Negotiating the purchase of your new home is one of the most crucial aspects of your real estate journey. It’s also when your real estate agent’s experience can make the most dramatic difference during the process of buying a home. RE/MAX agent Tony Iacoviello with RE/MAX Escarpment Realty in Hamilton, Ontario, shares four ways an agent acts as a professional negotiator, helping to ensure you’ll receive a fair closing agreement for your new home.
Being in the Know
Your real estate agent is a scholar when it comes to the real estate market. With their niche industry knowledge, they can take lead when it comes to negotiating a reasonable closing agreement based on the appropriate value of the home.
“Knowledge is key in any negotiation, whether the real estate agent is representing the buyer or the seller of a property,” Iacoviello says. “Knowing the facts about a neighborhood, particularly sales history and current sales trends, is what helps to establish the value of a property, allows an agent to speak intelligently and confidently, and helps to ensure the client arrives at a fair and reasonable purchase or sales agreement.”
Your agent is trained to resolve conflict and knows how to remain cool, calm and collected during any intense moments of negotiation.
“Emotion and anticipated enjoyment of a property are huge factors for both buyers and sellers and often lead to overestimates of a home’s market value, especially in comparison to recent sales history,” Iacoviello says. “An agent’s role, like that of any trusted advisor, is to acknowledge those emotions while remaining objective. Agents keep a level head so they can protect their client’s best interests and keep them grounded in reality.”
Knowing What to Ask For
Agents are well-versed in the language that surrounds negotiation. As your advocate, they’ll request maintenance, like concessions and repairs, in a manner that’s appealing to the seller.
“Just like having knowledge of the neighborhood and local market conditions, facts are important when negotiating concessions and repairs,” Iacoviello says. “That knowledge isn’t limited to knowing what needs to be fixed, but also to the cost in time, money, and inconvenience of those repairs. Experienced agents can articulate what the buyer can expect based on what negotiations have yielded in similar situations.”
Building Bridges, Not Burning Them
Negotiation isn’t about working against the seller, it’s about working with the seller to get the best and most appropriate closing agreement for you.
“While a real estate agent is bound to act in the client’s best interest and negotiations can become heated at times, negotiating isn’t a war or a battle,” Iacoviello says. “There are two groups of people, buyers and sellers, who want to work together to complete the sale of the property. The purpose of negotiating is to determine if there are terms like pricing, repairs, etc. both parties can agree to that will make the sale possible. It’s more about building bridges than blowing each other up. That’s it, really. It takes a lot of perseverance, patience and skill.”