigns the authors created. They use this info day in and day out.

Q. What's the guarantee?

A. If you can follow instructions, you can do this. But if for ANY reason you feel you can't, you'll get your money back, no hassle, no questions.

Q. Do I have to do any work to make money?

A. Duh. Yes, you do. And if you run across a program that says you don't, run. Run very fast.

Q. Can I have a free taste?

A. Yes. Go to the site, fill out your name and email address, and they'll send you the "How to Turn $5 into $150 Dollars Quickly" guide. Get it, read it, do it, and then quickly quickly quickly go back to the site and ORDER, because today they're offering a $20 discount. Don't dilly dally or you will LOSE it.

http://reyestam.ulovemoney.hop.clickbank.net

P.S. This is one of the biggest no-brainers I've run across. You don't need money to make money online if you just know HOW, and this book will show you step-by-step how to do it.

http://reyestam.ulovemoney.hop.clickbank.net

P.P.S Yes, the program's name is hokey. Who cares. It works.

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Okay, this is it, the very last time I will remind you to get yourself over to

http://reyestam.ulovemoney.hop.clickbank.net

fast and order now.

And here are 8 reasons why you should do this for yourself, not me.

  1. You'll learn the secrets to making money online WITHOUT money. In fact, nearly ALL of the techniques can be implemented without spending anything. And that juicy nugget of info should be all you need to know to go here now... http://reyestam.ulovemoney.hop.clickbank.net What, you want more? Okay...
  2. The authors preach what they do and do what they preach. Their techniques are based on real-life campaigns they created. This is not some re-hashed crap that hasn't been tried. This works.
  3. The program will teach you how to find the money (they call them "SWEET" niches) and how to get it.
  4. Move over James Bond, you'll discover how to "Spy" on your competition and let others do research for you.
  5. You'll discover how to do things like the "Top" marketers in the world, but for f*r*e*e. There are VERY few people who know many of these techniques.
  6. You'll learn how to increase your sales conversions 10-fold.
  7. You'll discover how to drive super highly qualified traffic to your website without any investment, and get a 10% conversion rate - no joke!
  8. You'll learn the CRAZY system they call the "Slow Roller Technique". Follow it step-by-step, day-by-day, and make $1000's of dollars a year in income.
  9. The $20 discount is good TODAY. P.S. Does this all sound ridiculously too good to be true? Then I dare you to prove the authors and their many students and followers wrong. Go buy the program and follow the steps they outline (remember, most of the techniques take NO money to implement.) Boy, are you going to have egg on your face. Kind of hard to prove it doesn't work when you've got money piling up in your account faster than you can count it.

http://reyestam.ulovemoney.hop.clickbank.net

And if for ANY ANY ANY reason you want your money back, just ask. It's 100% GUARANTEED. http://reyestam.ulovemoney.hop.clickbank.net

 Subscribe Here

 

... there's always a catch. 

How many times have you tried following some "system", only to find yourself stuck, not able to get it working?

Frustrating isn't it? 

Well, that is not something you need to worry about here. You see, The Team behind the scenes do it for you, so you do not have to ..

Every strategy implemented behind the scenes

... every one of them geared to make you more money. 

To put it bluntly, your team covered everything, every strategy, every trick, competing Full time for you. There's no stone left unturned. 

Your Team behind the scences working full time, setting up your money-making systems internet wide

... and I mean all of it. Nothing is missed, glossed over or anything, Nothing is held back. It's all there, everything you need to achieve obscene amounts of money in your own World Wide business.

Making Obscene Amounts of Money Month After Month, that would alter your life a little wouldn't it? 

Can you imagine what life's like when you make money like that? 

You wake up whenever the heck you want. Morning, noon, night, whatever. 

Then maybe you do some work. But maybe you don't. After all, you've got lots of money coming in every month on autopilot... no point straining yourself right? 

So maybe you spend the day playing golf. Fishing. Racing sports cars. Playing video games. Just hanging out with your family... 

Whatever

The point is, you can do whatever you want. And you can do it whenever you want. And more than that, you can do it in style.

So if you want to hang out on yachts, you can. You want the big house, you can have that too... 

Or maybe you're more conservative? You just want to put your kids through the best schools, and save a little for later in life? 

This is a complete, turnkey system, and it will help you make money right out of the box...

But don't worry... The Home Income Portal goes WAY beyond the basics. Sure, if you're a green as grass newbie who got your first computer yesterday, you can monetize your computer.

But also, if you've made money online before, and you wish you could make more... well there's some super hot stuff here for you too... stuff that I guarantee you don't know

So I want to level with you.

Right now in your life, you may not even know it, you have 2 possible futures.

Sure, I know you're just a regular person, you've got the same problems and struggles we all have. Whatever you choose to do, it will alter your life, permanently.

On one side, you can carry on along the same path you're on right now...
And your life will stay as it is.

You'll always struggle to pay the everyday bills... loans, utilities, whatever...

You'll always wish you had just a little more money...

You'll keepo Dreaming of having a profitable online business...

But you'll never get any closer to those things than you have in the past.

Or...

You can go ahead and start your online business right now...

And by doing so choose the path to success. The path that's going to lead you by the hand and have a team behind the scenes to achieve online business success.

You could have your online business up and running today. And I mean seriously running... getting traffic, making money, the whole thing.

And by this time next week you could have a whole bunch of them...

And by this time next month... man the sky's the limit. You could have tons of sites, each ripping you down some serious profit. You could be making thousands a week, just like I do.

BUT... none of that will happen unless you secure your place right now.

You see, everything you've done in your life so far has lead you to this point... and if you want to get past this point, you need to take some action and shake some stuff up.

So do it. Hit the button below. I'll see you on the other side.
 

Look, I'm going to come totally clean and level with you right now.

If you really want to make money online, The Home Income Portal is all you need...

... no BS, no hype, that's a stone-cold fact.

It doesn't matter if you're just looking for an extra couple hundred bucks a week to pay the bills, or if you want to go the whole hog and make enough to buy sports cars and live the high life.

You know, hire a yacht, sail the world, that kind of thing.

Or maybe you just want to make enough to quit your job and have a little more freedom.

Whatever, it's your call.

The point is, The Home Income Portal can get you all that and more...

The life you want is waiting for you right now. All you need to do to get started is hit that button, and start building the life you deserve...

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