What are the top negotiating mistakes made by home buyers? Although my buyer’s agent works with more home buyers, I sold a charming Pasadena home earlier this year. This prime piece of Pasadena real estate was exactly what the buyer wanted: not too big or small – just the perfect fit. While most Pasadena homes are selling quickly in multiple offers, this particular piece of Pasadena real estate was not. During contract negotiations, the buyer and I concluded we paid more than top dollar.
After a round of inspections and meetings with contractors, we determined the buyer’s initial investment would be higher than anticipated. There were plumbing and electrical issues, so the buyer asked for a small credit or price reduction. We quickly reached the point where we were arguing over a few hundred dollars.
The seller was going to risk his sale for a few hundred dollars. I was amazed because if the seller had returned the property to the market, I am sure it would have sold for a lower price. But the seller knowing how much the buyer loved the home, would not budge and my client moved forward.
But it is better to overpay for a home you love than underpay for one you don’t. Buying and selling are emotional. And, of course, you should buy a home you love. Why save $20,000 to buy one you don’t? But once you fall in love, negotiating becomes extremely difficult. One of the biggest negotiating mistakes is letting the seller know how much you love their home.
