Posted on 12. July 2010 06:23 by qmiskini

 

 

"Is there any wiggle room in the price?"  It's a great, simple innocently straight-forward question every well-schooled Buyer's Agent should always ask. Why? Because it sets up the conversation with the Seller's Listing Agent that hints the Buyer is interested and is looking at options - of which price is always a big concern. It's a good psychological tactic - and it gets the Listing Agent prepared, when an offer is received, to feel there is flexibility on both sides ("wiggle room") so that the Seller becomes more inclined to find a pricing solution and not be insulted if the original offer is lower than expected.

These days, the strategies and tactics employed in helping a Buyer get the absolute best deal on their home purchase - one of the principal roles of the Buyer's Agent, or helping the Seller receive top dollar for the sale - one of the principal roles of the Listing Agent, requires a higher level of negotiating skill and problem solving posture than any time in recent memory.  So what constitutes a great deal and a win-win for both a Buyer and a Seller?

For short sale and Foreclosed properties, it's all about finding the seller’s lender or the Foreclosure Bank or Investor's bottom line.  The bank's and investors have no emotional attachment to the property; they have a balance sheet and a time-line and are managing revenue and expense - gain and loss and an ever-increasing pile of federal legislative dictums.

Despite the media focus on foreclosures, retail sellers still populate the majority of the home selling market (counter to the belief that distressed properties make up the vast majority of homes for sale today.) Balancing the Fair Market Value (FMV) of a home, the physical condition of the property, level of “showability” and the true bottom line requirements with the perceived “hot competition” of all those supposed “undervalued” distress sale properties is becoming an art as well as a science. 

Everything should start with the bottom line – what is the net cash left in the transaction for the Seller after all fix up costs, fees, expenses and the like. Sale price is actually less important than the net figure at the end. And of course, market pricing in this tough Buyer’s market is critical.  For the Buyer, working with a Realtor who can clearly understand and articulate what the Seller is facing and needs to achieve makes framing a smart, price conscious and negotiable offer – one which beleaguered Sellers can work with – a very important part of pre-offer research.  The same goes for Listing agents who must carefully and fully brief their Sellers on the current prevailing Buyer psychology so that Sellers do not get over emotional when receiving low first offers, and do not miss the opportunity to find areas of agreement that can overcome price negotiations and unnecessary hard feelings.

If ever there was a market that requires patience, persistence and GREAT RESEARCH AND NEGOTIATING SKILLS, well… we’re here!