How to Help Your Clients Walk Away from a Bad Deal
In the house buying world, the home buying process still isn’t over for your clients once they’ve finally found a home they love. Now, they will enter the realm of negotiations, and if they don’t get their poker face on quick, they could lose out big. However, just because they’ve given an offer or put down an earnest money deposit doesn’t mean they have to buy this house, no matter what. If certain situations arise, it might be smarter to call it quits. Here’s how to help your clients walk away from a bad deal.
The house failed the inspection due to termites, mold, or foundation problems
Always, always, always advise your clients to get a home inspection done before buying a house. It will protect them from so many things! If the home inspection comes back negative and the house is infested with termites, filled with mold or has foundational issues, tell them to rethink buying this property. Unless they have the know how to get rid of mold or termites or are willing to pay a lot of money to get the foundation fixed, this house could be more expensive than it is worth it for them. Now, you could always see what the seller wants to do about it–if they are willing to pay for these problems to get fixed. But, if not, your clients might be better off by walking away.
The house you want has multiple offers–what should you do?
Multiple offer situations are tricky because you don’t want your clients to give a low offer but they also don’t want to go too high, especially if the house price is already at the top of their price range. One smart tactic is to try to stand out from the crowd. Find out why the seller is selling the home and invite your clients write a letter about how much this home would mean to them. Have them send a photo of their family so the seller can put a face with a number. Advise them to give an offer number that is different from the rest–something memorable. Sometimes, the good negotiators end up getting the home, even if they didn’t have the highest bid price. You just never know!
The seller won’t budge or help out with repairs? Is it time to say goodbye?
If the home has a number of repairs to be completed and the seller isn’t really interested in helping you out, your clients might want to walk away. Talk to them about whether it’s worth it to buy a house in need of maintenance and if they can afford the extra maintenance. Sometimes, if the seller gets word that they’re going to walk, they become more willing to work something out. However, don’t use walking away simply as a scare tactic–only do it if your clients really mean to and don’t go forward with the deal unless something positive changes for them.
The appraisal came in below the contract price
This is a tricky situation. If the home gets appraised and the appraisal price is higher than what your clients offered, that’s not really fair. You can try to negotiate a lower price with the seller or see if they will compromise in another area, such as covering closing costs for your clients. If the seller refuses to budge or come down, your clients might be better off walking away. There’s no sense in paying more for something than it’s worth.
Your clients are compromising on a lot of things and it doesn’t feel right
If your clients get into a situation with the seller where they are having to do a lot of compromising instead of getting what they really want, you might want to do something about it. Don’t let them get walked all over! If something is important to them, like keeping an appliance in the home or fixing a ceiling fan that doesn’t work–don’t just let it go. If the seller doesn’t want to help your clients out at all, maybe it’s time to look somewhere else.
Negotiating for a house can be difficult and filled with lots of back and forth. If your clients needs are not being met or you don’t feel good about how the negotiations are going, it would be smart to take a step back and evaluate if this is a good deal for them or not. Sometimes taking a step back can help you see the big picture more clearly and will allow you to make the right decision.
A good real estate agent will be familiar with the art of negotiating and will do everything to help their clients have a positive home buying experience. If you want to learn about the power of negotiation and your role in it, you can take classes at Sea Coast Real Estate Academy. We would love to give you a solid foundation for your real estate career.