Jack had just pulled away from their condominium. When Jill pulled out the next check point. Jack frowned. “What? It’s a thirty minute drive and it’s only a couple of lines long.” Jill said with a lilt in her voice. “Ok, said Jack, but don’t quiz me when your done.” So Jill began to read…………
#8 Negotiate with Knowledge
This is probably the check point that most readers will skip. I am sorry to report that there is not magic bullet or crystal ball. The best asset you have for negotiations is your REALTOR. Take the time to review the contract template your REATLOR wants to use BEFORE you start looking for a home. Understand all the negotiation points and timelines. Knowledge is your friend and the more you understand the negotiation points in the contract the better you can respond in the heat of the battle. That’s why the two super bowl team practice before the Super Bowl…it’s so they understand what their opponent is going to do in a situation so they can be at the RIGHET PLACE AT THE RIGHT TIME AND THEN……..TOUCHDOWN!!!!
Let’s back up a little and talk about when your negotiation starts. It doesn’t star when you like the home, or after you have put in an offer. YOUR negotiation starts when you first star to read the Multiple Listing Service information with your REALTOR. There are subtle clues in the general listing and sometimes more in the Agent remarks(available to agents only) that could help you formulate your game plan from the very beginning. This doesn’t seem like much of a negotiation, the seller is basically telling us what type of financing they will accept and that they are keeping the fan in the bedroom and so on. Understanding that harlines the seller has drawn will help you to decide if you can live with those terms or if there are going to be a hardliner throughout the process. Did you have trouble making an appointment to see the property? Did they move the showing time, did they shorten it? Did they give a reason for making changes to the appointmen? Were they reasonable reasons? That’s subjective, I know, but if a child is sick or they have family in town…that’s ok. It’s nice to know the reason why the property is being sold, but it is not your right to know. Sellers guard their reason fro selling very heavily and it is within their right to do so. The worse thing you could do is visit a home in search of the upper hand instead of seeing if this could work as your next home. Negotiations are meant to be in the best interest of both parties.
What the seller sees as value, you may not. The buyers set what is valuable by buying homes they like. Those sellers that don’t move with the market, ie change their selling price or fix problems with the home, will be left behind. Days on market is often seen as an indicator of urgency to sell. Your REALTOR can help you with these when he gathers the competitive market analysis for that subdivision. It may be that homes in that neighborhood sell slower of it may be that the buyer is holding the line. Let your REALTOR go over the competitive market analysis with you in person and in detail. This is what they do for a living and it is not as cut and dried as you may think, You really nee a detailed Competitive Market Analysis to understand what direction you should take your negotiation.
“I guess I was really hoping their was a magic bullet to the whole negotiating thing.” Jack said with a sigh. “Knowledge is Power, my dear.” Jill said with a wink. And they eagerly awaited the next check point entitled:
“Jack and Jill Consider a Home Protection Plan…The Home Buyer Checklist You’ve Been Looking for (10 of 15)”
We hope you’re enjoying our series and that it helps you on your way to……………………………
Live Life to the Fullest,