Dealing with Difficult and Demanding Home Buyers

Unfortunately, dealing with complex and demanding home buyers is common for selling a home. In slow markets like now, they can be especially prevalent. With the average sales price dropping across the city and the number of listings rising, now is not a great time to be a seller in NYC. The bargain hunter thinks he can get everything with a lowball offer, the time waster who refuses to put an offer on paper, and the unrealistic dreamer who sets impossible deadlines. Such people are challenging but not unlikely to work out. It just requires a cool head and a well-thought-out approach.

Here’s how to deal with difficult buyers when selling your home during a buyer’s market.

What to expect when selling your home

People tend to attach a lot of emotional value to a home, and if you’ve lived in yours for many years, you should expect it to make you a little biased. Such can cause problems when you run into difficult buyers. So the first step should be to try and emotionally detach yourself from the property. Start by finding the home’s current market value through comparative market analysis (CMA). The CMA determines the right asking price for your home based on sales of comparable properties in your area. Next, depersonalize your home by removing most of your personal effects, such as family portraits, and making them more appealing to potential buyers. Next, you’ll want to stage the home to look best for the open houses and private showings ahead.

As you meet different buyers and start negotiating towards a contract, keep in mind these negotiating tactics.

Say “No” and wait

If a buyer is playing hardball and refusing to budge on a concession or price point vital to you, then be prepared to say no. Say no and give your reasons for it. The buyer will see that they’ve hit a brick wall and may come back with a more reasonable offer if they’re interested in the home. If you’re not getting many offers, this cannot be easy but it is probably better in the long run.

Make a counteroffer

Saying no to a buyer’s demands might work with multiple offers, but what if you’ve only got one interested buyer? If a buyer’s first offer is too low, be ready to meet them halfway with a counteroffer. It is good practice to have some cushion space built into your original offer to work in your favor. This will allow you to scale back the price without going too far. This looks good from the buyer’s point, as it shows you’re willing to compromise and play fair negotiations.

Take preventive measures

If a buyer doesn’t accept your counteroffer, look for ways to mitigate your losses. Concessions and contingencies can be just as significant as the price point; try reducing them. If the buyer agrees to drop certain contingencies, ensure you get it in writing.

Let your agent do all the talking.

If things get very heated, then turn things over to your agent. They want to make a sale just as severely as you do, but they’ll be far better than you at keeping a level head because they don’t come with any emotional attachment to the home. Your listing agent has also likely dealt with a demanding home buyer before.

Different Home Buyer Character Types

In a perfect world, every potential buyer who passes through your doors would be deadly serious about their offer and put no obstacles down in the selling process. But like almost every aspect of life, you’ll encounter many different homebuyer characters in real estate. Even if it takes a while before you finally meet them face-to-face, it’s good to know what buyers they are. Know your buyer, and you’ll learn how to deal with them best. Here are the five most common you’ll encounter when selling your home.

The all-cash showoff

At first, an all-cash buyer can seem like a gift sent from heaven. The financial guarantee of an all-cash buyer certainly makes them a surer thing. Especially when other interested buyers only have a mortgage pre-qualification. But know that this can make them a little arrogant and more demanding with contingencies. They’re also more likely to make a lower offer. If that offer price is too low or their demands become too much, be willing to walk away. You’ll still get the same net proceeds in cash regardless of how the buyer pays as long as the bank funds the loan.

The scrappy underdog

Opposite the all-cash buyer, such a home buyer has little money to put down. Most people with FHA loans fall into this category. This can present a problem for sellers as FHA loans have stricter home qualifications. The more help a buyer needs to finance the purchase, the more you might be required to give, such as contributing to closing costs or potentially facing the deal falling apart. Still, don’t allow that to make you overlook these types of buyers. They tend to be far more flexible with a seller’s needs.

The emotionally attached charity case

These buyers fall in love with your home and include tear-inducing love letters with their offer. At the same time, these buyers can be the most heart-warming, knowing that love won’t pay the bills. The bottom line still matters, so unless their offer price and financing look good, be on your guard against anyone who tries to play to your emotions. Maybe they’re holding out on some cash and using this as a tactic to get a better deal. Perhaps their feelings are genuine, but the financing isn’t there. You can always negotiate with these types of buyers. Focus on the bottom line, and don’t get distracted.

The casual shopper

Every seller encounters this type. These people regularly attend open houses, take up the agent’s time asking questions, and sometimes make lowball offers they know will be rejected. They are buyers, but they’re just not committed buyers yet. They probably want to buy one day, but for now, all they can do is look, dream and take up your time. These people can be big-time wasters, so the sooner you identify them, the better. Find out if they’re looking at multiple properties and how fast they plan to move. The vaguer their answer, the more careful you should be in placing your faith in them.

The Coyote

These buyers are part market-enthusiast, bargain hunters, and serious buyers. They’ll usually have been looking for the right property for some time and are just looking for a good deal before they pounce. They know what similar properties are going for, and they’ll want to know about any potential defects in your home. Just be honest with them. They can be a winning card if they’re serious about doing a deal and aren’t trying to underpay you.