Let's talk about something a lot of people mess up. Real estate negotiation.
I've pretty much seen it all:
deals blown over pride,
great offers turned down out of overconfidence,
and homes that sat on the market for months because sellers thought they could "wing it."
And... I get it. Selling a home is a big deal. But when emotion leads the negotiation, mistakes happen.
So let's go through the most common negotiation mistakes I've seen as a real estate negotiation expert, and more importantly, how to avoid them (from someone who's seen the best and worst of what can happen at the negotiation table.)
Want to learn more about this topic? Watch the full episode about this topic in our locqube chats podcast.
#1 Most sellers are unprepared for real estate negotiation
It's usually one of the biggest financial transactions that a lot of people make, and it doesn't just have a transactional element to it, it also has an emotional and life component to it.
But when I say they're not prepared for negotiation, it's not because they aren't smart. Not because they don't care. But because they walk in thinking they're selling "a home", and forget that buyers are thinking of it as "a property."
That mental gap alone ruins deals.
Here's what sellers often do:
Overestimate their home's value
Take offers personally
Compare their home emotionally to their neighbor's (instead of looking at data)
Think negotiation is just about price
It's not. It's also about timing, presentation, power dynamics, and psychology. You can't negotiate well if you only look at your side of the table.
See also: How to deal with the stress of selling a house
#2 Sellers often list too high and are forced to sell low
Some sellers think, "Let's list high and negotiate down. That's smart, right?"
Not always. And in many cases, it backfires for many reasons:
You scare off serious buyers who think you're unrealistic.
Your listing sits longer, and becomes stale.
You create space for lowballers to swoop in.
You lose leverage.
Yes, sometimes it works... in ultra-competitive markets or with rare properties. But most sellers aren't in those situations.
That's why this summer, a 2025 report states that 20.7% of home sellers slashed their prices (the highest share since at least 2016) and many removed their listings altogether.
And yes, I get it. You raised kids in this home. You redid the kitchen with your bare hands. You have memories in every room.
But buyers don't care. And I don't say that to be cold. I say it to protect your deal.
When a seller is too emotionally tied to their home, even a simple request from the buyer feels like an insult.
"They want to change the tile?"
"They think the price is too high?"
"They're asking for credits?"
See also: How much do you lose selling a house as is?
Maybe because of the phase in life they're in, or because of all of the transition and the stress that comes with selling a home, the homeowner might not respond well, even to reasonable requests from the other party.
Suddenly, a logical negotiation turns personal. And when it turns personal, it gets toxic.
I've seen sellers walk away from amazing offers just because they felt offended. And then regret it months later when they're dropping their price just to get showings.
That's one of the biggest negotiation mistakes I see - letting your feelings run the show.
And more importantly, real estate negotiation strategies are not one-size-fits-all. Smart sellers price right and let market momentum work in their favor.
#3 Most buyers can smell desperation (or overconfidence)
I always say: real estate negotiation is a dance. But it's also a game of perception.
I've heard this expression and I agree that "if both parties walk away feeling slightly uneasy, then it was a good transaction because everybody was able to accomplish some things, and give in on some other things."
But here's something most sellers don't know (or better yet - don't want to admit):
When you're selling on your own, buyers assume they have the upper hand.
Even if you're a skilled negotiator. Even if you've read all the blogs and watched all the YouTube videos. The moment a buyer knows you're solo, their strategy changes.
I've had sellers who were literal hostage negotiators (for police departments). Better at negotiation than me, if I'm being honest. And even they chose to be represented. Why? Because they knew how powerful perception is.
Having a great, experienced agent tells the buyer: this deal is structured. It's guarded. It's not personal, it's professional. That alone changes the tone of the entire negotiation. Because a good agent is gonna be a buffer.
They shield you. They help you breathe when the buyer's agent sends a ridiculous counteroffer. They translate legal speak into normal words. They know what to push on, what to let go of, and when to keep quiet.
They also know what buyers really mean when they say things like:
"We love the home, but..."
"The budget is tight."
"We need some time to think."
A real estate negotiation expert knows how to read between the lines.
When sellers go FSBO (For Sale By Owner), they often miss these cues, and lose leverage they didn't even know they almost always sell for less than the selling price of other homes.
(That's why the share of FSBO sellers was a historical low as per the 2024 NAR report.)
#4 Forgetting that negotiation doesn't start at the offer
This is something people don't talk about enough.
The real estate negotiation doesn't start when the buyer submits an offer. It starts:
When you prep your home
When you list it
When you write your description
When you pick your photos
When you choose your agent
Every single decision builds (or erodes, for that matter) negotiation power.
This is also one of the reasons why at locqube, we focus on presentation AND representation.
Presentation means killer photos, smart descriptions, AI-powered open houses. Representation means you've got someone on your side who knows how to negotiate the hell out of a deal.
Most sellers skip the prep work and think the negotiation will save them.
It won't.
And let me be clear, you can sell your home yourself. But the question is, will you get the best outcome?
Because what happens when buyers see you're selling on your own, they think, "They're saving money on commission. I'll offer less." They assume you'll be flexible, uninformed, or even desperate.
And suddenly, you're on the back foot.
For example, we charge 1.99% commission for most properties. That alone changes the negotiation dynamic. Our sellers walk into the deal already saving thousands. So they (you) are not negotiating from a place of pressure. And that changes everything.
Negotiation tips most people won’t tell you
So keep these tips in mind:
Don’t oversell during showings. You talking up the “sunlight in the dining room” means nothing if it’s not what the buyer cares about. Let them explore. Let the agent guide.
Don’t rush to respond. Silence can be a negotiation tactic. Let the other side stew a bit.
Know your walkaway point. If you don’t, you’ll get played.
Avoid disclosing too much. “We really need to sell fast” is gold to a buyer. Keep it professional.
If you treat this like an emotional farewell, you’ll lose. If you treat it like a strategic negotiation and have the right support, you’ll win.
"So what is locqube? A website? A brokerage?”
We get asked this question very often.
And honestly? It’s a movement.
We exist to protect homeowners’ equity. And we do it with 3 core principles:
Sell for as much as possible.
Lower commission, always. We cap ours at 1.99%.
Negotiate like hell. We structure fees and terms so they work in your favor.
That’s our approach to real estate negotiation. And we see the results every day.
So, if you're thinking of selling? Start with a home value estimate at locqube.com. See what your property could go for, how it would look on our platform, and how our AI and agents can back you up.
Because in this market, you need more than a listing.
You need leverage.
