Homeseller's Guide Part X

Negotiating With A Buyer: Know What You Have

When you want to go on vacation, you might notice that it is virtually impossible to have a successful trip if a) you do not know where you are going, and b) you do not know where you are now. It's pretty much the same with successful negotiations. Unless you know what you have, and what you want, it is virtually impossible to come out a winner in negotiations. You will either try too hard for too much, or not try hard enough to get what you deserve. The former will cause the prospect to pack up and go; the latter will cost you a great deal. It is time to get a grip on just what, exactly, you have that the buyer wants.

During your initial inspection you should have come to a pretty good realization of what you have, but the real work is in presenting it in a way that coincides with what the buyer wants. Before you even begin meeting with sellers you should make a comprehensive list of all the assets and benefits of the property. Does it have a nice view? Is the deck a nice place to relax on a sweet summer evening? Is the tub a Jacuzzi? Is is suited to social events? Is it near schools, shopping or public transportation? By taking note of every conceivable asset and benefit, you are better prepared to present them to the seller in a way he can relate to (we will get into exactly how you will do this in the chapter "Speaking The Buyer's Language").

More important than knowing what you have, perhaps, is the full, unbiased realization of what you DON'T have. Many sellers make the mistake of placing too much value on areas that may have no value - or even negative value, to others. You may think that those notches on the kitchen door frame that indicate your child's growth are priceless, and add charm. But to a buyer, it simply represents another repair he must make. And even that expensive swimming pool in your back yard may not be the asset you think it is - it raises insurance rates, and it can pose a real liability if someone's child should accidentally drown in the pool. And, of course, some people just hate swimming in cold, chlorinated water.

Your objective, prior to starting negotiations, is to look at both sides of everything - not just from your point of view, but also that of a buyer. Forewarned is forearmed. If you know ahead of time which arguments a buyer might use to try and lower the price, the better prepared you will be to counter his argument, or at worst, to accept his argument without having been caught by surprise.

OK, assuming you now know, exactly, what you do and do not have, you need to give some thought to what you really want.

NEXT: Negotiating With The Buyer - Knowing What You Want