Home Buyer Negotiating Power – You Have It

One of the most interesting phenomena I have experienced with home buyers is that, almost across the board, they assume they possess limited negotiating power. Buyers generally assume that the seller has the property and the bank has the money so they must have all the power, right? Nope.

Buyers enjoy a substantial amount of power in both home-price negotiations and mortgage negotiations. But they never believe they do. Let’s examine negotiating the price of your home. Buyers assume that sellers have multiple qualified prospects considering their home. Crafty real estate listing agents lead buyers to believe that if they don’t move on this home in the next couple of hours, they could lose it. And because of all this “interest,” the seller certainly won’t consider anything less than the full asking price.

In my experience, there are very few hot markets in which sellers have their pick of several pre-approved buyers who are prepared to close. I live in Baton Rouge, a city that was flooded with several hundred thousand people after Hurricane Katrina. At the time, Baton Rouge was such a hot market. But barring a catastrophic event that sends hundreds of thousands to your town looking for housing, almost no market is that hot.

If you are a pre-approved buyer that will be purchasing in the next few weeks, you are gold to the seller of a property. Most “interested” buyers are what we in real estate call “tire kickers.” These are buyers that have the inclination that they might buy in the next six months or ten years and decide to start looking. They don’t have their current home for sale, have not talked to a bank to see if they can afford the house, and are simply trying to get an idea of what’s out there. You on the other hand, have gotten a bank to agree to lend you money for a house, you have determined the neighborhoods you want to live in, and have a list of other houses you are considering. The seller will be thinking, “We better not let this one get away, because then we have to start all over doing open houses every weekend.” This situation affords you as a buyer substantial negotiating power.

Make sure the seller and seller’s agent know you are pre-approved by a bank and that you will be buying in the next couple of weeks. Let them know you have several attractive options you are considering and have to be able to get the home at a price you consider to be fair. Spend some time with the seller and agent going thorough the house and ask a lot of questions. There is a rule in negotiation that sellers become more negotiable in relation to the time they spend with a buyer.

Now, consider the facts. The seller has to sell their house to move on with their life. A house is not an easy item to convert to cash quickly. You have cash (or the promise of cash from the bank), and you are going to be making a decision among multiple attractive options in the next couple of weeks. Make sure the seller and seller’s agent know these facts, and watch the perception of power shift in your favor.

Tips On How To Turn Your Past Into A Productive Present

What is past and what is present? We obviously know that our past is gone and the events that formed the past can never be redone. The good, the bad, the beautiful or the ugly; they’ve already occurred; and all over now. What is important whenever we reminisce on our past is to make it as productive and relevant as possible to our present. While you cannot change what has transpired, you can change how you think about what happened.

Usually, when you think about the past and ever allow the positive events to dominate your thoughts, the tendencies are that; you will likely be grateful for those happy moments and probably imagine reliving it which may result in another emotion of self-pity knowing very well you cannot relive the past. In some cases, it helps you think of ways to improve your present so that the happiness continues. On the contrary, if ever your memory of the events you termed as negative needs to be revisited, unless you deal with the emotions associated with those events, you will continue to carry them with you into the present moment. To a large extent, if you failed to resolve issues of the past, the memories of such experiences become responsible for your spiritual and emotional bankruptcy when you become an adult. For instance if as a child, you were greatly abused, molested or had been harshly criticized and failed to deal with it earlier on, you are more likely to become very defensive and insecure in your adult life, which in essence becomes part of you and a way of life.

When you do not let go of tales of unhappiness, resentment, or rejection that filled your past you find it increasingly difficult to merge present activities to your dreams, sometimes the feelings you hold on to from your past experiences even deter you from aspiring as high as possible, having allowed those emotions of fear, revenge, guilt, blame or insecurity, to affect other areas of your life; which may include your relationships with people, attitudes, business and money matters. Undoubtedly, many of us have events, situations or people in our histories, which still evoke some emotions in us, but there is always time to work on such emotions to move beyond it. Maybe you were a victim of child abuse, and believe you could never live beyond the vestiges of that? Or you are finding it hard to forgive yourself for something you did years ago, and the guilt won’t just fade? There is nothing you can’t achieve if you believe and try.

The mistakes of yesteryear, either by you or other people, that have deposited a great deal of negative feelings within your body and soul, could be transformed from a severe liability into a valuable asset. While you could successfully do away with your feelings of anger, revenge, guilt, blame or fear, you simply didn’t because there is a reward from holding on your pain. You gain a lot from the thrill of the story. By having the story to tell, you derive some pleasure and get accepted by others. You create a stir and pacify your personal need for attention and the emotional energy associated with the event will be refreshed every time you tell your story. There is no harm in telling stories of your past but not in a way to allow you to whirl in your self-pity, or make others feel sorry for you because this simply puts you down and draw you back into unpleasant meditations.

Why not choose to use your past as a resource for progress and not a pool for pain? Why not choose to use your past as a sort of benchmark, counting your blessings on how well you have transformed your past into an inspiration for others? Many people are comfortable making themselves feel bad and do so at any opportunity. No matter what acknowledgement and attention you receive from sinking yourself into the ludicrous slush of sad tales, it can’t be as gainful as directing all your energies to your present moment, striving with focus for a greater tomorrow.

Tips to help:

Make amends where possible - If you need to make an apology for a past event and you really know it is possible for you to do so, then go ahead and free your mind, body and soul. Say sorry to whom you think deserves it. However, if you need an apology, don’t demand it except it is given voluntarily, don’t get stuck to the idea that you deserve an apology and not tendered. You often get disappointed expecting some people to do the right things. It keeps you stuck and away from achieving something greater. Take your mind off it and consider it inessential, because until you cut that chain, you cannot move forward. The process of making amends continue as you constantly aim to improve on our attitudes, behaviours, and a change in our outlook of the past in ensuring that the grievous harm from the past is totally erased.

Remember the past without strong emotions -Learn not to revisit your past morbidly or needlessly. You should practice letting go of the feelings that bring back the hurt you knew before and always view your past from a perspective that will make it as harmless as possible to you. See your past as a depot of knowledge and information which can help you make connections to elevate your self-esteem, courage and confidence.

Forgive- Learn to forgive yourself and forgive others who have maltreated you. More importantly, because you have made yourself a ditch filled with filth, carrying over the wreckage of your lost values. When you forgive, you will be able to first, believe in yourself, appreciate your worth, and give yourself the kindness, respect and love you deserve as well as extend such to others around you, far and near.

Need for acceptance- You have to accept the past, appreciate the experiences and acknowledge the lessons you have been able to learn from such experiences as all those will impact on your actions towards the positive changes required. You will then begin to tell just a story from one mile of the journey of your life and nothing more, simply accepting without condition and the more you accept, you become more accepting and forgiving to and of others. No matter what your past experiences were, you can live happier, without any grudge against yourself and anyone else by being in control of your actions and decisions and accept that your past had been the it was, simply because nature wanted it so. You have choices with your present moment and you can make the best use of the tools you now have.

How to Hire a Negotiator

In life, there are some situations that you will be called on to negotiate in order to get what you want / need. However, there will also be situations in which you have the time (and the budget!) to reach out and get outside help.

Getting outside negotiating help can be especially critical if the type of negotiation that you are preparing to start is of a very technical or detailed nature. If you can find someone who has “been there, done that” you can significantly improve the odds of being successful in the negotiations. Now the big question is just how does one go about hiring a negotiator?

The challenge in interviewing someone to do negotiating on your behalf is that negotiation is a very difficult job to do. The reason that negotiating is such a challenge is because it doesn’t just require one or two specific skills, but rather a whole collection of skills that we really don’t find in business.

At a very high level, a good negotiator has the ability to show good business sense while at the same time displaying a deep understanding of how people think and act. It is a rare thing indeed to find both of these qualities in a single individual. Couple that with any special knowledge or experience that you are looking for and choosing the wrong negotiator to represent you can appear to be all too easy.

The following 10 characteristics of a good negotiator are what you should be looking for when you are interviewing possible candidates. It’s going to take some probing on your part to uncover these traits, but it will be worth the effort:

1. Must have the ability to negotiate well with members of YOUR team. If the candidate can’t win the confidence of your team, how can you expect him to succeed in the negotiation with the other side?

2. Must show that he/she has the ability to construct a plan and the commitment to follow it through. The ability to realize that not all information may be available before the negotiation starts and the willingness to check facts and alter plans as new details emerge are also critical.

3. Did I mention the need for sound business sense? The ability to see through the fog of negotiations and identify the issues that will have an impact on your bottom line is key.

4. The ability to deal with both ambiguity (both before and during the negotiations) as well as conflict during the actual negotiations.

5. The willingness to aim high when setting goals for the negotiations.

6. The ability to realize that a negotiation is a process and the patience to wait for the other side to reveal more so that the process can move forward.

7. The ability to personally connect with both your team and the other side. Yes, negotiation is a business process, but the personal touch can make all the difference when it comes to closing the deal.

8. A realization that his / her personal integrity is what matters above all else.

9. The ability to, no matter how heated a discussion gets, listen with an open mind to what the other side is saying.

10. The self-confidence that is needed to see a negotiation through from start to finish.