Why Negotiate ?

Deb Murphy
Why do we negotiate prices on properties?

Don't get me wrong, I understand that negotiating gives both the Vendor and the Buyer the opportunity to flex their monetary muscles before the winning round.

All vendors know that a potential buyer will offer them less than the advertised price and all buyers know that they will, most likely, get the property for less than the asking price....and so the to-ing and fro-ing begins.

This process can take days, and sometimes weeks, before the victory bells rings.
During this time, emotions are battered and bruised on both sides:

- Vendors start to wonder if, in fact, the initial price was too high.
- Buyers start to wonder if they should have offered even less.
- Vendors revisit their finances to see if they will have enough funds at the end of the deal.
- Buyers will be going back to the broker to get a higher approval just in case.
- vendors will be thinking "what if someone else offers more after we agree on a price"?
- Buyers will still be looking at other properties.
- Vendors still have to ensure property is clean and tidy at ALL times which can take months
and so it goes on.....

What if there was a trend started where the advertised price was the final price?
Imagine how much time and emotion it would save all parties concerned including the Real Estate Agent, the Broker, the Solicitor, Tenants in rental properties and not to mention the strain on relationships in the process !

Of course the Vendor and the buyer would still need to do their homework when looking at the properties but at least all cards are on the table with the price and the only thing to negotiate would be the terms and conditions of the contract.

Real Estates still play a vital role in the whole transaction as they provide expert advise on price and advertising as well as bringing the Buyers and Sellers together.

What do YOU think?