The 7 Biggest Home Price Negotiation Blunders

Have a Realtor on your side

A Realtor's life is great: we're damned if we do or if we don't. If you hire a Realtor to work for you, you will get help - otherwise, all we can do is tell you about the property, not the people. You want someone to analyze whether you should pay less? Hire me. You just want to see sold prices, go to town hall. You want to know what is making the sellers "tick" - hire me. You want to do it yourself? It'll cost you more than if you hire a good Realtor because you don't even know what you don't know.

Doodle of NE, you want the sellers to tell you the real reason they are selling? So you can beat them up on price? Not when they have a good Realtor!

Paul of OK, how much did you pay your "crooked" Realtor? Nothing? Not a penny? You got what you paid for - cheapo!

Smokey of NH @ Mar 07, 2009 09:49:07 AM

Cash

More and more people are being pre-approved these days. Buyers are getting savvy and learning from TV shows about tricks like this. So it honestly does not make a difference if you choose to pay cash or not. Realtors are full of crap :-). As a buyer you should be able to talk to the seller and find out the reason for selling, sometimes realtors make crap up like "she is going back to school" or "he is moving to another city" which are the 2 most common ones. In reality they might be a more serious reason why and you should know that to be able to use that to negotiate the price. The realtor only cares about the % he/she gets not the lower price you need as a buyer.

Doodle

Doodle of NE @ Feb 05, 2009 16:49:12 PM

Asking Questions

That is one thing I wished I had done. Talking to the neighbors around the potential home would have given me a better idea of the area and the price to offer. I over paid for a house when I was told by the BOTH realtors that the renovations were done by the current owner when in fact they were done by the previous owner.

I would suggest you look up the price people paid for the houses on the County Accessor Website, if not go down to the conty office and find the information. Most places have them listed by address and name of the owner. Its a great too to help negotiate. I think most realtors are crooks, I am sure that there are some who are good.

I would not believe a realtor if my life depended on it. It is sad but true.

Paul

paul of OK @ Feb 05, 2009 16:42:48 PM

Home Price Negotiation Blunders

As a Realtor representing Buyers I find it benefitial to reveal that a client can pay cash. In todays market most real estate contracts are conditional upon financing and not all loans are approved, often times just before the scheduled closing date. With houses sitting on the market a long time a seller is most willing to negotiate their price down and remove their home from the market for a buyer who can write a contract with no contingencies (need to sell a home in order to buy) or conditions (loan approval required). Stating up front that you have a cash buyer will have a Seller bending over backwards to see that the deal goes through.

Eileen Simms, Keller Williams Realty, Charlotte, NC of NC @ Jan 27, 2009 18:09:51 PM

Home Buying Negotiation Blunders

The author is clearly trying to help would be home buyers.

However, some of the advice he gives is ridiculous.

For example he suggests that a buyer not divulge that they plan to pay cash so as not to present themselves as a person of means.

On the contrary, an offer of cash tells the seller that the sale is not contingent on a bank's approval and therefore the deal can be closed faster and with fewer hurdles.

Also the idea that a buyer should present a range of numbers instead of a hard number is not very saavy. Most sellers will choose the highest number and be done with it, leaving the buyer no choice but to pay that price.

Rather a buyer should have in mind the highest price he will pay but start lower to leave room for negotiation, the end result could be even lower than the highest price he was willing to pay.

B. Vergara of FL @ Jan 23, 2009 08:02:49 AM

Real Estate Confusion of Michigan

We are planning to purchase/get a new house constructed in 2009. I understand that its a destructive market, however, the deals are so good that we both are too confused to intiate it.

Are there any TIPS available to make/break up the deal?

Note: We both do not plan to live longer in the state but if we are destined then might as well have our own space then to rent.

Any thoughts?

Mehak of MI @ Jan 16, 2009 14:55:22 PM

The 8th Biggest Home Negotiation Blunders

Those that blindly promote the use of third party help are presuming that these "experts" possess skills and insight superior to that of their clients; not smart.

Those that have seen only greed and abuse have participated in and been victimized by inexperienced and unethical practicioners resulting in the mess from which we are all now trying to recover.

I am bound by Articles of Ethics and my own (even higher) moral and educational standards that leave me shaking my head all all the mistakes and uninformed decision making revealed in this article and subsequent comments. Thanks to USN for publishing this and the related dialogue.

Rob Burr of NJ @ Jan 15, 2009 20:48:45 PM

The magic of a successful sale

There are many rewards involved in making a successful sale in real estate. Long term rewards often outwiegh the short term. Buyers and sellers have to understand that the transaction has to be a win-win situation for both parties. When either side is too aggressive or near sighted, negotiations will break down and the party that feels wronged will just bend the other way. Both parties have to have the gift of courtesy in negotiating the offer. This will allow each of the parties to present their side of the transaction and keep the playing field open for future exchange of ideas on how this sale can happen. A transaction is never just one sided and it has to be fair to be complete.

Anna Edwards of VA @ Jan 15, 2009 10:34:40 AM