Contract negotiations can be one of the toughest parts of buying a Knoxville home. For most buyers, there is a lot at stake and emotions are running high. This is only increased when you’re buying a home in a competitive market.
It’s important that you’re prepared to negotiate in a competitive market. Negotiating a contract on a house is a bit different than buying a car or haggling on a furniture purchase. When a house is at stake, there are many more emotions in evolved. Sellers have countless memories and have spent time and energy making a house a home. So, when it comes to negotiating with a seller, where emotions are involved and there’s money at stake, it’s important that you understand what they want.
To make your contract negotiations successful, it’s important that you don’t make these critical negotiation mistakes when you buy a Knoxville home.
Yes, you are buying a home. Yes, you should get what you want. But, no, it’s not all about you. Every real estate transaction is bilateral. It’s an agreement between two people. It’s a two way street, where each party gives a little, to get a little, and meet with one end goal in mind.
Any realtor will tell you that the mentality of it’s “my way or the highway,” won’t get you in anywhere with contract negotiations. Sellers won’t want to work with someone who makes it all about them or has unrealistic expectations.
When you try to figure out what a seller might be looking for, you make the negotiations about both parties getting what they want. Negotiations will go much smoother when you have an approach of being open to giving to seller what they want. A seller will also be much more willing to work with you.
Many buyers will also lose negotiation power by spilling more information than they should to the wrong parties. The thing that many buyers don’t realize is that the information they’re giving doesn’t have to remain confidential.
When you hire your own agent, they’re required to keep that information confidential. Unfortunately, many buyers will spill this information to a seller’s agent, who will in turn share it with the seller.
Information about how much you want a home, how much you’re willing to pay for a home, or that you need to move quickly are all things that can give the seller the upper hand. When a seller knows this information, they can use it against you. This is why it’s best to hire your own agent, they will protect your personal information and negotiate on your behalf.
Sometimes in the midst of negotiations, things can get heated and things can get nasty. As a buyer and seller go back and forth with price, sometimes buyers can get the urge to tell a seller everything that is wrong with a home.
A buyer may feel like their price is vindicated because the choice in wallpaper is hideous and the kitchen looks like it hasn’t been updated in 10 years. Still, it doesn’t mean this information needs to be shared with a seller. You risk sending the seller into a tailspin and ruining to deal altogether.
Finally, one of the largest things you can do to kill your negotiation is failing to have an idea of what the current market is doing. As a a buyer, it’s important to know what you’re dealing with.
Is the market hot for buyers or sellers? Do buyers have the upper hand or do sellers? Without this vital information, you don’t have a clear understanding of what negotiation tacts will and will not work. When a market is a buyer’s market, buyers have more negotiation room and vice versa.
Are you thinking about buying a Knoxville home for sale? Please let us know if there is anyway that Knoxville Home Team can assist you. Rick can be reached at 865-696-9002 or via email at [email protected]. Kati can be reached at [email protected] or by phone at 865-696-1888.
If you’re ready to get started on your Knoxville home search, be sure to check out our Knoxville home for sale.
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