Here are some of the most popular negotiation tricks that home buyers, sellers and their agents use when involved in the home buying process. Sooner or later, your opponent on you will use some of these negotiating tricks.
The Higher Authority (Double Dip) Trick
Used inside the real estate industry, this negotiation strategy often occurs when a buyer negotiates a home sale as to price and terms. Then, before signing the contract, he says, “This looks good. But I need to run it by my attorney (or accountant, mother, father, grandmother, etc.).” Oh oh! This is the trap.
To prevent this from happening, it’s wise to ask, “Is there anyone not present who must approve this transaction for us to proceed?”
It’s an absolute must to have ALL parties involved present at the negotiation. There are exceptions, but very few should be made. Whenever a sale or purchase is subject to approval of another person, especially if that individual is financially involved by paying all or part of the down payment, if the contract says it is subject to that third party’s approval, there’s no sale until that “higher authority” approves.
What often happens is the “higher authority” will find something wrong. That’s their job!
When you realize the higher authority negotiation tricks are being used on you, the best strategy is to be firm but friendly. Even if you absolutely must negotiate a transaction, pretend you really don’t care. “Take it or leave it” should be your attitude, but by all means DON’T take the property off the market while awaiting higher authority approval.
Need Help Negotiating the Best Price for Your Dream Home?
Negotiating real estate transactions is what I’ve done on a daily basis for over 15 years. The average home seller or buyer will negotiate for a home an average of once ever seven to ten years. Call Troy Elston with West USA Realty for help with a strategy to save or make the most money possible when buying or selling your next home.