How Social Meda Killed the Deal- Negotiation Killers in the Social Media Age
Facebook, Twitter, LinkedIn- everywhere we go people seem to be tweeting, facebooking or posting status updates on some kind of online group or social network. Unfortunately, many of these seemingly innocuous updates could cost you as home buyer or seller thousands (or hundreds of thousands) of dollars, if not an entire deal.
Recently I have seen updates similar to these on social networks I participate on:
From a Home Buyer
From a Home Seller
“Looks like we are getting an offer on our house this afternoon. About time.”
From a Seller’s Real Estate Agent
“Sitting at an open house AGAIN. This listing is totally over priced.”
From a Buyer’s Real Estate Agent
“Writing a counter offer for a client. Hope they get it. We have written 5 offers and they have to move next month!”
You can probably see how all of these different scenarios could impact how negotiations happen if the other party (or their agent) happens to see your message. Do the updates make you appear desperate, motivated, anxious? As a buyer or seller, your social status updates can have serious and significant ramifications in your home sale or purchase. Your words in online forums can and will be used against you when you negotiate on a home purchase if you have a savvy and aware negotiator on the other side. The key in negotiations is knowing the motivations of the other party. Social status updates of both you and/or your real estate can inadvertently provide information to the other party that could be costly.
Case Study
Consider Jane (name changed for privacy sake). Jane had been looking for a new home in the lovely town of Mill Valley for eight months. We looked at home after home until one day, we found the perfect home. The right number of bedrooms, a lovely back yard with a swingset, even a basement area- perfect for games, television and play. She was so excited about the home, she ran home to tell her husband. She also posted an update on her Facebook account about finally finding her dream home in the xxxx neighborhood. Unfortunately, this neighborhood was highly coveted and one of her Facebook “friends” happened to have another very close friend (we’ll call her Buyer 2) looking to move to the same neighborhood. This so called friend notified Buyer 2 about the house and at the end of the day, that second buyer, Buyer 2, was the one who walked away with keys in her hand.   Buyer 2’s agent was not aware of the home even being on the market until the Facebook post by Jane was shared.
While in the world of transparency and social networking it might be tempting to talk about the ups and downs in your home sale or purchase, it might pay to keep quiet until the transaction is closed.
“Have to vacuum and clean up the kids toys AGAIN. So tired of showing this house, I hope we sell it soon.”
While we like to think we have some sort of privacy in online forums, our social networks may not be as tight as we deem them to be. This same situation applies to our offline activities and interactions as well, but social networks magnify your message, however unintentional it might be. Use your words cautiously as you make a move- it is possible it could have a significant impact on your bottom line and the success of your real estate transaction.
P.S. Before you hire your real estate agent, you may want to look and see what they are posting on Facebook, Twitter, etc. Do they talk about their clients and transactions? Even “generic” complaints or comments can harm a transaction. Sure, they didn’t post the client’s name or address, but hey, they only had one listing! Which listing do you think they might be talking about? Yours? Make sure their words in online forums don’t cost you too!