David Bruce

March 29th, 2010

Real Estate Negotiation in Richmond

Working with clients in Real Estate transactions, we see a variety of negotiation styles and strategies.  Usually you can categorize them one of two ways.  A cooperative approach or a combative approach. Which approach is more effective?

Our experience in the Richmond area shows that the cooperative style is the most effective and efficient way to complete a real estate transaction. Professional negotiators usually try to preserve the relationship between the parties, and work together to resolve problems. The goal is not to draw a line in the sand and reach an impasse, it’s to get you the home you want at the best possible price. Buyers sometimes through their REALTOR position an offer to the seller describing why their house is not worth what they are asking, pointing out deficiencies, etc. This can backfire, and start the negotiation off with a defensive seller. It is best to anchor your price to the Richmond marketplace, while remaining very complimentary of their home in the communication your REALTOR has on your behalf.

How do you work with a combative strategy by a seller?

We do see the combative style. This strategy includes: negative comments, emotional statements, table pounding, threats to walk away, ego involvement, and stated positioning like last offer. Creative solutions and trade offs are not as likely to be found in this environment. Working with a combative style negotiator requires a different, calm and strategic approach when buying Richmond area real estate.  Here are some suggestions:

• Do not respond emotionally. An angry or defensive response/counter offer can escalate the process into a no-win battle.
• Do not argue. Having your REALTOR argue on your behalf usually positions them more strongly and drags the negotiation process off course.
• Do not ignore their arguments or statements. Listen carefully to feedback your REALTOR gives you from the selling agent, but do not accept or reject.  Try to understand it so your next counter is more effective
• Firmly anchor pricing and other terms to outside data based on the Richmond area neighborhood or area the home is in. Have your REALTOR show that the price has not been chosen arbitrarily or by emotions.
• Do not allow hazy or unclear proposals to stand. If you don’t understand the details, ask your REALTOR for clarification and always get it in writing.
• Offer some “wins” on some of the terms. Face saving is very important to a combative seller.
• Look for ways to meet their underlying interests. Read between the lines and try to understand what is driving their combative approach.

Sometimes you need to give a little to get a lot!  Thinking of buying or selling a Richmond area home?  Skye Bruce Properties has a team of accomplished real estate negotiators to help you find that special Richmond home and get it at the best price.  Contact Skye Bruce Properties to learn more!

This entry was posted on Monday, March 29th, 2010 at 8:32 pm and is filed under Buying A Home. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.

Leave a Reply

Name (required)

Email (will not be published) (required)

Website