Dale 'Kent' Shaw

Dale 'Kent' Shaw

DRE#

Counter-Offers & Negotiations

 

Counter-Offers & Negotiations

When we've received an offer on your home — keep your emotions in check and your eyes on the goal — you’ll save money when selling your home!  There's a lot more to negotiate besides the price — in fact, virtually everything in a real estate transaction is negotiable!

Selling a home can be emotional, but negotiating the price and terms shouldn’t be. The key to maximizing your proceeds when selling your home is sticking to a plan during the turbulence of high-stakes negotiations.  Selling a home is a business transaction, and treating it that way helps you save money — that's another important area where I will be a valuable asset.  I will help you analyze the offer to determine a negotiating strategy and suggest alternative terms for a possible counter-offer that accomplishes what you need and want.  As your Realtor®, who represents your best interests, I can guide you and offer you advice, but ultimately you are the one who must make the final decision regarding offers and possible counter-offers.

Of course, you want your home to sell for top dollar and you want to walk away with as much money in your pocket as possible!  Your first instinct may be to just pick the highest bid on the table — but the offer price isn’t the only thing worth considering.  Some offers may seem great on the surface, but significantly less so once it is analyzed.  The buyer's initial offer price and terms sets the tone for the entire negotiation, think of the initial offer as the buyer’s opening bid in their negotiation to buy the home.  First, I will prepare a net-out report using the price and closing costs distribution included in the offer to estimate your net proceeds from the sale to help us better analyze the offer.

Every offer has five important components:

  • Price (obviously)

  • Closing Assistance — Often first-time buyers (and sometimes other buyers) don’t have enough money to cover the down payment and the closing costs, so they’ll ask you to contribute toward their closing costs—about 2% to 3% of the sales price to be applied as a buyer's credit at closing is a common request.  If you agree, any contribution you give will lower your bottom line.
  • Closing Date — Settlement, or “closing,” is the day when both parties sign the final paperwork and make the sale official.  Typically, the whole process — from accepting an offer to closing — takes between 30 and 60 days; however, the average closing time is 42 days, according to a report from mortgage software company Ellie Mae.  The buyer's time frame to close may not seem like a big deal on the surface, but it can actually matter a lot, especially if you give the buyer a long leash.  If the deal falls through, you’ll have to put the house back on the market and wait for more offers.  On the other hand, if the buyer wants to move in right away, you might be left scrambling (and, quite possibly, having to rent a home for a short time, or even worse, move in with family, ugh).  Whether you want a slow or quick settlement will depend on your circumstances.  If you’ve already purchased your next home or are under contract on the new home, for instance, you probably want to close as soon as possible.  On the other hand, you may want a longer closing period — say, 60 days — if you have not yet found your next home to purchase or if you need the proceeds from the sale to purchase your new home.  We will work to make sure the timing works for you.
  • Buyer Financing or Proof of Funds — The purchase agreement will establish a deadline (usually a few days) for the buyer to provide a "pre-qualification" or "pre-approval" letter from their lender stating that the buyer has applied for financing and has obtained preliminary approval to finance the purchase price.  While this letter is no guarantee the buyer will obtain final loan approval which is an important contingency (addressed below), it is a good indication of their creditworthiness.  Cash buyers will provide documents to show they are in possession of adequate funds to complete the purchase.  A good buyer's Broker will provide this information with the initial offer to strengthen their client's chances of having their offer accepted.
  • Contingencies — Most purchase agreements have contingencies, provisions that must be met, subject to deadlines, before the transaction can be completed, or the buyer is entitled to walk away from the deal with their earnest money deposit (EMD).  Most contingencies offer protection to buyers, I will work to keep the purchase agreement free of unnecessary contingencies if possible.  Contracts with fewer contingencies are more likely to reach closing, and close on time.  Below is a list of common contingencies that must be satisfied by their deadlines in order to complete the sale of the home:
    • Home Inspections — The buyer will have a set number of days after the offer is accepted to complete inspections of the property with licensed or certified inspectors.  If inspections reveal something is wrong with the house, the buyer can request you make repairs - but most repairs are negotiable; you may agree to some, but say no to others.  Or you can offer a price reduction, or a credit to the buyer at closing, based on the cost of the repairs.  Just remember to keep your eye on the big picture.  If you and the buyer are bickering over a $500 repair to the hardwood floors, keep in mind that’s a drop in the bucket in relation to the price of the home.  This is another instance where I can offer real value and counsel you on what you might agree to repair.  Click the following link for a list of common inspections: Inspection, Warranty Information (These are the most common home inspections in our market but this list is not intended to be all inclusive.)
    • Seller's Property Disclosure — You are required by law to disclose any known adverse material defects to the buyer.  I will provide a form for you to complete that details any current property issues and a history of updates or repairs while you have owned the home or that you have actual knowledge from your original purchase.

    • Financing — The buyer has a specified amount of time to get final approval of their loan to cover the mortgage.

    • Appraisal — In order for a mortgage lender to approve a the buyer’s loan, the home must pass appraisal — a process where the property’s fair-market value is assessed by a neutral third party to ensure the home's value is sufficient collateral for the value of the mortgage.  In the event the appraised value is lower than the previously negotiated purchase price, either you can choose to reduce the purchase price, the buyer may elect to pay the difference as additional down payment or the purchase agreement is terminated.

    • Title — Before approving a mortgage, a lender will require the borrower take ownership with a “clear title”.  The title company reviews any potential easements or agreements that are on public record, verifies that you can legally convey ownership to the buyer without liens and if title insurance can be issued to the buyer, with or without conditions.  The title company will also provide a chain of title and the Covenents, Conditions & Restrictions (CCRs) of the subdivision for the buyer's review.  This also ensures the lender is protected from ownership claims over liens, fraudulent claims from previous owners, clerical problems in courthouse documents, or forged signatures.  I am bound by ethics that title insurance be provided to the buyer in every transaction.

    • Homeowner's Insurance — The buyer applies for and determines if they are able to obtain a quote at normal and customary premium rates and that your claim history has no impact on their insurance in the future.

    • Survey — The survey will identify lot size or acreage, lot boundaries, location of improvements, encroachments and easements.  The buyer has a choice of ordering a new survey or accepting an existing survey subject to approval of the title company and lender.  A new survey may be required depending on the buyer's chosen mortgage product.

    • Property Tax — The buyer has an opportunity to review an estimate of the property taxes based on the list price of the home.

    • Buyer's Sale — Depending on the buyer’s financial situation, their offer may be contingent on the sale of the buyer's current home.where the transaction is dependent on the sale of the buyer's current home.  This puts you at a disadvantage because you can’t control whether the buyer sells their house in time.

    • Lead-Based Paint (LBP) — If the home was constructed before 1978, I will provide a form for you to disclose any actual knowledge or reports of the existence of lead-based LBP.  The buyer may choose to schedule a specific LBP inspection.

    • HOA/Condo Association — If the home is located in a Homeowner's or Condominium Association, you will provide a disclosure of the association's financial health, benefits and dues.

    • Public Improvement District (PID) — If the home is located in a PID, you will provide a disclosure of the amount and duration of the payments required.

    • Well/Septic System — If the property contains a well or septic system, the state requires they be inspected before a change of ownership can occur.

These contingencies are fairly standard for most purchase agreements in New Mexico — that being said, contingencies are always negotiable.  But keep in mind, if the buyer requires financing to complete the purchase (and most do), loan approval in the financing contingency is mandatory and mortgage lenders require borrowers to have the appraisal contingency, or they won’t approve the loan.  The buyer's sale contingency tends to be used more often in strong buyer’s markets, when buyers have greater leverage over sellers.  It’s ultimately up to you to decide what you’re comfortable agreeing to, and I can help you make those decisions.

Other items to be analyzed and considered are:

  • Earnest Money Deposit (EMD) is a sum of money the buyer puts down as evidence to you that they’re serious (read: earnest) about buying the house.  A standard EMD is 1% to 3% of the sales price of the home ($2,000 to $6,000 on a $200,000 home).  But depending on how hot the local market is, they may want to put down more earnest money to compete with other offers.  If they complete the purchase the earnest money will go toward their closing costs or down payment at closing.  However, if they try to back out of the deal without a legitimate reason, they might have to forfeit the cash to you.  In most cases, the title company is responsible for holding the earnest money in an escrow account.  In the event the deal falls through, the title company will disperse the funds appropriately based on the terms of the purchase agreement.
  • Time Off Market Fee (TOM Fee) is a tool buyers can use to avoid putting their EMD at risk while conducting their initial investigation of the property.  The TOM fee is a negotiated sum of money, usually 0.1% to 0.2% of the sales price of the home ($200 to $400 on a $200,000 home), paid by the buyer to the seller within a day or two of the date of acceptance of the purchase agreement.  The TOM fee compensates you for taking the property off the market while they review the Seller’s Property Disclosure and conduct inspections, and if applicable, to resolve any objections they may have to the TOM fee inspections.  During this time, you will not be able accept any other offer to sell the property, except a back-up offer.  Upon the successful completion of the TOM fee inspection process, they will submit their EMD for the balance of the purchase agreement contingency process.  Whether the buyer completes the purchase, or if they terminate the agreement for any reason, you still retain the TOM fee.
  • The Down Payment — Depending on the type of mortgage, the buyer must make a down payment on the house — and the size of that down payment can be an indication of the strength of the offer.  Generally, a larger down payment signals the buyer's financial ability to complete the sale.  If, by chance, the appraisal comes in lower than the negotiated sales price, the buyer with a higher down payment would more likely be able to cover the difference with the large amount of cash they have available.  The average down payment is around 10%, according to the National Association of Realtors®.  In most cases, a buyer’s down payment amount is related to the type of loan they're using.  Some mortgage products, such as FHA and VA loans, allow for even lower down payments.  Your main concern as a seller, of course, is for the transaction to close — and for that to happen, the buyer’s mortgage has to be approved.
  • An All-Cash Offer All-cash offers are ideal for both parties.  Since the buyer doesn’t require loan approval, the finance contingency is eliminated.  Even though an appraisal is not required, if the cash buyer elects to require an appraisal, the appraisal contingency still applies where if the appraised value is lower than the previously negotiated purchase price, either you can choose to reduce the purchase price, the buyer may elect to pay the difference or the purchase agreement is terminated.  As always, having a purchase agreement with fewer contingencies means there are fewer ways for the deal to fall through.

When it comes to evaluating offers, what’s good for the goose may not necessarily be good for the gander.  One seller may be overjoyed with their offer, while another may be disappointed.  That means, in order to figure out whether an offer you receive is “good” — and whether you should negotiate — we’ll need to do two things:

  • We will think back to your original goals, and determine whether this offer helps you meet them.
  • I will provide professional advice and suggest ways to help get the best deal for your specific situation, wants and needs.

 

 

What do you need to know before we begin negotiating with a buyer?:

We’ve got answers to some commonly asked questions.

The negotiation process can be one of the most exciting parts of selling a home, but until you get there, you may be wringing your hands, worried that you won't be able to secure the deal. Will you be deluged with offers, or will your home be pervaded by the lulling but ever-so-unnerving sound of crickets?

What Should a Seller Prioritize?

Before you start negotiating, you’ll want to know what you’re hoping get from the buyer. Obviously, money is important. But it’s not everything. There are other factors to consider when crafting a counteroffer, particularly timing.

So, sit down with your agent and have an open discussion about your goals. Do you want more money? A faster closing period? Fewer contingencies? When you review these types of questions with your agent before you respond to an offer, and have a crystal-clear sense of your priorities, the negotiation process will go a lot more smoothly.

Who Has More Leverage?

Ready to play hardball? Hold up, slugger. First, you have to consider your position on the field. How much negotiating power do you really have? The answer depends on several factors.

A lot depends on your local market conditions. If you’re in a buyer’s market — meaning the supply of homes exceeds demand from buyers — you may have to make some concessions to secure an offer. If you’re in a sellers’ market —  and homes are flying off the proverbial shelves,  selling at or above list prices — you may be able to persuade a buyer to offer more money for the house, for instance, or to let go of some contingencies (aka provisions that must be met for the transaction to go through).

Your timetable will also impact whether you have the upper hand. If you’re not in a rush to sell, you may be free to negotiate more aggressively. If you’re in a time crunch because, say, you already bought your next home and don’t want to pay two mortgages at one time, your hands may be tied.

In any case: Confer with your agent. They can help you objectively assess your position and determine the right negotiating strategy.

When Should You Make a Counteroffer?

Depending on the circumstances, you may be in the position to make a counteroffer. But every transaction is different, based on the particular market conditions and your home. In some circumstances, you can be gutsy with your counteroffer. In others, it might serve your goals better to give in to the buyer’s demands. Your agent can provide helpful insight about when and why a counteroffer will be the right thing for you.

For instance: If you’re in a seller’s market — meaning that homes are selling quickly and for more than the asking prices — and you received multiple offers, your agent may recommend you counteroffer with an amount higher than you would have in a buyer’s market. 

If you choose to write a counteroffer, your agent will negotiate on your behalf to make sure you get the best deal for you.

A caveat: In many states sellers can’t legally make a counteroffer to more than one buyer at the same time, since they’re obligated to sign a purchase agreement if a buyer accepts the new offer.

When to counter

The negotiation process doesn't end here. You always have the option to return the buyer’s offer with a counteroffer of your own.

When you receive an offer, you can accept it as-is, reject it outright, or make a counteroffer — a move that opens negotiations with the buyer.

Unless you’re being offered an amount equal to or above the full listing price, many buyers expect you to make a counteroffer — which is why a lot of people make an initial  And why a lot of buyers make an initial offer that’s lower than what they’re ultimately willing to pay.

“You should always counter if the price is not what you are looking for, or if you can’t support the amount of closing cost help they are looking for,” Baumbusch says. But if you do, keep it reasonable. If the buyer was 15% below asking, he probably won't go up to full asking amount. Consider being flexible with your price; you can always make it up in other ways. For example, submitting a counter with a slightly higher price and contingencies that may help you—like having the buyer waive an inspection to speed things along—might pay off in the end.

If you don’t agree with the buyer’s contingencies, consider your position first before making the next step in the negotiation process.

“If your home is in a popular area, [you] have an advantage,” Baumbusch says. Keep in mind, the buyer may not accept your counter outright. You can play Let's Make a Deal, but always consider your bottom line. Is it worth it to keep countering for a small amount of money or single contingency? Don't get trapped in a loop; consider the buyer's side of things. These prospective buyers may be maxed out. To help you decide, ask your agent to call the buyer's agent and hash it out it with them. Get some insight into the buyer's state of mind, and whether he can budge.

Once you've accepted an offer, it's time to close. Scary, we know! But we've got you covered.

When you make a counteroffer, the buyer can either accept the new offer, reject it, or make a new counteroffer. (Sound familiar?)

This volley can go back and forth, and potentially end in a stalemate — unless you or the buyer put an expiration date on your counteroffer. This can be a smart strategy for you as a seller because it puts pressure on the buyer to make a decision. It also gives you the ability to move on to the next bidder if the buyer tries to stall (chances are, they’ll do this so they can look at more homes without giving yours up).

It’s not unusual for the first offer to be best one — depending on market conditions, of course. And often, sellers see the most interest from buyers in the first month of the home being on the market. 

If you get a good offer right off the bat, start negotiating. You may get a better offer. On the other hand, you may not.

The actual negotiation is the job of your agent, who will be experienced in real estate deal-making. That being said, you should still strategize with your agent before they make that counteroffer for you. Here are five ways you can nab a better deal:

  1. Avoid making an emotional decision. It’s easy to get caught up by the emotional bond you’ve formed with your home. The backyard just might be where you got married. And that cozy office could be where your small business was born. But the important thing to remember is this: You have to detach yourself from your home. This is business — nothing more.
  2. Know your bottom-line. Before moving forward, figure out what you need to get from the deal, at a minimum. That will give your agent a baseline when opening negotiations.
  3. Negotiate a “clean” offer. You want an offer with as few contingencies as possible, since contingencies give the buyer the opportunity to back out of the deal. But some contingencies — such as an appraisal, an inspection, or a financing contingency — can’t be waived by home buyers who are obtaining mortgages because they’re typically required by a mortgage lender in order to approve the loan. Still, if you have multiple offers to choose from, you may be able to persuade a buyer to waive certain contingencies, such as a radon contingency or termite inspection contingency.
  4. Offer a home warranty. In a buyers' market, a low-cost way to make a deal more appealing to a buyer is to offer a home warranty — a plan that covers the cost of repairing home appliances and systems, like the air-conditioner or hot water heater, if they break down within a certain period of time (typically a year after closing). Home buyers love this extra security blanket, and the standard one-year basic home warranty will only set you back about $300 to $500.
  5. Don’t overlook the closing date. Typically, the sale process — from accepting an offer to closing — takes about 30 to 45 days (sometimes a little longer). But in most cases, the faster you can close the better. Especially if you need cash to buy your next home. A quicker closing period has to be feasible for the buyer, however, and some types of home loans take longer to obtain than others.

Should I Start a Bidding War?

If you have more than one offer on the table, you might be tempted to pit buyers against each other and watch them duke it out for your home. (Anyone who’s seen The Bachelor knows that kind of drama can be fun, after all.) But think twice before you do: This strategy can backfire. Buyers may walk away in frustration.  if you’re going up against multiple offers, making an offer with fewer contingencies can potentially give you an edge over the competition.

Rather than starting a bidding war, ask all buyers to come back with their “best and final” offer by a certain deadline (say, within the next 24 hours), and then choose the one that’s right for you.

Remember: It’s Good to Give and Receive

At the end of the day, receiving an offer is a good thing! It means you’re getting closer to a sale. But remember, you may have to give a little in the negotiations, too. Keep your head on your shoulders — don’t make an emotional decision — and you’ll be all the more likely to get what you want.

 

 

A bid from you that's too low may offend sellers emotionally invested in the sales price, a bid that's too high may lead you to spend more than necessary to close the sale.  The goal is to arrive at an initial offer amount that engages the sellers yet keeps money in your wallet.

Several other factors can also affect your bargaining position and offer price.  I will investigate and attempt to obtain information to help you understand the sellers’ financial position and motivation as much as possible.  The more signs that sellers are eager to sell, the lower your offer can reasonably go (but the opposite is also true).  For example, if the home has been sitting on the market for a while, or the home was previously under contract but the sale fell through, the seller may be willing to accept an offer that’s below list price.  On the other hand, if you’re in a seller’s market where buyer demand exceeds supply, or the seller has already received another offer on the home, that may impact the price you’re willing to offer.

If you’re making a lowball bid or going up against multiple offers, the seller may decide to make you a counteroffer — amending your original purchase agreement with new terms, such as a higher sales price or fewer contingencies.  At that point, it’s up to you to accept the new contract, make your own counteroffer to the sellers, or walk away.  In a multiple offer situation, the seller may even request you submit a new purchase agreement offering your "highest and best" terms.  Consider any movement by the sellers, however slight, a sign of interest, and keep negotiating.  Each time you make a concession, ask for one in return. If the sellers ask you to boost your price, ask them to contribute to closing costs or pay for a home warranty for example.  If sellers won’t budge, make it clear you’re willing to walk away; they may get nervous and accept your offer.  Great homes and those competitively priced can draw multiple offers in any market.  Don’t let competition force you to go beyond your pre-determined price or agree to concessions — such as waiving an inspection — that aren’t in your best interest.

Most real estate offers include contingencies — provisions with deadlines that must be met before the transaction can be completed, or the buyer is entitled to walk away from the transaction with their earnest money deposit (EMD).  Sellers favor offers that leave little to chance.  We will work to keep your offer free of unnecessary contingencies if possible.  Although contingencies can offer protection to buyers, they can also make offers less appealing to the seller because they give buyers legal ways to back out of the sale without any financial repercussions. So, if you’re going up against multiple offers, making an offer with fewer contingencies can potentially give you an edge over the competition.

Closing Costs — The party responsible for paying each individual closing cost is completely negotiable, although the lender and the loan product may have some restrictions.  Sample closing costs shown in the table below include approximate fees, if available, and are marked as "customarily" paid by one party or the other as determined in our local market.

Closing Costs

Fees shown are estimates and may be subject to NMGRT. Actual costs depend on sales price, lender, lender product, title company or other vender.

 

Conventional

FHA

VA

Cash

Assumption

 

Buyer

Seller

Buyer

Seller

Buyer

Seller

Buyer

Seller

Buyer

Seller

LOAN RELATED COSTS AND FEES 1

 

 

 

 

 

 

 

 

 

 

Appraisal Fee

-

500

500-Negotiable

500-Negotiable

-

-

-

-

Appraisal Re-inspection Fee

-

-

250-Negotiable

-

-

-

-

-

-

Credit Report

50

-

50

-

50

-

-

-

35

-

Loan Assumption / Transfer

-

-

-

-

-

-

-

-

Consult Lender

Origination Fee (1-1.25 % of loan)

X

-

X

-

X

-

-

-

-

-

Points - Buydown (% of loan)

Negotiable

-

X

-

X

-

-

-

-

Points - Discount (% of loan)

Negotiable

Negotiable

Negotiable

-

-

-

-

Tax Service Fee

25-Negotiable

-

78

-

25

-

-

-

-

VA Funding Fee (maximum 1.25% of the loan)

-

-

-

-

X

-

-

-

-

-

Flood Zone Certification

20

-

20

-

20

-

20

-

20

-

 

1 Buyer shall pay all other allowed direct loan costs

PREPAIDS REQUIRED BY LENDER

 

 

 

 

 

 

 

 

 

 

Flood Insurance (14 mos-varies)

X

-

X

-

X

-

-

-

-

-

Hazard Insurance (14 mos-varies)

X

-

X

-

X

-

100%

-

100%

-

Interest (paid from day of funding to end of the month)

X

-

X

-

X

-

-

-

-

-

PMI (% of loan + reserve)

1%

-

-

-

-

-

-

-

-

-

MIP (% of loan)

-

-

.038%

-

-

-

-

-

-

-

Taxes (3 months)

X

-

X

-

X

-

-

-

-

-

 

 

 

 

 

 

 

 

 

 

 

TITLE COMPANY CLOSING COSTS

 

 

 

 

 

 

 

 

 

 

Closing Fee (425 + 1/M of purchase price)

-

X

-

X

-

X

Negotiable

Negotiable

Pro-Rata Data Search

 

 

 

 

 

 

 

 

 

 

Legal Document Prep (eg. REC)

200-Negotiable

200-Negotiable

200-Negotiable

50%

50%

50%

50%

Special Assessment Search

-

50

50-Negotiable

50-Negotiable

-

50

-

50

Buyer Recording Fees

50

-

50

-

50

-

25-Negotiable

50

-

Seller Recording Fees

-

25

-

25

-

25

25-Negotiable

-

25

E-File Fee

10

5

10

5

10

5

5/Document-Negotiable

10

5

Transfer Fee

17.50

17.50

35-Negotiable

-

35

17.50

17.50

17.50

17.50

Remote Notary Service (varies)

Paid by the party needing service

Courier/Express Mail Fee (varies)

Paid by the party needing service

Wire Fee

Paid by the party needing service - 20

 

 

 

 

 

 

 

 

 

 

 

POLICY PREMIUMS

 

 

 

 

 

 

 

 

 

 

Title Commitment

100-Negotiable

100-Negotiable

100-Negotiable

100

-

100

-

Owner’s Title Insurance Policy

-

X

Negotiable

Negotiable

-

X

-

X

 

(varies + NMGRT) (200,000 purchase price = 1,199 - 300,000 purchase price = 1,646)

Lender Policy

100

-

100

-

100

-

-

-

-

-

Lender Endorsement - Survey

50

-

50

-

50

-

-

-

-

-

Lender Endorsement - Mech lien

50

-

50

-

50

-

-

-

-

-

Lender Endorsement - Additional

25 ea

-

25 ea

-

25 ea

-

-

-

-

-

 

 

 

 

 

 

 

 

 

 

 

MISCELLANEOUS

 

 

 

 

 

 

 

 

 

 

Survey

200-Negotiable

200-Negotiable

200-Negotiable

200-Negotiable

200-Negotiable

Pest/WDO Inspection

100-Negotiable

100-Negotiable

-

100

60-Negotiable

-

-

HOA/COA Transfer Fees

Negotiable (determined by association)

HOA/COA Disclosure / Certificate

Seller (determined by association)

Property Tax Proration

Credit

Debit

Credit

Debit

Credit

Debit

Credit

Debit

Credit

Debit

Broker Commission

-

X

-

X

-

X

-

X

-

X

 

Essential Tips for Successful Real Estate Negotiating

1. The market dictates the balance of negotiating power.  I will try to help you recognize your position and adjust your negotiating style to match the strength or weakness of it.
2. We will attempt to determine if the negotiations are going to be collaborative (win-win) or competitive (win-lose) and use the proper negotiating style.
3. I will try to help you understand the personality types of the other Broker and their clients.  We will decide how I can best communicate with them effectively.
4. We will identify areas where we think you will be able to come to agreement.  We'll begin by aiming where you are going to end up.
5. We'll start negotiations at a level that will get a response, but leave room for future give and take. Your first position is important and will affect the final results.
6. We will adapt your negotiation strategy in a multiple-offer situation.  I will try to help you get an auction going and choose the buyer most likely to close.  You will need to adjust your style based on the number of offers.
- During the Negotiation
7. Keep hostile emotions in check.  As your Realtor, I will be a shock absorber and use positive emotions to support your proposal.
8. We will not accept the first offer unless there is an overwhelming reason.  If you accept the first offer, they will feel they could have done better.  Also, the first offer is seldom the final offer.
9. We will develop a game plan and identify issues likely to come up and a plan for solving them.  We'll save something unimportant to you that you can give away as a concession later.
10. If we receive a low offer, we need to determine the most effective way to respond.  Will you be more likely to get a favorable response with a rejection or a courtesy counter-offer in the given situation?
11. We won’t give up easily.  We'll try again and if it isn’t working, walk away slowly.  We won’t burn bridges in negotiation - things change, sometimes unpredictably.
12. When it comes to negotiation on repairs, the market and your alternatives will guide us in how to proceed on the spectrum from “as is” to “fully repaired.”
- Finishing Strong
13. Just before closing, we'll nibble for one last victory.  It never hurts to ask and it might pay off.
14. We won’t give the other side what they want before getting what you want.  We'll confirm all concessions ASAP.
15. I will try to help you anticipate last minute issues that could arise just before closing.  Preparation is essential.



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