There are many styles of negotiation, some successful and some not. The most successful negotiations are the ones where both parties feel like they got at least a fair deal. Here are some tips on how to get the best deal for you and still have a win-win negotiation.
What does win-win mean?
Win-win negotiation means focusing on the issues that are most important to each party and making sure that each side has at least one “win” and preferably as many wins as possible. Remember that at the most basic level – the seller wants to sell and a buyer wants to buy the property in question – so just making the transaction happen is a win. However, beyond that there are a lot of other factors that will have varying importance to the seller and buyer and it is the Brokers job to collaboratively help their clients “win” what is important to them and to “give” on things that are low importance to their client but high importance to the other party.
Tip: Before you start the process of selling or buying – know you what you are hoping to accomplish with the transaction.
Terms & conditions that you can negotiate
Most people think only in terms of price – sellers want to receive the highest price and buyers want pay the lowest price for the home. There are many other things that you can negotiate in order to get the best deal for you and in most cases, it isn’t solely about the price. Here a few of the more common points of negotiation, but there are many others depending on the market, clients and the property.
• Closing Date. If the seller has already moved out a quick closing might be preferred. If the seller hasn’t moved and has lived at the home for a long time, an extended closing date might be preferred to allow them time to sort, sell, donate and pack might be preferred. A buyer might want a quick close date because they need to move out of their home due to the closing date of their home sale, or maybe they want a longer term that coincides with their current lease term. If one side is flexible about the date and the other isn’t that has value.
Possession Date. The seller might need the money from the sale of their home in order to close on their next home purchase – a delayed possession period might facilitate a smooth transition. Again, flexibility can be valuable.
• The value of a repair and the time to manage the repair. A seller might have the skills required to do repairs and want to save money so a buyer might get more repairs done if they don’t feel the need to control the process. A seller might be willing to provide a credit or price reduction if they don’t have the time to manage a repair. A buyer might want a credit or price reduction so they can control the quality of the repair or roll the repair into a remodel. A seller might have something of value that a buyer wants and would accept in lieu of a repair or credit (like a riding lawn mower) and the seller might not want to bother selling or moving it. Be creative!
Contingencies are all about managing risk during the term of the contract and potentially after the contract also. Depending on a seller’s flexibility they might be willing to take more risk to get a higher price, alternatively they might be willing to accept a lower price for low risk. Contingencies that can be negotiated include: (a) form of payment (various types of financing, cash), (b) inspection timeline and types of inspections (structural, sewer, lead based paint, asbestos, mold, roof, etc.), (c) financing issues – timing of financing application, timing for loan approval, appraisal, etc., (d) sale of a home or the closing of a home that is already pending, (e) certificate of occupancy, (f) seller disclosure, (g) buyer information verification, and any others specific to the property or the participants.
Want to work with an expert negotiator? Ashley is a Certified Negotiation Expert (CNE) with years of experience negotiating successful transactions and has a team of resources to help her get the best deal for you and create a win-win negotiation.
If you’d like to explore your buying or selling options, contact Ashley Farrington at 425-890-0025 www.AshleyFarrington.com