From time to time when you're negotiating on a property purchase negotiations can stall.
Maybe your offer is too far from what the vendor wants, or maybe you want a “Subject to” clause that they don't understand or are unwilling to grant.
Luckily commercial negotiations can often take quite some time, running over weeks or even months so you may have more time than you are used to, to work through the details of the deal.
Here are a few ideas use could use to reignite discussions…
First things first – if it's got to a stalemate take break from the negotiation.
It will do no harm to say to the vendor that you've got a lot on at the moment, and you'll need to take a break from negotiations.
Don't just leave them hanging through… out of respect for them and the process, try offering them a timeframe… “I'll get back to you at the end of the week” etc.
Use that time to review your information.
Due diligence can continue during negotiations, and if the vendor/seller has presented some more information, you will have time to recheck it and make sure it's still in line with what you are trying to achieve.
If it's not then, you've had time to investigate, and you'll be able to re-enter negotiations by questioning this new information.
Any inaccuracies found will help your cause here.
Its ok to say that you cant move forward until these things are clarified. These inaccuracies can come from the vendor or the agent. I've even heard of vendors who never realised in the whole time they owned the property that they owned more land than they thought.
Keep your head.
I've had vendors, and agents say things like “if you don't sign the contract today then you're going to miss out” or “We've got another buyer, so we're just going to go with them if you don't agree to these terms.”
While in some ways these could be seen as threats or negotiation tactics designed to push you faster than you need to go.
It's always best to not get involved in their drama. Keep your head. Keep your emotions in check and remind them that they haven't answered some of your questions fully or provided the necessary information.
This can serve to diffuse the pressure they are trying to put on you by throwing the ball back in their court.
Remind the seller that you are serious about the property.
If you are deeper into the negotiations, there's a good chance that they have spent time and quite often money getting to this point. They are invested in you as you are invested in them. Reminding them that you are serious and there are some points that you both still need to work through.
It can be stressful for a seller trying to get a deal across the line, and that stress bleeds out sometimes.
That's when I tell my students to stick with the process, keep your head screwed on and have ice water in your veins.
Do the numbers the way I show you and stay professional. That's the best way to keep things moving forward and get you the best deal possible.