Ask Texas REALTOR®

Q   I have had too many transactions fall apart because of a buyer or seller (or both) who, after a successful start to negotiations, digs his heels in. Usually, it’s because the person gets offended or thinks the other party isn’t being reasonable. Many times, the amount of money involved is so small, it’s almost laughable. I’m not laughing, though. How can I keep this from happening?

A  Anytime people take part in such an important transaction, emotions and egos will come into play. But there are some things you can try to keep the negotiations moving forward. First, discuss with your client his goals (target price, upper and lower limits, other elements he must have as well as those he’s willing to concede if necessary) before negotiations begin. That way you can remind him of his original goals when emotions start to fly. Try to keep both buyer and seller focused on the business decisions.

If price is the only sticking point and neither party will budge, find out if adjusting any non-price items will appease buyer and seller. Closing dates, earnest-money amounts, items that do or do not convey, all can be important factors to buyers and sellers.

If the difference in price is truly small, ask your client if he feels the amount is worth losing the sale (or the house). If he might have to spend more money than that waiting for a new buyer (or finding a new house), explain those consequences. You also can show your buyer client what the price difference will mean in his monthly payment. Looking at it in terms of a monthly payment instead of the overall price can sometimes shift a buyer’s perspective.

Have a question about finances, licensing, technology, marketing, or other real estate issues? Ask Texas REALTOR® by sending e-mail to texasrealtor@texasrealtors.com or fax to 512/370-2390. Not all questions can be answered.

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