Understanding Real Estate Negotiations as a Buyer with HACK&CO
Navigating the world of real estate negotiations can seem daunting, but it doesn't have to be. With HACK&CO's skilled real estate team on your side, you can confidently engage in the negotiation process, knowing that our experienced agents will guide you every step of the way. Our goal is to help you find the perfect property at the right price, whether you're searching for homes for sale in Sherwood Park or elsewhere in the Edmonton area.
We understand that negotiations can be stressful, which is why we've outlined the negotiation process to help you feel more at ease. With HACK&CO as your trusted partner, you can be sure that we'll provide you with the information and guidance you need to make informed decisions.
The Real Estate Negotiation Process:
Step 1: market research on the mls property
We'll gather information about the property, the local market, and any competition. This helps us determine a "safe number" - the price we believe the property could sell for in the near future.
Step 2: Gather Intelligence
We research the seller, their real estate agent, and the property's history. This knowledge helps us develop the most effective negotiation strategy. We also ask questions related to disclosures, additional information, and weather or not they have a Real Property Report with Compliance,
Step 3: Form a Negotiation Strategy
We'll create a customized plan that includes key elements such as BATNA (Best Alternative to the Negotiation at Hand), Safe Number, and ZOPA (Zone of Possible Agreement).
If you've ever had a friend that made an offer before having a plan, that's what being lost in the woods looks like.
Every negotiation prep should have some key elements.
BATNA (Best Alternative to the Negotiation at Hand) will help you understand if the deal is right for you based on the options you would have outside of this negotiation.
Safe Number - an understanding of the market value of the property that will help protect your resale. This normally represents the goal number for the property.
ZOPA - (Zone of Possible Agreement) In a situation where a win is an agreement. There will be a zone where an agreement takes place. The research, planning, and "back-and-forth" are all used to locate and influence the outcome to our closest edge of the ZOPA.
Sometimes, negotiations reveal that the ZOPA is below our BATNA and that's time to leave the negotiation table to find a better option. In that situation, it's possible that our willingness to leave will change the other parties perspective and open other options in the future.
Step 4: Make an Offer
Based on our research and your preferences, we'll submit an offer to the seller. They may accept, decline, or counter the offer, and their response will give us insight to help us guide you through the next steps of the negotiation.
Step 5: Manage counteroffers
If the seller counters our offer, we'll discuss whether to accept, decline, or counter back. This process may take several rounds, but our goal is always to reach an agreement that benefits you.
Step 6: finalize the agreement
Once an offer is accepted, all parties will review and sign the final terms. The pending period then begins, during which other buyers cannot compete for the property.
Step 7: Move on or Celebrate
If an agreement is not reached, we'll continue the search for your dream home. If an agreement is reached, we'll celebrate your successful negotiation and prepare for the next steps.
At HACK&CO, we're dedicated to providing exceptional service that helps you navigate the complex world of real estate negotiations. Our clients' testimonials attest to the confidence and support they receive from our team. Let us be your trusted partner as you embark on your journey to find the perfect property in the Edmonton real estate market. #GoTeamYou!
Brief Explanation of the Negotiation Process
Most negotiations start when the buyer makes an offer to the seller on paper, then proceeds in turns.
Let's say we were making an offer for some houses for sale Sherwood Park. We design an offer based on what we've learned so far, and when the offer comes to the seller, it's the seller's turn to decide what to do, and they have three options:
Accept - in which case the offer becomes the accepted agreement.
Decline - in which case the negotiation is over.
Counter - in which case they will likely accept some terms and conditions of the contract and counter on terms and conditions of the contract.
The most common response for an initial offer is a counteroffer, but every strategy is different and sometimes a well-priced property should get an initial offer designed for acceptance before other buyers find it!
When an offer is countered:
Counter offers are normally by phone, text, or email and communicated to you verbally
When a counteroffer is received, we decide if we will accept it, decline it or counter it back again
If we make an offer in the early evening, we can expect to reach an agreement later that night or early the next morning. Prolonged negotiations that last for a few days are less common and are usually a result of people having limited access to communication or complex work situations.
When the offer is accepted and an agreement is reached:
In Edmonton Real Estate, when an offer is accepted all parties review the final terms of the agreement and show agreement by initialing and signing off.
The pending period of the property starts. Usually, under the conditions of the agreement, other buyers can’t compete with the agreement until Condition Day has expired.
When the offer is declined and an agreement is not reached:
No deposits are needed and we can go to the next houses for sale, and we will find you a better deal in no time!
Best and Final
At any time during a negotiation either party can give an offer that's "best & final." This means they are open to the other party to accept or decline but are not open to a counter offer.
Some people call this their "final price" or "walkaway number" so that means if the other party does not accept it, the negotiation is over as the only other option is decline.
An Accepted Agreement
One of the most important things to remember is that the seller wants to trade a house for money, and you want to trade money for a house. You have enough in common to engage in a negotiation that will result in an agreement that suits both parties. The HACK&Co Team is here to help you and ensure you have the best form to secure the best outcome. #GoTeamYou!
