No buyer wants an uncomfortable confrontation with the owner of a house for sale. Therefore, when a buyer or their agent asks to negotiate on aspects of the sale, it is important for the home owner to project a calm, relaxed mood and respond to negotiation requests politely. This reduces the risk of blowing a potential sale. The items below are just some of the negotiations that will take place in a real estate transaction that you will need to be prepared for.
Common Elements of a Negotiation
1.) The purchase price
2.) The amount of the deposit, Due Diligence and Earnest Money
3.) Who holds the deposit
4.) Financing information
5.) Closing Date
6.) Due Diligence Requests and Contract Amendments
7.) Repairs, credits and allowances
8.) Who pays for what (inspections, appraisals, repairs, attorney fees, etc.)
9.) What is included in the sale (personal property such as appliances, curtains, etc.)
10.) Other conditions of the sale (buyers must first sell their current home, maximum mortgage note %, property inspections, etc.)
12.) Rental fees if seller continues to occupy the home after the closing
13.) Appraisal issues that do not meet the contract price
14.) Time allotments for inspections (due diligence) etc…
15.) Home Warranties (who pays, what provider, what coverage)
By both parties being willing to negotiate and documenting what has been agreed upon, FSBO dealings will go more smoothly, with irritations kept to a minimum. The transaction process will be a win/win situation for both the buyer and the seller.
“Certified Negotiation Expert (CNE®)” Designation
Chris Luther holds the Certified Negotiation Expert (CNE®) designation by the Real Estate Negotiation Institute (RENI). The CNE® is earned by real estate professionals after successfully completing formal negotiation training from. Agents who receive this certification are in the top 1% of all agents nationally.
With professional negotiation skills, agents are able to help clients obtain better results in the sale or purchase of their home. CNE® agents have a powerful competitive edge because of their ability to 1) communicate effectively to uncover more information, 2) help clients understand their options, 3) work collaboratively with others, and 4) resolve deadlocks. CNE® agents have a thorough understanding of how to negotiate effectively to help achieve their client’s goals.
The Real Estate Negotiation Institute is the leading negotiation training and coaching company in the real estate industry. Tom Hayman, the CEO and Co-Founder of the Real Estate Negotiation Institute, is a professional negotiator with 35+ years of negotiation experience, including 25 years with The Procter and Gamble Company (Fortune 50 company). Hayman asserts “Any Buyer or Seller who hires a CNE® agent can feel confident they have one of the best trained negotiators in real estate. They should achieve superior results and have better resolution of all issues when represented by a CNE® agent.”