Guide To Seattle Real Estate

Figuratively, of course. When receiving an offer that is too low, and they all are these days, it is important to use everything you can to get an edge on your competition. Negotiation tactics are an edge that all top producing agents have.  This post is the second in a series on Negotiation tactics and real estate.

When an initial offer comes in the correct reaction is to “flinch.” You want the bearer of the offer to feel like they just dropped a brick on your foot. “Ouch!”  Then wait. Don’t say anything. Nothing. Silence, is the next move. Almost like you are waiting for an apology from the brick dropper. Wait until they talk next, no matter how long it takes. I have waited so long that people have asked if I was still on the phone, like it was a dropped call.

When I am shopping in the grocery store and I accidentally bump someone with my cart, my first reaction is to apologize. I have actually had agents, after dropping a brick on my foot, apologize for their offer. What?! Who is selling who? While agents often “feel” each other out over the phone to gauge where and how far they can push a situation, they should never apologize. Making an offer is not like bumping into someone in a grocery store. Apologizing is admitting that the offer is too low or high as it may be.

Negotiating real estate contracts are often a “quid pro quo ” game. I’ll give you this if you give me that. The flinch offers an opportunity to get a little for nothing. I have even heard of agents offering to increase their asking price right over the phone when faced with the flinch and a nice long pause. This is not the norm and many good agents know and understand these tactics. Does yours? Ask your agent what their response is going to be to this situation, before you hire them.

When entering into negotiations you had better know your Set Point. Without knowing your Set Point your just shooting in the dark aimlessly with no real stragety.  A good agent can smell this a mile away and counter effectively.  I will talk more about what and how to determine your Set Point tomorrow, stay tuned.