Buyer Negotiation Strategies

Sellers spend their time, energy and money to get their home ready for the market. When the home goes into the multiple listing service, they are excited because they are moving. However, it’s just the beginning of the negotiations.

Buyers are using different strategies to ensure their offer is accepted by the seller when there are multiple offers on a property. For example, one of the strategies is to offer over the asking price and hope that necessary repairs will be discovered during the inspection period or the appraisal will be less than the sales price. Buyers will ask for a substantial credit as an opportunity to re-negotiate the price with the seller.

To help our sellers combat this tactic, we suggest that when they receive multiple offers, is to accept a second offer in the back-up position. This provides the seller with leverage. When the buyer’s inspection negotiation strategy comes up, the seller can move on to the buyer who is in the back-up position if they aren’t able to come to terms. With advance planning, the buyer negotiation strategies can be avoided.

Some transactions can die because of last minute demands from buyer. Recently, we had a transaction where the buyer offered over the asking price and during the inspection period, they asked for a huge chunk off the price. Luckily, we had an accepted offer in the back-up position and my client declined the buyer’s request. The seller moved on with the buyer that was initially in the second position and the transaction closed.

Tune in to KXL‘s “Experts on the 19′s” every Monday morning at 6:49AM and 8:49AM and listen to real estate advice from Portland’s Real Estate Advisor, Rick Sadle.

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