Real Estate Forum: Real estate negotiation tips that pay off
Question: Allison, we have our condo listed for sale in Keystone and want to be as prepared as possible before we get an offer – we’re thinking positive here! What suggestions do you have?
Answer: Great thinking! A positive mindset is the first step! Next, after you’ve received an offer, find out as much as you can about who you’ll be negotiating with before you start the process. Sellers need to know if the buyers are financially qualified to close a deal. Most sellers get hung up on the price. But, the highest price doesn’t always come from a buyer that can actually close the deal.
For example, if the buyers make a low cash down payment and the lender’s appraised value is for less than the purchase price, the lender may not give the buyers a large enough mortgage to close the sale unless the buyers come up with more cash. This can lead to further negotiations and a failed transaction.
You’ll also want to know how long the buyers have been looking for a home. Have they made other offers? Were any accepted? If so, why didn’t they close? Did the buyers back out or was the seller unreasonable? Your agent should be able to get answers to your questions by talking with the buyers’ agent.
Sellers should be aware that there are buyers who repeatedly make ridiculously low offers. Often these buyers have a reputation in the local real estate community. Ask your agent to check around before wasting time.
HOUSE HUNTING TIP: Buying and selling a personal residence is an emotional experience. Try to be as rational as possible in your decision-making process. Sellers should plan to counter any offer, even if it’s for less than the list price if it’s from a bona fide financially qualified buyer. Buyers should anticipate a negotiating process that could involve many counteroffers. Don’t give up until you’ve exhausted all possibilities. But, don’t pay more than current market value.
Many buyers and sellers view negotiation as adversarial. Turn this around and look at the dialogue as a process where both parties attempt to reach a common goal – the sale of the property.
Allison Simson can be reached at (970) 468-6800 or at Info@Sum
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