Negotiating – an art and a science

The seller sets the price they want to sell, presumably based on comparables. The buyer makes the offer they believe is fair, also based on comparables. When both the seller and the buyer are within reasonable limits of each other, a ratified contract is the outcome, and both parties move closer to their mutual goal.

This may or may not happen at the first offer. There is a bargaining process that mixes both the emotions and the expectations of the buyer and the seller. For this reason, many buyers decide on not making an offer that they feel could insult the seller. Those times the buyer decides to wait. A prudent Buyer’s Agent, on finding a suitable property for their buyer client, will discuss options with the listing agent to understand if it is in all parties’ best interest to present an offer that is less than what the seller is asking.

Once the offer is signed by the buyer, ideally the Listing Agent will allow the Buyer’s Agent to present the offer along with the rationale for the offer directly to the Listing Agent and the seller. This is in everyone’s best interest since then the Listing Agent distances themselves from the offer and can work with the seller to bring forth a rational next step.

At some point either an agreement ensues or we reach a standoff wherein no one gives up any more negotiation. The latter is an unproductive use of everyone’s time, but can and does happen, even with the best of Realtors. Remember, as humans we act emotionally and justify rationally, not the other way around. When those two intersect, a deal is made.