Real Estate Negotiation

Real Estate Negotiations Explained

eisenhauerteam Real Estate Leave a Comment

In today’s real estate market, there are exceedingly more buyers than homes on the market.  People are all looking for a good deal, a nice home, property, RV parking etc, etc.  Once a home hits the market with one or more of the qualities a buyer is looking for, there is a good chance another buyer – or five – are also taking notice.   The math is there, and it’s pretty simple.  That home has a value, and the value is whatever someone is willing to pay.  We can run valuations on the home to see what an appraisers opinion might be – but in the end, the value is whatever someone is willing to pay. This is where real estate negotiations are different that in previous years.

Real estate prices are negotiable (sometimes), and repairs and concessions are negotiable (sometimes).

So you’ve found the perfect home for sale, and you wrote a full price offer!  That’s fantastic.  The seller accepts your offer, and things are looking in your favor.  Now it’s time for real estate negotiations, and the home inspection repairs etc. This is where are current market makes things tricky.  In a buyers market, homeowners would do almost anything to help sell their property.  But in today’s sellers market, they know another buyer will likely come along – probably soon.  So they are not motivated to make repairs or supply credits.  Buyers are often frustrated by this.  They feel taken advantage of if the sellers won’t make repairs.  However, we often advise our clients to look at the math and the big picture.  If the repair is something serious, and they are willing to lose the property over that item – then it’s best to push back.  I have had more sellers refuse ALL repairs in the last year, than in the last decade prior.  That is something to keep in mind.  Our team of real estate agents will always look out for your best interest, but buyers and sellers have their own opinions and can be unpredictable at times.

Sellers love their home.  They put a lot of time and detail into it, and they don’t see the “problems” that most buyers do.  It can be difficult for real estate negotiations because for many sellers, the requests are personal.  So presenting the requests in s professional manner, supported by a third party inspector is very important.  If you think their sink is broken, that’s one thing – but if a professional agrees, that makes negotiating a repair much easier.  We highly recommend hiring a professional to do the home inspection for you.  Especially if you want repairs done.

The good news is that most people are calm and rational about real estate negotiations. They want to sell their home, you want to buy it (or vice versa), and everybody usually works together to come to an agreement. It might not be what either party hoped for exactly, but the goal is that both parties agree it’s fair. If the sellers dropped the price of their home, but don’t want to make a repair – are you still getting a good deal? It’s always good to run the numbers. Calculators run on batteries, not emotions. Make sure to keep the big picture in mind when making real estate decisions. Your instincts can be very helpful, but make sure to run the checks and balances against them with math. You’ll be glad you did later! Your real estate agents can always give you their professional opinions as well. We see these succeed and fail every day, so we are pretty good at assessing the situation. We work with our clients as a team to make sure you get the best possible results.

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