Negotiating Tips - Understanding that Knowledge is Power

The best negotiators operate from a standpoint of having the upper hand. They know their advantages and make sure that it is clear to everyone involved. In real estate, strength is based on the value of a seller's property and the financial clout that a buyer has. However, a strong negotiating position involves many other factors as well.

Finding the perfect dream house is often the easiest part of the process. Finalizing the contract and carrying the transaction through to closing is much more difficult. Take time to consider how much is at stake for both sides. Sellers, understandably, often have a deep emotional attachment to their homes. Buyers, on the other hand, are usually parting with a huge chunk of their life savings. It is no wonder emotions run high! The job of successful Realtors is not only to find the right property for a buyer, and a suitable buyer for a seller, but also to mesh their knowledge of the market with the client’s priorities.

 

Before entering any negotiation, any accomplished Realtor will make sure that there is a thorough understanding of the client's real estate wants and needs – both short- and long-term.  Although money is important, other elements also come into play, such as detailed conditions, home inspection waivers, financing options and projected moving dates. Remember, the “best” offer is not always the highest offer if you are carrying a costly bridge loan and need to move in time for school. Once in a while, you will have to give to get.

 

It is also vital to have a good understanding of what the other side's concerns are. This equips Realtors with the appropriate information to put together the best possible offer on behalf of the client. Experienced Realtors had witnessed scenarios in which a lowball offer was accepted since there were no contract contingencies and the buyers committed to a firm closing date. Sellers, at times, need to unload a property quickly and will accept less money in exchange for a deal they can count on.

 

As a seasoned professional, I make it a point to dissuade my clients from losing themselves in the heat of a bidding war, particularly in the fiercely competitive markets we’ve seen in Calgary in recent years. The last thing I want them doing is overpaying for a property and regretting it later on. A skilled negotiator understands the market, and the needs and desires of all parties concerned.  This understanding means occasionally folding and walking away, with the knowledge that there will always be other listings.


Are you buying or selling a home in Calgary? Do you want an agent who has the enthusiasm and energy to get things done, with your best interests in mind at all times? Contact me at 403-617-8758, kelmacdonald@gmail.com or www.kellymacdonald.ca and let's make good things happen!

Kelly Macdonald is a Realtor® with The Real Estate Company in Calgary, where she has been living (and loving it!) since she was 10. Kelly offers her clients a unique mix of youthful vigor, creativity and technical and design savvy on one hand, and professionalism and transactional expertise from her business degree and strong administrative background on the other. Kelly is also a devoted wife and mother of two, with whom she finds time from her busy schedule to play scrabble and walk by the beautiful lake of their home in Southeast Calgary.