Negotiation 101: The Fine Line Between a Poker Face and Over Enthusiasm
That’s it! You’ve found the home of your dreams! Tell that seller you’ve pre-approved for a Florida mortgage loan and make an offer and …
No, wait. Most real estate agents will tell clients never to show enthusiasm for a house. They recommend maintaining a poker face, presuming that any excitement wil give the seller an advantage, enabling him or her to jack up the proce.
Is there something to this strategy? Sure. But it often backfires. For many home sellers, there’s more to finding a buyer than mere price. They have strong attachments to their property. Consequently, examples such as the following may take place …
A couple with two small children had been looking for a new home in Oakland, CA. They fell in love with an exceptional property and decided they wanted to buy it. They were the first buyers to make an offer, but other offers followed shortly after. The first buyers’ offer wasn’t for the highest price.
However, the sellers were impressed by a letter from the first buyers in which they promised to take care of the property. The sellers had bought the house as a rundown fixer-upper and had renovated it extensively (such as those do with Florida home improvement loans). It was important to them that the property ended up in the right hands.
In the end, knowing how committed the first buyers were - and simply that they were willing to go a bit higher - the sellers decided to offer the house to them at a higher price. The offer was accepted. That was that, both sides were happy and the mortgage process was a lot simpler overall.
It may be a fine line to walk between jumping out of your shoes the second you walk into a house, but expressing interest lets sellers know you’re serious. Your enthusiasm can put you in good stead with the sellers. This doesn’t mean that you have to reveal the highest price you’re willing to pay, or the terms on which you’ll buy the property. But it’s a start.
SO HERE’S A HOUSE HUNTING TIP: Being the first buyer of several to commit can give you an edge. That’s why we suggest getting pre-approved on any Florida mortgage loans; many buyers retreat when they hear that someone else might be interested in the property. They don’t want to get caught up in a bidding war.
Remember: Telling a seller that you like his house doesn’t mean you have to overpay for it. It may simply ensure you actually end up with it.
