When you are buying or selling a home, recognize that you will be negotiating against TWO potential opponents, not just the seller/buyer in your transaction and the end result of your negotiations could improve significantly.

In almost all real estate transactions, you have one or more "silent opponents", very often a skilled negotiator, whose opinions are trusted by the person(s) you thought you were negotiating with. The first "other person" is their professional real estate agent.  Without realizing what is happening, the normal buyer and seller in a transaction often rely heavily on the advice of their agent throughout the home transfer process.  Many agents, especially seasoned agents, tend to exert considerable control over how the negotiations proceed. Unfortunately, agents strive to have negotiations go the way they have experienced transactions go in their past.

When you are buying, if you want certain items to be included with the sale or a preconceived percentage off of the asking price which are not customary in our market place, you will likely have an uphill battle on your hands. Simply put, the other broker knows what is "customary" in our market place and will strongly influence his/her clients to respond accordingly.

The best way to negotiate your contract is by minimizing the effect the other broker will have on your transaction.  By eliminating non-essential requirements (often agent "hot buttons") from the contract, you can achieve a significantly superior end result to your negotiations.  An example of agent "hot buttons" would be a buyer asking the seller to pay for the appraisal, home inspection, a home owner´s insurance warranty program, HOA transfer fees, or to give possession immediately at closing if the home is still occupied. Since they not "customarily" done in our market, you might be best advised not to request them in your contract. 

Although the points mentioned above may seem rather insignificant, they can be insurmountable with many agents.  Agents can turn their clients into a non-negotiable state of mind with a simple statement like "We just don't do business this way."  You have a much stronger negotiating position if you know all of the local customs and the typical agent's "hot buttons" before you write your offer.  You should consider eliminating the less consequential "hot buttons" from the contract and focus more on the important bottom line items like price, possession date, and needed repairs.

A really big "hot button" for listing agents is to receive an offer that is perceived to be too far below the asking price. Sellers and their agents often forget that it is just an offer and part of a business transaction not intended as an insult to the seller or the broker. Knowing what will not offend the seller and listing agent is very important to the final contract price you will be paying for the home. 

I find a friendly discussion with the listing broker about many areas of the contract to be very helpful when advising my clients on how to write their offer.  When approached in a coorporative friendly manner, listing agents frequently give out way more confidential information than they should. This information can greatly improve the outcome of your contract. If nothing else, the listing agent will provide a good indication of the terms they think will work for their seller and that they are also comfortable with.  All of this knowledge and input can be extremely valuable to you when you are negotiating a contract.
 
Since 1978, I have assisted over 2,000 clients with their negotiations to buy or sell a home.  Here are some other critical factors to successful negotiations you may want to consider:

1. Learn how to identify the driving factors (motivations) your seller/buyer are dealing with before writing an offer as a buyer or responding to the offer if you are the seller.  The more you know about your opponent in a transaction the better the odds are of maximizing your outcome and achieving your goals. 
Many of the true motivations of a buyer/seller are very difficult to determine without asking the right kind of questions in the right way.
2. The timing for presenting your counter proposal can be critical to your success.  This is a very powerful technique that can either make you - or cost you thousands of dollars, depending on your skills. 
3. How to structure and respond to a multiple offer situation  and come out the winner if you are the buyer is important to know.  If you are the seller, there is a wonderful strategy that I have used many times to get the buyers to submit second and third offers.  Each time bidding the price up well above their initial offer and well above the market value of your home.
4. How to defuse strong personalities - either the seller's/buyer's OR the other broker's.  The more relaxed the negotiation process is the better your outcome will be.  Taking control of the entire negotiation process is very important to your success.

Be sure to review TESTIMONIALS where you will learn more about what results you can obtain.  Here is a sample:

"Bill knows what to do and he does it right!  His negotiating skills are worthy of a diplomat!  We worked with other agents before him, but Bill is truly a master of his trade.  We achieved our goals in a very complex sale because of his expertise."

Mark & Elizabeth Turner

If you would like additional ideas on what we have found works best in contract negotiations, simply call us at 303-880-4944 or e-mail us.  

When it comes to YOUR Metro Denver Real Estate needs, why accept less than extraordinary assistance?