Posted: June 27, 2011 By: Dave Ralston
Recently, I was following another blog where a homebuyer was upset that they didn’t get the house they truly wanted because they were outbid. The homebuyer opened by saying that they lost the house because they low-balled the seller upfront and the seller decided to accept another offer. Consequently, they were not working with an agent and were receiving real estate advice from multiple sources.
I’m not going to make the blanket statement that they lost the house because they weren’t working with a good agent. The buyer, in this case, made a blind offer and did not do any research on the home before deciding to make an offer. The buyer mentioned that a family member told them that they simply offer a price that is lower than the asking price. Unfortunately, the house was very competitively priced in reference to comparable properties. When the seller received the offer they felt ambushed by the aggressive and lowball amount. Also, the seller was in talks to receive an offer from another homebuyer whose agent presented a fair offer with details on how they found the value to match the offer. It was presented in person with detailed explanation on the buyer’s intentions, and ultimately the seller was eager to work with the homebuyer.
Real estate is both an emotional decision revolving around your future home and also a business transaction that makes up one of your larger financial investments. For these reasons, it’s important to have a strong report with the opposition. And no matter how aggressive your negotiation, a clear line of communication will help control the direction your offer is going. Put yourself in the opposition’s shoes and imagine if you were left to self-interpret another’s negotiation styles from a legal style form. This is where a good real estate broker earns their value for you.