
Price negotiations in real estate: balancing reality and wishful thinking
Challenges for sellers: Looking back at the past
Many sellers base their asking price on what similar properties have fetched in the past. They often view the value of their property through an emotional lens, influenced by their own investments and memories. As a result, their asking prices are often significantly above the current market value. This is particularly problematic in times of stagnating or even falling market development, as past offers no longer provide a reliable guide.
The danger here is that properties that are priced too high quickly become "shelf warmers." Today's buyers are well informed and compare prices carefully. If a property appears too expensive compared to similar properties, potential buyers will not even consider it. The sales process drags on, which can ultimately drive the price down even further.
Buyers in the here and now: realism thanks to banks and financing
On the other hand, there are buyers who generally have to follow the guidelines set by their banks. These clearly specify what can be financed and what monthly payments are affordable. Buyers therefore act less on gut feeling and more strictly according to what their financial situation allows. This means that they take a very rational and sober view of the real estate market and carefully weigh up whether the price of a property is in reasonable proportion to the quality and location offered.
A real estate agent as a mediator between worlds
This is where the role of the professional real estate agent comes into play: they act as a mediator between the different perspectives of buyers and sellers. Quality brokers are able to convey realistic price expectations to sellers based on the current market situation, while at the same time clearly showing buyers their financial options.
The aim is not to aggressively negotiate the price downwards, but to find a solution that is acceptable to both sides. Buyers should seek advice from their real estate agent in order to realistically assess what prices are appropriate, and sellers must understand that there is no point in insisting on an inflated price. A reputable real estate agent will help pave the way to a market-driven price that takes the interests of both parties into account.
The right price is the key to success
The key to success in real estate negotiations lies in finding a balance between the seller's expectations and the buyer's possibilities. Excessively high expectations often result in properties remaining on the market longer than necessary, which reduces the chances of a successful sale. Conversely, a buyer who tries too hard to push down the price may alienate the seller.
Ultimately, both parties should view the negotiation process as an opportunity to find a price that is acceptable to both sides—without excessive haggling and unrealistic expectations. A fair and market-driven price that takes current circumstances into account is the best basis for a successful real estate transaction.
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Notes
For reasons of better readability, the generic masculine form is used in this text. Female and other gender identities are expressly included insofar as this is necessary for the statement.
Legal notice: This article does not constitute tax or legal advice in individual cases. Please consult a lawyer and/or tax advisor to clarify the facts of your specific case.