4 negotiation tactics that you are not aware of

4 negotiation tactics that you are not aware of

If you are wondering why you need a real estate agent when you can do all their works by yourself, then you should know that they are hired for their good negotiation skills. A real estate agent can close a deal from the first conversation. Here are some negotiation techniques that you didn’t know about.

A skilled real estate agent will not narrow negotiation down to price only. This type of negotiation will have one winner and one loser. Before negotiating, you should establish criteria. You should ask enough questions to uncover the primary objectives of the buyer and seller. You should include criteria such as potential future relocation, financial needs, kids, etc. You should negotiate all these terms to get a win-win situation, instead of a win-lose one.

1. Nibbling

This is a strategy used by buyers to get the majority of what they asked for. This way, they make the seller feel cheap. The buyer nibbles a bite here and there to get everything they desire. The seller may agree to all these if he or she is eager to liquidate the property. Otherwise, you need to be careful. If the buyer gets away with one big thing, don’t let him or her get away with the small bits as well. Learn to say ‘no.’

2. Hot potato

It is a strategy where the buyer provides in details about the problems they are facing. The buyer passes the problem to the seller or the listing agent to fix. As a good seller, you should handle each issue logically and pass the challenge back to the person who is responsible for it. The problems that are discussed here are the responsibility of commission, late payment, etc.

3. Good person bad person

In this strategy, the agent is a good guy, and the seller is the bad guy, or vice versa. By hiring a real estate agent, you protect the buyers’ and sellers’ interests. It also provides a buffer from various confrontations during negotiations. You should allow the buyer to get a few of his requests through. By doing so, the buyer will feel that someone is by his or her side. So, he or she will progress and finalize the deal for purchasing the house.

4. The withdraw offer

If your deal gets called off, then take your property to an auction with an end date to encourage competition. This gives the chance of selling your home quickly.

These are the negotiation tactics that the real estate agents use to close any deal. They keep on practicing on their skills so that they can become a better negotiator.

3 reasons why your house needs an appraisal

3 reasons why your house needs an appraisal

When buying property, many people are worried about the appraisal of a home. Here are the reasons why you need an appraisal of a house.

Appraisal is done after the price is set

An appraisal is done after the price is set. The appraiser will visit the house and look at things like the condition of the house, taxes, neighborhood, selling price of the houses nearby, etc. Home appraisals cost from $250 to $400.

Do an inspection before an appraisal

It is a good idea to get your house inspected before the appraisal date. This gives you an idea of what’s wrong with the house. It will also let you help the appraiser find out the most accurate valuation. If the place is in a worst stage than you predicted, you can back out before the appraisal

What happens with the appraisal?

After the completion of an appraisal, another appraiser, like a bank, will review it. The appraiser might be called in to explain things that are unclear. Some big banks use statistically-based automated valuation models to get the detailed data.The second appraiser is less detailed than the first one. If the appraisal is low compared to the cost of the home, or if the house is declared as risky after inspection or appraisal, the bank can cancel the deal regardless of your qualification.

When a bank cancels a deal, you can ask the seller to narrow the gap in the price and resubmit the adjusted amount to the bank. But the risk is low of getting it approved. Also, local banks don’t accept applications that are being rejected by the big banks. So, doing the appraisal correctly is very important.