Seattle Real Estate News

The basic premise of negotiations is to work together to advance on outcome that works for both parties. Here are 6 useful points in negotiations:

1) Take personality clashes out of the equation and create a third party and focus on finding a solution rather than becoming defensive and unreasonable.
Offer price must be within reasonable range on the listing price. Listing comps that listing broker used to generate the listing price would help selling brokers understand the pricing process - an honest home seller trying to secure fair market value and not a greedy home owner trying to make a killing on his home.

2) Look for the "why" which can be invaluable strategy as it gives the opportunity to create a solution.

3) Avoid getting personal because no one likes to be attacked personally. Keep it polite, stay calm, and be respectful. Playing the blame game or reacting negatively will work against our goals.  Always assume the best of the other person negotiating.

4) The more flexible we can be toward the other party, the more likely they will be willing to give us what we want. Decide ahead of time what you can or can't waver on. You often can give the other party what they want without having to sacrifice your position. Both sides must be willing to make some concessions such as giving up on certain repair request from a home inspections report, lowering the closing costs subsidy, offering a home warranty, closing early or taking a home sale contingency. For everyone to win in the end, everyone has to have some skin in the game.

5) Having some empathy for the other person will often ease the pressure in a negotiation enough to get them across the line on the other things that are important to achieve our goals.

6) Use silence as it can be give time needed to "cool off". When we remain silent, we automatically get the "ball in our court" which gives us the power to make the next call. When we do come back to the table with a counter-offer, their anticipation of closing the deal immediately will make the seller more willing to sacrifice items that they have fought hard to get in earlier negotiations because they've seen the light at the end of the tunnel.  When certain parties become unreasonable in the negotiation process -  always be ready to walk away. You can't love something that is unable to love you back.

Ideally in negotiation - we would like to strike for a win-win solution. To achieve this goal - both sides must have their egos in check. "Winning at all costs" mentality should be confronted with "walking away" attitude.  Negotiation is about coming to the most out of someone for the least amount of budget, it's about coming to the most positive outcome for all parties involved.

Posted by Sam Kader on June 11th, 2016 8:20 PM

The appraisal is usually done by a licensed appraiser to give their professional opinion. Lenders would use this value to approve the loan amount you are applying for. In sizzling hot Seattle real estate market with multiple offers, sometimes the appraisal can come in lower that the agreed upon price.

Here are some options for home buyers to consider:

  1. Renegotiate the sales price with the seller - perhaps meeting it half-way.
  2. Move forward with the low appraisal and come up with the shortfall out of pocket.
  3. Challenge the appraisal. We can help you with this this through proper channel.
  4. Hire a second appraiser.
  5. Walk away. Do not love something that is unable to love you back.

Here are some things to consider for listing brokers:

  1. Don't overprice the house. 
  2. Review comps prior to listing the house or making an offer.
  3. Leave copy of comps used at the open house.

In general - it's not good to blast the appraiser, lender, realtors and seller when it occurs. As your professional realtor, I would advise you and make aware of the local real estate market and prepare comparative market analysis of what the property is worth for you to make an informed decision.

Posted by Sam Kader on June 1st, 2016 11:05 AM

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