The In's and Out's of
the Real Estate Sales
Buying and Selling Real Estate is more than a simple
unemotional transfer of money and signing of documents. There is often an
exchange of negotiation points that are important to all the parties involved.
Knowing what is involved and how to successfully negotiate a sale, will result
in greater satisfaction to all parties.
Consider these points
1. Know your seller,
Know your buyer
Motivation for the sale is important to know. Does the
seller need and want to sell? What is the reason? Is there a time factor
What motivates the buyer? Does the buyer need and want to
buy? Why did they choose your neighborhood over another? What is important to
Case in Point.(seller)
In a recent transaction, a property was put on the market by a family with a
new baby. The mother had just been transferred to Valencia from Los Angeles,
which meant hours away from home and a stressful commute. The buyer who could
guarantee a quick close of escrow(under 30 days) was the one who was able to
get this property, even though other offers were higher.
Case in Point (buyer)
A sale was lost because the owners refused to negotiate some small points that
would have made the sale. The buyers wanted the appliances that were in the
home, while the seller inexplicably refused to include them, even though the
buyer's gave a full price offer with few contingencies.
Â Study the Comps
Your Realtor will provide you with comparable sales. You
will have a very good idea oil what similar homes in the area have sold for and
which homes never sold due to overpricing. There's really no good reason to overprice
(or overpay) for a property when all parties have this information.
Don't expect to get a nice property for a low ball price,
it's just not going to happen. By the same token, no one is going to overpay
for your house, when another down the street is lower.
Both sides should have Options. What will you do ifÂ you can't getÂ
the price you want for your home? Will you lower the price? How much?
How long are you willing to have your home on the market?
For the buyer, you should have other homes you are looking
at. This is a tactical advantage since the seller will know you are also
looking at other property. It also takes some of the pressure off of you as the
buyer, to have more than one possible property in consideration.
The best negotiations involve personal meetings between
parties. It's very advantageous to have your Realtor meet with the Buyer's
Realtor. A personal meeting will bring words, voice and your body language all
into the equation, which is essential during negotiations.
Â The Buyer Agent will
have spent countless hours with their clients so, they will be able to best
represent the buyers, and to clear up any misunderstandings. Presenting the
buyer's qualifications and putting the seller at ease about the transaction.
Â Believe it or not,
electronic communication can sometimes be too impersonal. Sellers would like to
know about the buyer who is moving into their home Buyers would like to know
about the sellers and more about the community. Set up a personal meeting, it
will makeÂ a difference.
Case in Point
In a recent transaction a house was on the market with two
buyers. One buyer was a cash investor, who was going to "rent out the
house to students." The other buyer was going to make it a family home and
was looking forward to a big family gathering for Thanksgiving. The all cash
offer was for more, yet the owners took the buyer who wanted a family home. It
was their home and they wanted another family to love it the way they did. This
information got to the sellers via the personal meeting between the Realtors.