The Negotiator: Are All Realtors Created Equal?

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When choosing a Realtor, it might seem like the selection process should be pretty easy.  After all, there are thousands of Realtors across most major cities in the United States.   However, there is one major determining factor that you need to consider before you hire a Realtor whether you are the buyer or the seller.  The most important part of your selection process is finding out whether or not your Realtor is a strong negotiator.

Remember that any Realtor can do the mundane tasks associated with the daily job of real estate.  This includes things like uploading pictures to the MLS, returning calls and opening doors.  While these are great things to know how to do, one of the most important tasks that your Realtor will be doing for you is negotiation.  Of course, contract protection is also a very important part of your Realtor's job. The way that your Realtor negotiates for you will be different depending on whether you are a buyer or seller.

Seller Negotiation Strategies

If you are a seller, it's important for you to understand how you should position yourself in your negotiations. It is my strong, professional opinion that you need to move quickly when you receive an offer from a buyer.  You need to keep the coals hot and keep the momentum going.  This means that you should reply quickly to a solid buyer's offer.  Don't reply within a few minutes to make yourself look desperate, but do reply in the quickest amount of time feasible.

Why is this?  Remember that when a buyer writes an offer on a house that they plan to live in, there is a strong emotional element associated with that contract.  They are attached to the house and feel the most vulnerable, nervous and excited right after they write the offer.  The more time you give a buyer to sit and think, they start to get antsy and concerned.  This can lead down a path of losing your contract altogether.

I recently worked with a seller who thought it was a good idea to make the buyer wait one whole week before receiving an answer.  They were trying to “send a message” to the buyer.  However, this is a dangerous thing to do if you really want to sell your house.  Often, buyers will think or convince themselves that this must not be the right house for them since it's so difficult to get their offer accepted.  They do this in an effort to try to emotionally protect themselves.

Buyer Negotiation Tips

When you're the buyer, momentum really isn't as important.  However, keep in mind that if the house is priced aggressively, some other buyer may come along and swoop in front of you.  You don't want someone else to come in and throw you into a multiple offer situation.  Often, this will drive the price up and cause you to pay more for the house, if you end up getting it at all.  In addition, it adds more anxiety to an already tense situation.

In this real estate market, it makes sense to strike while the iron is hot.  I would love to help you negotiate your next real estate contract, so give me a call today to chat about your specific situation.