Avoid These Costly Mistakes When Negotiating Your Next Home Purchase!

Navigating the path to securing the best deal on a new home can be tricky, but I’m here to guide you through the process with some valuable insights that you might not have heard before. In today’s blog, I’m diving into the top five mistakes you absolutely do not want to make when negotiating the purchase or sale of your home. Plus, I’ll share what you should do instead to come out on top. Let’s jump right in!

Mistake #1: Making Assumptions About Offers Without Understanding the Local Market

It’s easy to assume that certain market trends apply universally, but that’s rarely the case. Here in Kansas City, for instance, the real estate market has seen some shifts. Homes that would have flown off the market in the first weekend a couple of years ago may now sit for 2-4 weeks. But don’t let that statistic fool you—many homes are still going under contract quickly, sometimes with multiple offers.

The key takeaway? Don’t rely on broad averages that span an entire metro area. Instead, focus on your specific neighborhood, school district, and even the unique features of your home. A property in one part of town might see different demand than a similar home in another, just based on these factors. To really understand your home’s value, it’s essential to look at recent sales of comparable homes in your immediate area. If you’re finding it tough to find exact matches, broaden your search to include your ZIP code or school district.

However, this kind of analysis is best done by a seasoned real estate agent who can objectively evaluate your home’s value and help you price it right. If you’re curious about my approach to pricing a home, I’ve got a video all about it on our youtube channel.

Mistake #2: Negotiating from the Wrong Position

Let’s say you’ve done your homework—you know the market trends, the average prices, and that homes in your desired area are selling slowly. The list price seems a bit high, and the house has been on the market for a good three weeks. In this scenario, you have more leverage. You can ask for concessions like closing cost contributions, a price reduction, or repairs based on inspection findings. The seller, eager to close the deal, might be more willing to accommodate your requests.

But what if you’re in a hot market, where homes go under contract within a week, often with multiple offers? In that case, asking for concessions could hurt your chances. When other buyers are waiving inspections and offering above asking price, demanding extras like closing costs could lead to a quick rejection. If you need those concessions, your best bet is to target homes that have been on the market for longer or that have less competition.

However, if your heart is set on a high-demand property, you’ll need to put your best offer forward, potentially foregoing some of the usual asks. Being strategic about when and where to negotiate is crucial to success.

Mistake #3: Going It Alone Without Skilled Representation

Negotiating real estate deals without skilled representation is a common mistake, and it can cost you. While most real estate agents aren’t lawyers, we are deeply familiar with the local contracts and regulations. Our experience with hundreds of transactions gives us the insight to know when to push for more and when to step back to secure the best deal for you.

As your agent, I also bring an unbiased perspective to the table. It’s easy to get emotionally invested in a deal, but I can help you navigate the process with a clear head, ensuring that you don’t overplay your hand or miss out on a good opportunity. Plus, I can work with your lender to explore options like offsetting closing costs or lowering your interest rate through points, making that higher price point more affordable.

Mistake #4: Getting Too Emotionally Invested in the Negotiations

Buying or selling a home is a major life event, and it’s easy to let emotions take the wheel. Whether it’s fear of not getting the deal you want or pride in making sure you “win,” emotions can cloud your judgment. I’ve seen it time and again: buyers or sellers who are too quick to make a decision, or too slow to act, often end up with regrets.

This is where having a seasoned real estate agent is invaluable. I bring a level-headed approach to the table, helping you weigh the pros and cons of any offer without getting in your own way. If you’re up against multiple offers on your dream home, for example, you might be tempted to waive inspections or offer your maximum price right off the bat. But I can help you craft an offer that meets the seller’s needs while protecting your interests, perhaps through an escalation clause or a flexible closing date.

Mistake #5: Trying to “Win” the Negotiation at All Costs

Negotiations aren’t just about getting the most out of the other party—they’re about finding a win-win solution. It’s easy to get caught up in the idea of winning, especially when you’re emotionally tied to a property. But remember, there’s another person on the other side of the table with their own set of needs and expectations.

Successful negotiations are collaborative. For example, if a buyer asks you to cover some closing costs but you’ve invested heavily in making your home move-in ready, it might feel like a big ask. But if your house has been on the market for a while, rejecting the offer might not be in your best interest. Instead, consider negotiating a slightly higher price to cover those costs while still making the buyer feel taken care of.

Negotiating should be about finding solutions that leave both parties feeling like they’ve won. If you’re interested in honing your negotiation skills, I highly recommend reading Never Split the Difference by Chris Voss. Voss is a former FBI hostage negotiator who started his career as a Kansas City police officer. His book is full of counterintuitive approaches that can be applied to everything from real estate negotiations to job offers.

Of course, I always recommend working with a skilled real estate agent whose full-time job is to negotiate on your behalf. If you’re thinking of buying or selling in Kansas City, check out our free buyer’s guide. We at Nelson Home Group are here to be your Kansas City real estate experts. Make sure to give us a call or text!

See you in the next blog post!