Picture this: You have been shopping for a home for months, and you finally find The One, but of course, multiple other buyers are also trying to buy it. You put in what you think is an amazing offer.

Good news! You’re a strong contender. However, the seller has another offer just a little higher than yours, but they like your terms–awesome! Would you be willing to raise your bid to match?

If you say yes, you get the house. But also, you’d be paying more than you were planning on, so you want something to show for it. So you agree to the higher price IF they throw in the hot tub, fire pit, and swing set. 

They come back and say yes to the fire pit and hot tub but no to the swing set, which is special to their kids. This is really testing your intestinal fortitude. You ask them if you can sleep on it. Then in the morning, you propose that you split the difference in the money and let them keep the swing set. 

Next thing you know, your agent calls to tell you that while you were obsessing about minutiae, the seller has gotten a cleaner, higher offer from another party and is going to take it. You are crestfallen and humiliated. You over-negotiated and lost.

Here are some tips for keeping that from happening:

1. The offer is not the closing: Buyers act like the offer is their last opportunity to negotiate, and it is not. In almost every case, you still have a contingency period during which you will have the chance to hash out all the details, from timing to repairs, furnishings, etc.. But in your first interaction with this seller, it is in your best interest to make a good impression so that you set the scene for fruitful future negotiations.

2. Negotiation fatigue: The longer you draw out a negotiation, the more time both you and the seller have to think about how NOT to negotiate with each other. After three back and forth exchanges, most people are ready to close the deal or move on. Ask for what you want, and make it easy for them to say yes.  

3. Pacing matters: There are situations where calling a timeout can work very well in your favor. But if you take too long to respond every time, the seller can get annoyed or lose interest (see above) and that does not help your case. By the same token, if you fire off responses too quickly, they may balk because they need more time to process, or they perceive you to be combative or impulsive. 

4. Know your counterpart: Find out from your agent: Is this seller the kind of person who likes to get the last word? Let them have it. Are they more emotional or analytical? Negotiate with them in the style that works for them. Most sellers are just as nervous and stressed out about the negotiation as you are. Think about what you can say that will get the best reception from them rather than barking out your demands. 

Need help through the negotiation process on your next home? Shoot us an email at jill@jillbiggsgroup.com or give us a call at (973) 495-6038!