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Confidential Information in Negotiating Real Estate in Northern Virginia

When negotiating real estate in Northern Va it is important that confidential information is controlled appropriately. This type of knowledge can work in favor or against the person whose information is discovered or known by the other party to the negotiation. I will primarily focus on the use of confidential information in negotiating real estate in Fairfax and Prince William County but the principles can be used in many other situations. The examples I use are from home buyers and sellers I have helped in recent years negotiate Northern Virginia real estate.

The control of information is detrimental when it comes to buying or selling real estate and taken for granted by most real estate professionals. This is a basic negotiating rule that I find is most often broken by every party involved during the negotiation of the transfer of property. I get asked all the time what makes a great Realtor, this is one of those aspects most buyers and sellers do not consider when employing a Northern VA agent. A good agent should consult with their client before any offers are made to make sure no information is communicated on accident. Much of the information is gained in casual conversation between agents or the buyer and seller if they meet or speak before the transaction is settled. This confidential information I speak of can help someone determine the motivation of the other party, you can find a more detailed article here on offer price and motivation.

Example 1:
A buyer I represented wanted to purchase a home in Old Town Manassas, Va. that they absolutely fell in love with the moment we pulled in the driveway. In our consultation before we looked at homes I explained to them not to show any excitement in the home if the sellers where present. They did an excellent job not showing their excitement until we got back in the car. The next day they said they wanted to write an offer so I called the listing agent to get more information. In our conversation I asked the question I always ask, “Why are your home owners selling?”
His Answer,

“They are in the process of a divorce and unfortunately it has been getting nasty”. The listing agent then said “They need to get this home sold to get everything finalized since it has been on the market so long.”

This answer gave me all the information I and my clients need to help us determine the motivation of the sellers.

While in the process of negotiating there are times that miss information will be passed but it is not always easily recognized or utilized.

Example 2:
A seller I represented in Centreville, Va. was listing their home and we had received an offer from a buyer. After several counter offers back and forth the prospective buyer rejected our final counter offer. They said it was too high of a price and were going to walk away over a few thousand dollars. I then requested a signature from the buyers on the first page of the offer saying they reject the deal. The next day the agent called me and she said, “My clients are having relationship problems and didn’t think they wanted the house.” She continued, “They have worked it out and will accept your last counter offer.”
Wow, either they fixed their marriage in less then 24 hours, or what was more likely it had to do with the price like they originally said. They most likely thought my sellers would come down more in price if we thought they were going to walk away. I though this was miss information to get the deal ratified. When further issues came up for negotiation we stood strong because we knew they were now emotionally tied to the outcome.