5 Ways Home Sellers May Negotiate When You Buy Their Home
by Stuart Neal
on Monday, December 14th, 2020 at 9:01am.
I have noticed that home sellers often demonstrate recognizable negotiation styles when attempting to sell a home. Sometimes the home sellers will use one style throughout the process. Or they may switch things up a bit. They might favour one particular style, but become a bit of a nibbler at the end.
When you are selecting a home to purchase, see if you can recognize their style. Here are the 5 behavioral styles.
1. Win / Lose
Usually this means that they win and the other party i.e., you, loses. You will recognize this style if the home seller shows no concern for your objectives, aspirations, or your feelings. It has been my experience that home sellers favouring this style, are rarely successful. You might also want to look at their circumstances. Perhaps they have unrealistic expectations or are simply not motivated enough to complete a sale with you.
2. Lose / Win
Believe it or not there are folks out there who put the other party first every time. They are super nice people and perhaps even people pleasers, who put the concerns of the other party and in this case you, the potential home buyer, first. They just want the other guy to be happy and as a result, they get what they want, but not without a lot of stress and perhaps worry. Home sellers like this deserve your kindness. Please know that these types of home sellers are rare. In most cases, home sellers want the most money, in the shortest period of time, for the least hassle. If you come across a seller that demonstrates a Lose/Win style, I suggest you ask your REALTOR® to tread gently.
3. Lose / Lose
This is not a situation we see very often, but it exists. I have seen this phenomenon when home sellers are in their worst frame of mind. Perhaps they are in the middle of a bitter divorce and selling the house is part of the matrimonial property dispersal. The home sellers may become confrontational toward you or your REALTOR® if there is something in the offer they do not like. Behind the scenes, one of the sellers may become confrontational toward the other seller, just because of the situation, often shooting themselves in the foot, with no other goal than to get even. It has been my experience that home sellers like this may be just as combative with their own REALTOR®. Ultimately, this behavior is in no one’s best interests and perhaps home sellers who are demonstrating this type of negative behavior, should be avoided. Unless of course they own the house, you would really want to live in, in which case I suggest you tread lightly and with patience.
4. Win / Win
By far, home sellers that demonstrate an attitude of mutual respect and trying to see things from the other parties’ perspective, will most likely yield the best result for you. When all parties are willing to give something up, in exchange for gaining something of value and where these is a genuine and mutual focus on success, there is highest probability of completing your home purchase under favorable terms. If possible, I suggest you always look to engage with home sellers who already possess this mindset or be open, to working with home sellers that can be encouraged to adopt this style.
5. The Nibbler
Nibblers are frustrating to deal with. Nibblers exist on both sides of the transaction. What is a nibbler? Someone who often wants to change things, especially multiple small, things after they have been agreed previously. What kind of home seller is most likely to be a nibbler? Someone with a lose/win or lose/lose mentality.
Can you think of any other negotiating styles not mentioned here? Send me an email or call me with your suggestions.