Keystone Real Estate: The art of real estate negotiating
Whether buying or selling a property in Keystone or one in Breckenridge, Frisco, Silverthorne, Dillon (or any real estate for that matter), negotiation is crucial to a successful transaction. Every negotiation should follow a formula – beginning with preparation and ending with a proposal accepted by all parties. Negotiating is about gains and concessions between willing parties. The more educated a client is, the better the chances of reaching a smooth, mutually acceptable conclusion. That’s why it’s SO critical to have a knowledgeable and experienced broker to advise you!
To make a successful offer to purchase a property is the result of a broker who has done their ‘prep work’ thoroughly and advise their clients accordingly…AND sellers who choose to bargain! Spending quality time on the preparation phase will reduce the time and stress involved in the bargaining phase later. The experience of a real estate professional serves either side to glean a clear understanding of all aspects of the transaction.
Sellers, buyers, and agents can prepare for bargaining by finding out the facts. When negotiating a property’s sale, sellers and buyers can’t ask too many questions to enhance their negotiation position. The prime reason is to determine how motivated the other party is to buy or sell. The best way to get the information needed is by asking key questions in a friendly and gracious manner.
It is imperative to have answers to these questions:
1. Why is the seller selling his property? The answer to this question will help the buyer to make an offer that meets the seller’s needs. If a seller needs cash, a low cash offer on a run-down house may be the ticket. If a person needs money for retirement, they may like down payment with a seller carry back.
2. What was the seller’s purchase price? Without this information, buyers are at a severe negotiation disadvantage. If a home was purchased for a low price years ago, there’s possibly a lot more wriggle room than if it was purchased within the last few years. However, if the seller has a high-motivation reason for selling right now and needs a quick sale, possibly a cash purchase will be beneficial to BOTH seller AND buyer!
3. Does the other party have a time deadline? If one party has a 1031 exchange or is already purchasing another property, then there is a helpful sense of urgency. Without a timeline, buyers and sellers can drag out the process by not making decisions.
4. Has the seller obtained a professional home inspection report? Today’s ‘smarter’ real-estate brokers might suggest that their sellers get a professional inspection report at the time of listing the home for sale. This makes the seller fully aware of defects. They are responsible to repair them or to fully disclose them to prospective buyers – averting future lawsuits. Even so, ‘smart brokers’ include a contingency clause for the buyer’s approval of their own inspection report obtained at the buyer’s expense in their purchase offers.
5. What is the buyer’s motivation to purchase a property? If the buyer has indicated a key reason why he is considering a particular house (great condition, outstanding location or view…or just need to move in quickly), the seller can use that information to enhance
his negotiation position.
6. It’s also important to ask creative open-ended questions – to find out if there is anything else that needs to be considered!
7. Lastly, negotiate only with people who want to negotiate. If there is weak motivation by the other party, there is not a strong climate for negotiation. However, if the other party
is highly motivated, then there is a strong circumstance to negotiate your best price and terms.
At the very least, negotiation is an art…and, in many instances, can be a science! Hopefully, you can now see why it is SO critical to have a broker who has many years of experience and a viable ‘working’ knowledge of a certain market to serve
as a STRONG negotiator. Therefore, whether buying OR selling, why not put my 35 years of experience in selling real estate and my comprehensive knowledge of the Keystone market over the past 20 years to work for YOU?
If you’d like to find out more about the Keystone market, current availability of properties, how we market our Keystone listings, call Craig Walsh at (970) 376-0199 or email at firstname.lastname@example.org.
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