Ascent Home Loans

When buying or selling a home, sometimes it can be or feel like one of the most stressful times a person can endure.  Searching for a home to purchase or a Realtor to represent you, choosing a lender, renovating your home, strange people walking through the home your kinds grew up in. The list is endless.

How stressful would it be if a perspective home buyer or seller changed their mindset.   Instead of looking at the process on a personal level,  try looking at it from a position of being the CEO of your own company.  Why a CEO?  If you really get down to it, what are you really doing when you sell your home?  You are selling what could be thought of as a company.

Let’s say you purchased a home 5 years ago.  What you have done is invested capital into purchasing a home or let’s call it the XYZ Company. What was the purpose of this purchase?  To be your own owner or let’s say CEO of this capital investment and increase your investment over time?

If your investment has increased in value, meaning a higher appraised value, you can remove some of the profit you made and invest it back into XYZ company for capital improvements, or better known as renovations. When XYZ Company has become to small and you need to move up to a larger company, the equity you have built from your current investment will help you achieve that.  In essence, what you have accomplished over the last 5 years is no different than what major corporations do.  Starting to get the picture?

Here is the most important mindset that needs to change.  Don’t take things personally.  When buyers are walking through your home, they will make comments.  They will critique everything from the carpeting to the color of the walls.  It is human nature, but remember, you are selling an investment.  As a former Director of Operations, I was involved in purchasing branches for our company.  Believe me, in the corporate world the same thing goes on.  Executives make comments about cubicle placement, file storage, floor space, even the office decorations.  The one difference is when it comes down to the negotiations, no one takes it personal.   Remember, you may be selling the first home you ever owned or the home your kids grew up in, but the  bottom line is, it was a capital investment in the future of the XYZ Company.

When negotiating like a CEO, here are a few tips to seal the deal.

1. Before you even start to negotiate, define what your goals will be.  Most sellers only think of one goal, what is the maximum I can get for my home. This is understandable.  But there is also another side to negotiating and that is what will I accept as my bottom line.  Remember, you are negotiating for the sale of the company you have built up.  There will be offers and counter-offers.  Before going into a deal you must decide what you will be willing to adjust to make the deal happen.

2. Do not go into the  negotiations with an attitude.  Not only does that put you in a bad light, but also puts the other party on the defensive.  On the reverse side, there will be buyers who will try their best to irritate you, thinking this will cause you to give in.  At this point you must stay calm and clear headed.  Realize what they are doing and instead of getting angry be pleasant and charming.  In a matter of minutes you will see the change in their demeanor.   Remember, to negotiate means ” to arrange for or bring about through conference, discussion, and compromise a settlement.”

3. Lastly, one thing I have noticed is that when excited about a deal, people talk too much.  They get chatty and next thing you know they are spouting off information that only helps the other side of the negotiations. This is not to say you shouldn’t speak, but more importantly you want to listen.  You want to hear what the other side is saying and how they say it. By listening, you will gain a world of information of just what the opposing side is looking for and wanting.

Try these simple suggestions the next time you go to buy or sell a home. I think you will see just how less  stressful the process will be.