Sellers have plenty of reason to be emotional during the final negotiation. They’re undergoing changes, making huge decisions, and dealing with transactions that involve major (if not the most major) investments they own. Your role in this environment, and the key to your success, is twofold: Be prepared and protect the seller at every step along the way.
Be prepared
Careful preparations before you present a buyer’s offer to your client can shorten the meeting, help you craft a better counteroffer, keep seller emotions in check, and focus your client’s attention on the next important steps in the sales process. Prepare yourself for negotiations by following this advice
- Remain calm no matter how high or low the offer starts.
- Go through the buyer’s offer carefully and note any key issues that need addressing.
- Flag any contract points that merit your seller’s attention so you can easily reference them during the meeting. If you’re emailing the document to your client, also summarize the key points on the email so that your seller doesn’t have to dig through every line of the contract.
Protect the seller at all times
The worst thing that can happen to a seller is to have the transaction fall apart a few days before closing. By then, the seller is emotionally invested in another property and has already made plans to move. He is excited about the future. And then, when everything falls apart, and everyone loses market time, marketing momentum, and a considerable investment of time and money.
Even the most thorough approach results in a broken deal once in a while. By taking the following precautions, however, you can do a better job of protecting your client and you can keep disasters to a bare minimum
- Require the prospective buyer to deposit enough earnest money to secure your client’s position. Set the earnest money high enough to make it difficult for the buyer to purchase another home if he walks away from the deal after all contingent conditions are satisfied.
Require the buyer to provide proof of loan approval with no conditions if the buyer is buying on loan. Remember at all times that your job is to protect and secure the interests of your client, the seller.