When it comes to real estate negotiations, getting to a fair price and terms for a home can make the most well adjusted individuals act against their own best interests! Depending on the combination of personalities involved, a simple straight forward offer and acceptance can devolve into a gas fire in a paper factory with no escape.
Don’t let it come to this! Fresh off a week and a half negotiating bender I have had to witness some of the worst tactics I have ever seen in over 26 years.
I’m just going to list a few of the ways to lose a deal:
- Take everything personal. If you take the terms of a sale as a personal affront, you are missing the point. Stay focused on the print, the black and white. Do not assign emotional inferences to the information.
- Distort the facts and data to make your case. Both parties to a transaction will be examining the same data and details. There are not two sets of applicable statistics. There are anomalies that you do have to remove, but generally if you reject valid information because it will conflict with your position, then you are missing the point. Misrepresentation is not the same as negotiating.
- Assume the worst intentions. You can’t believe that every comment or thought expressed has a secret meaning behind it. If the other party is using their time to reply to an offer, that’s ok, you can take your time too. It doesn’t have to mean they are shopping the deal, or intentionally causing you discomfort.
- Imagine you against…everybody. You have an ally in the deal. It’s your agent. You have to trust your agent to advocate your wishes. Stay open and honest with your agent so your real desires can be communicated in the most effective way.
- Play games. If you like to play games with people, save it for your next car buy. If you blow it in that scenario you can just go to the next dealership and buy the same car. In real estate, if you start changing terms as a punitive measure for an attitude you perceive (see items 1, 2, 3, and 4) you will just look childish. That is a clear demonstration of ignorance or ego, and neither one is better than the other.
- Be fearful. The worst position to negotiate from is fear. The global economy does not need to align for world peace before you can agree to terms. It is a better position to ‘want the deal’ and to be confident about your walk away point as long as that point isn’t driven by ego.
It’s always exciting to make the deal. It’s always disappointing to lose one. In the short term, real estate will reveal its hand and expose the truth about the final price the seller would take and the final value the buyer couldn’t see or vise versa. Just know where you need to be before getting into negotiations then inch your way to agreement. No games, just good business.
Putting your home on the market is an exciting and challenging time! In the beginning it looks pretty straight forward. Price it. List it. Sell it.
There are actually many layers to getting the best of those three simple steps. One of the most challenging aspects of the home sale is predicting the timing. It is also, one of the most crucial elements as all plans remain dormant until there is a definite date to strategize around. So it’s nice if we can get our arms around this early!
The best you can do to predict the market time is to know your competition and have an agent with the skills and patience to do some detailed analysis of the current market.
Three months is the current market cycle for drawing comp sales and information. Six months history if needed to identify any trends. You will want to know market times. Not just the vague averages but actual market time based on specific circumstances relative to each sale. It skews the numbers unfairly to believe a home that requires cosmetic updates due to outdated carpet and rainbows of wall paint would be comped for timing against a recently updated and fresh twin. They will not be the same timing.
Physically inspect competing homes for character and quality. This will give you a better understanding of where you are in the selection process. The needy property will sell after the best of show are absorbed so you need to know what that number might be. You can manage your expectations from the start using accurate data intended to perform to the guidelines and not generalized reports that set your expectations too high which leads to frustration.
You also need to have an agent who understands how to calculate absorption rates. Again, this is data that can’t just be based on area generalizations. If there are twenty homes in the area, there needs to be more discovery about the character of homes and how they relate to the overall absorption rate which will in turn translate into more accurate timing based on your individual property.
I like to provide my sellers with a customized timeline that illustrates not only the entry to the market with anticipated market time but the seasonal concerns that affect market time as well. This provides a visual map for clarity of conceptual information as well as forecasting potential movement on list price. It’s a lot easier to make adjustments in price if you had early information that prepared you to recognize the potential and to confidently know when to make the change.
This is important research not only to negate the concern of a property lingering but it also serves as a preparation for properties that sell immediately upon listing. You need to be prepared that your home and it’s condition are in demand so you don’t recoil after receiving a swift response from the market.
That’s the overview for forecasting market time. Can’t forecast market anomalies……yet, but I’ll be working on it!
You will find a lot of useful search tools and calculators on my site, so feel free to search away! If there is something that you would like me to look into for you, that is what I’m here for so please ask me!