Negotiating with a seasoned real estate agent can save home buyers and sellers money. According to a survey conducted by LendingTree in May 2023, 63% of buyers successfully negotiated a home’s price, 38% negotiated closing costs, and 36% got sellers to pay for repairs.
It is common to engage in negotiations—sometimes protracted ones—in real estate deals, particularly for acquisitions of luxury homes. As a new year brings new deals, a refresher in negotiation basics never hurts.
Unconventional Requests
Sometimes, negotiations involve unexpected terms. In Miami’s real estate market, unconventional requests during negotiations often stem from the city’s diverse and luxury-driven clientele. Here are a few unique or unexpected negotiation requests that can arise:
1. Paying in Cryptocurrency – Some buyers, especially international or tech-savvy ones, may request to pay in Bitcoin or other cryptocurrencies, which not all sellers are prepared to handle.
2. Including a High-End Car – In luxury deals, buyers sometimes negotiate for a seller’s exotic car.
3. Personal Concierge or Membership Transfers – Buyers might request a membership at an exclusive club, such as a golf or beach club, to be transferred or included in the deal.
4. Pre-Closing Renovations – Buyers might ask to begin renovations or make modifications before closing, which can create legal and liability concerns.
5. Seller-Financed Deals – In some cases, particularly with high-end properties, buyers may request the seller to finance part of the purchase price instead of using traditional lenders.
6. Zoning or Permit Contingencies – Investors may negotiate a deal contingent on securing specific zoning changes or permits before closing, which can delay the process.
Have you encountered any unusual negotiation requests in your deals?
Negotiation Strategies for Buyers and Sellers
✅ Be Assertive, Yet Diplomatic
Everything is negotiable. If there’s a specific term you want in the contract, ask for it in a respectful manner. “Try to sound reasonable, and don’t make demands,” said Steinberg. Instead of saying, “We won’t agree unless furniture is included,” try, “Would you consider including furniture in the sales price?”
✅ Adjust Your Strategy for New Construction
Developers are often reluctant to negotiate on price because recorded sales values impact other homes in the development. However, they may be willing to offer concessions such as upgrades, window treatments, or prepaid maintenance fees.
✅ Don’t Push Too Hard
While negotiation is key, pushing too aggressively can risk losing the deal. A collaborative approach increases the chances of reaching a mutually beneficial agreement.
Final Thoughts: The Power of Expert Negotiation
Real estate negotiation requires skill, strategy, and market knowledge. Linda Erice, a seasoned real estate professional with over 20 years in Miami’s luxury market, exemplifies these qualities. Originally from Italy, Linda has closed over 1,000 homes and is renowned for her exceptional deal-making skills and problem-solving expertise.
The Erice Group, has been recognized multiple times by Real Trends, with the team achieving a remarkable $117M in sales.
Michelle and Linda head the Luxury Division at the Erice Group. They are a multicultural team, fluent in 5 languages which brings a global perspective to high-stakes negotiations, ensuring clients receive the best possible outcomes in any transaction.
