5 NEGOTIATING TACTICS THAT KILL A SALE

Negotiation is a subtle art in real estate, but skilled negotiators can usually find some common ground that satisfies all parties. On the other hand, using the wrong negotiation tactics can sink a deal pretty quickly.

Here are some negotiation tactics buyers (and real estate professionals) should avoid:

  1. Lowball offers: Going far below market value when you make an offer damages your credibility as a buyer and can be insulting to the seller. The seller has a range in mind that they’ll accept, and if you’re not even approaching the low end of that range, they won’t even consider the offer.
  2. Incremental negotiations: Don’t continue to go back to the seller with small increases in your offer ($1,000 or less). The constant back-and-forth can grow tiresome and lead the seller to consider other opportunities.
  3. “Take it or leave it”: Try not to draw a line in the sand with your initial offer. The seller can get defensive and consider other offers if you immediately show that you’re unwilling to budge. Even if it’s true, don’t make a show of it.
  4. Nitpicking after inspection: Obviously if inspection reveals a major issue, it should be factored into the final sale price. But insisting on a lower price for every minor repair can put negotiations in a stalemate.
  5. Asking for more, more, more: Some buyers will request that the sellers throw in add-ons like furniture or appliances that weren’t included in the listing. Try to avoid giving the seller a reason to build up resentment and think that you’re being greedy.

Why Using a Mortgage Broker Can Save You Money

Mtg Broker

Being able to get the house you want should make you very happy. But what if, after you move in, you find out that you may have been able to get a much better financial deal than what you got? Would you still be as happy? It is quite possible to get the best deal in the first place by using a mortgage broker.

Here is how a mortgage broker can save you some money.

It needs to be stated from the start that a mortgage broker will not always be able to get you the best deal, but could, probably, in most cases. Too many people are still accepting the first offer they are given for their mortgage. Getting that good deal, however, takes more than just comparing loans.

A bank lender will only be able to offer mortgage products that their own bank creates. These products, of differing values, are limited.

Sometimes a lending agent may not want to compare the different products his or her bank offers in order to find an exact match for your needs. At other times, a bank agent will work very hard for you.

A mortgage broker, however, only gets paid when a sale is made – in other words – when a mortgage is signed. This means that it is in their best interests to get for you a highly competitive deal.

Mortgage brokers deal with many different lending companies on a regular basis and know what each of them have been willing to do – in the very recent past. When you contact a mortgage broker, there often will not be any fees. They will then get your information from you and send it to  companies they think will give you a very competitive offer.

Another benefit comes from the way that mortgage brokers perform their services. A banker will give you a more institutionalized service, and your interaction with him or her will be more formal.

A mortgage broker, however, will be glad to take more personal time with you, making you feel more welcome and will probably spend more time with you and for you. In fact, he or she may even come to your house.

Mortgage brokers have access to mortgages at a slightly lower price than a banker might provide. This is because they deal with wholesale prices rather than the retail. Their service offered to lenders means a savings for the lender because the lender does not need to maintain sales staff – except when a sale is made.

When there may be a problem with your credit, the value of a mortgage broker can really be seen. Because they know many different lenders and each of their specialties, they can work to find lenders that can give you a great deal.

They would already know which lenders regularly give money to those with bad credit – or whatever special need you may have. A bank representative, however, while still able to offer a number of products, is limited to only what their branch offers and the special deals they give.

And that’s why using a mortgage broker can save you money!