Negotiation Lessons from a Recent Purchase

We recently helped a client purchase a great home for their family. The process highlighted a few key elements of successful negotiating.

The clients had been looking at homes for a number of months. We helped with their understanding of the market, and they did a considerable amount of due diligence on which home types and neighbourhoods would suit their needs best (schools, etc.).

In order to put themselves in the best possible position as buyers, they first prepared their home for sale. We listed their home, and once it was sold, the clients were able to kickstart their homebuying process in earnest.

They had a long closing date to work with, so they had some breathing room, and were not rushed into making a decision. Just as importantly, the clients were now comfortable making an offer that was not conditional on the sale of a home.

After reviewing the available inventory, the clients identified a handful of homes that would meet their needs. They selected their preferred home and made an offer that was in line with recent sales in the area.

Although the price was a little lower than the seller's expectations, the other key components of the offer were strong (conditions, deposit, closing date). After some back and forth we were able to come to an agreement with the seller.

There were some issues with the home that needed to be addressed after the home inspection. A third-party professional was able to give our requests legitimacy, and we were once again able to come to a happy conclusion with the seller.

Three elements of strong negotiating are apparent in this story: Well informed Knowledge is power. Know the market, the data, and past sales. Be able to speak to construction, insurance, and mortgages. Leverage third-party professionals where needed. An offer is likely to be more successful if grounded in well researched facts. Compelling The person who makes a poor offer, doesn't budge, and never gets the house isn't a winner. The offer has to be compelling in some way for the other side to want to work with you. Listen to the other side and try to find win-win scenarios where possible. Leverage In this instance, the buyer had leverage because they had the ability to walk away. They knew there were other legitimate options available to them, and they were not feeling pressured by a tight timeline.

This is not an exhaustive explainer on negotiations — just three elements that came to mind when reflecting on a recent transaction. What are some other components of successful negotiations? We'd be happy to hear your thoughts! As always, don't hesitate to reach out with any questions, and we always appreciate your referrals to friends and family. Cheers, Joe, Doug & Randal Real Estate Team