5 Ways your Clients May Negotiate When Buying a Home
by Stuart Neal
on Monday, December 14th, 2020 at 8:51am.
I’ve noticed that home buyers typically demonstrate recognizable negotiation styles when attempting to purchase a home. Sometimes your buyers 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 guiding clients, see if you can recognize their style. Here are the 5 behavioral styes.
1. Win / Lose
Usually this means that they win and the other party i.e., the home seller loses. You will recognize this style if your client shows a blatant disregard for the objectives, aspirations, feelings or concerns of the home sellers. These folks might be described as predatory and they will show special interest in for sale by owners, where they perhaps try to find desperate uninformed home sellers, from whom they can get a very good deal. It has been my experience that negotiators favouring this style are rarely successful and may bounce from opportunity to opportunity, until someone takes the bait.
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 the home seller, 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 buyers like this need your protection. You can add value by helping them express what they want from the home purchase and to negotiate on their behalf and secure it. Your client may want: to pay a certain price, secure a particular move in date or, they may want the seller to leave behind certain items. They may just be too shy or passive to pursue these goals. As their trusted advisor it is your job to add value, by obtaining these items for them.
3. Lose / Lose
This is not a situation we see very often, but it exists. I’ve seen this phenomenon when folks are in their worst frame of mind. Perhaps they are in the middle of a bitter divorce and selling a house is part of the matrimonial property dispersal. The selling client may become confrontational toward a prospective buyer if there is something in the offer they do not like and one of the sellers may become confrontational toward the other seller, just because of the situation, often shooting themselves in the foot, just to get even. Ultimately, this behavior is in no one’s best interests and perhaps prospective clients who are demonstrating this type of negative behavior should be avoided.
4. Win / Win
By far, clients that demonstrate an attitude of mutual respect and trying to see things from the other parties’ perspective, will most likely yield the best result. 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 making a home purchase. If possible, I suggest you always look to engage with clients who already possess this mindset or be open, to working with potential clients that can be encouraged to adopt this style. For their benefit and for your quality of work life.
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 buyer or home seller is most likely to be a nibbler? Someone with a win / lose, or lose/lose mentality.
Can you think of any other negotiating styles? Send me an email or call me with your suggestions.