Some Perspective on Negotiation

One thing I always have to remind Real Estate Buyers and Sellers when negotating a deal on their dream home is to put the purchase price into perspective.  What I mean by that is, when you are negotiating on a multi-hundred thousand dollar home, the last few thousand dollars really make next to no impact on your financing.  Don't get me wrong, I am all about negotiating the best deal. But it all comes down to the monthly payment.  I have been involved in many negotations where the Sellers won't accept anything less that X and buyers won't pay anything more than $2000 less than X.  With current mortgage rates at about three and a half percent, that works out to about $10 per month extra.  I've worked with clients who were willing to walk away from purchasing a home for $10 per month.  That is the question I pose to my clients.  "Are you willing to lose your dream home for $10 per month".  

I do understand that there are different perspectives to every situation and there are some people who say "I have a top value I am willing to pay and not a penny more".  I respect the discipline, but I never hesitate to pose the above question.  In most cases, the client realizes a few thousand dollars is trivial in the long run and go ahead with the purchase. 

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Ryan Souster

Ryan Souster

CENTURY 21 Fusion
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