7 Negotiating Tips for Sellers under the Gun

Behind on the mortgage? Getting divorced? Have to move for a new job? Keep that news to yourself, says Jim Camp, author of "No: The Only Negotiating System You Need for Work and Home" and president and founder of The Jim Camp Group. "Because, as a seller, you're in a negotiation with your Realtor, whether you know it or not, " he says. "And they can be the toughest party in the negotiation, actually."

Camp coaches high-level executives in negotiating skills. Some of the toughest situations for business leaders is getting what they need from professionals they hire to represent their own interests. Working with a real estate agent is no different, he says.

Too many times, buyers think they have a friend in their real estate agent, "but that attitude is really going to hurt them in the end," Camp says. "He's not your friend. He's your agent. And you're in negotiation with your agent whether you like it or not."

You're not on the "Real Housewives" or "American Idol." You don't get extra points for your compelling back story. In fact, it could cost you big. So, as Dr. Evil so elegantly advised, "Zip it."

Sooner or later (likely sooner), a real estate agent or some sharp-eyed buyer will ask: "Why are you selling?"

"I like what I call a 'no-risk answer,'" Camp counsels his clients. Some examples:

• The weather. It's too hot or too cold. Or maybe you've had your eye on a place in Key West, Fla., or Montana.
• "It's time." Or, the extended version: "Well, I've been contemplating this for a while, and it's time." (Both vague and definite.)
• Or, if you have long-distance family, you can try a variation on the above. For instance: "The family's been calling for a while, and it's time."

The secret to success: "You want to keep it simple and have it planned out," Camp says.

Most important, you give agents and buyers absolutely nothing to work with and say nothing that hints to your desire to move quickly.?

If you need to sell because you can no longer afford the mortgage, you might be able to negotiate with the bank if it knows you're actively selling the house, says Camp.

Camp recently coached one client who could no longer make his $8,000-per-month mortgage. After a few conversations, the bank lowered his payments to $2,000 in return for his putting the home on the market.

Negotiating secret: "You have to go to the head of loss mitigation" for the lender or servicer, Camp says. For the homeowner who comes in "straight up," who is selling the home and needs patience while it's on the market -- "you'll be shocked what they will do for you," he says.

Why it can work: The lender is "looking for ways to get their money or keep their money," Camp says. The quickest way to get the most money is if the owner sells the house in a regular sale, he says.

With foreclosures or short sales, properties can linger -- empty and profitless -- for years before lenders recoup just a portion of their money.

Next >

Bankrate.com is the Web's leading aggregator of information on financial products including mortgages, credit cards, new and used automobile loans, money market accounts, certificates of deposit, checking and ATM fees, home equity loans and online banking fees. Visit Bankrate.com to get the tools and information that can help you make the best financial decisions.