Buying a home or selling one in Morris County, NJ requires real estate negotiation strategies that bring winning deals. But it can be as difficult as learning a new language. The rewards – in terms of the best buy, or a good sale – are great, however.
The following real estate negotiation strategies for buyers and sellers will help you navigate through the process with ease.
- Familiarize yourself with the market
- Find a common ground
- Prepare a counteroffer
- Use the power of contingencies
- Hire a real estate agent
Knowledge is key. Buyers must study market trends, be familiar with average listing and selling prices, demand-supply forces, and sales dynamics. They must check out recent sales in the area and how long houses stay on the market before they’re sold. Buyers must be alert about seasonal changes that might affect the market. They must set a budget that allows them to buy a home in the area they wish to move to.
Sellers must know the comparable sales in the neighborhood to set the right price for their property. They must understand buyer behavior. What are their priorities? Their deal breakers?
Familiarizing yourself with the market is also about knowing hidden factors – policy changes, shifts in neighborhood dynamics and others – that affect buyers and sellers.
Pro tip: Have a trusted local Realtor do the heavy lifting for you.
Work as a team.
The buyer must listen to the seller to grasp where they’re coming from and the kind of arrangement that works best for them. Is the buyer emotionally attached to the home? If so, adopt the appropriate tone when you write your offer letter. Respect their feelings, and let them know that you will continue the legacy of happy memories the home has given them through the years.
The seller must tune in to the buyer’s concerns. If the home doesn’t check all the boxes, are there features that are similar or just as attractive? Is the seller willing to take on a few repairs? Agree to take on a higher share of closing costs? If warranted or under certain conditions, such gestures will result in a quicker sale and build goodwill among all parties.
Pro tip: Have the buyer’s agent and seller’s agent handle most of these negotiations for efficiency, legal protection, and reduced emotional attachment.
Buyers must be ready to discuss terms other than price – contingencies, closing cost, move-in and turnover dates, etc. They must not be discouraged if the seller rejects their initial offer or returns with a counteroffer they may still have issues with. Ideally, the counteroffer should still fit the home-buying budget and does justice to the home’s value, while meeting the seller’s terms. This calls for flexibility and openness.
Pro tip: Navigate the waters with the help of an agent with proven negotiation skills.
Contingencies are conditions or actions required before a deal is done. They serve as safeguards for both buyer and seller, outlining specific conditions that must be fulfilled within a specified timeframe
For instance, buyers who discover a leaking roof can negotiate for a lower price to cover repair costs. Or, they can ask the seller to make repairs.
Sellers can leverage on contingencies too. For example, you might agree to sell your home provided you find another you can purchase within a specific time period. This saves you the trouble of finding a new home at the eleventh hour, or at the moment you get a suitable buyer.
Pro tip: See below.
These seasoned professionals’ negotiation skills are a game changer. Real estate agents possess a lot of experience and insights on the market, buyer-seller behavior and negotiation tactics. These expert mediators promote smooth communication between buyers and sellers. They steer negotiations to a satisfactory conclusion.
Looking for effective negotiation strategies in buying or selling Morris County, NJ real estate? Get in touch with me, Frank DeZao.As a lifelong New Jerseyan, I have in-depth knowledge of the area and the prevailing housing market.
Call 201.953.9376 or send me a message here so I can help you achieve your real estate goals at the soonest possible time!