Home-selling tips: Negotiating to achieve your goals
Special to the Sun-Bonanza
Negotiations occur throughout a real estate transaction. Sometimes you even have to negotiate to set up a showing to see the home.
Once you get past seeing the home, there comes the evaluation of what is being offered and how it works with the Buyer’s wants and needs.
Most people focus on price, but there can be so much more involved that has a significant impact on the viability of the property for a Buyer.
If a Buyer needs to move right away, the flexibility of the Seller to vacate can be more important than price. Someone settling in and starting a new job in the area wants the home stability more than haggling of the last dollar.
The condition of the home can be a factor. Some folks just aren’t handy and can’t be bothered fixing it up. Others want to build sweat equity by improving the deferred maintenance home along the way.
Support Local Journalism
In each circumstance, Buyers will negotiate to pay accordingly. There are typically more Buyers looking for the home that is in pristine condition, but the question becomes how many of those Buyers are willing to pay top dollar for the home? Enter negotiation.
There are some areas of a transaction that can lead to negotiations during the course of escrow. These can stem from physical and pest inspections requiring repairs, a water quality test indicating the need for a filtration system, etc.
When repairs or modifications needed to make the home comply with the lender’s requirements exceed the maximum repair amount provided for in the sales agreement, it is time to negotiate.
A Seller can refuse to pay the overage amount, a Buyer can agree to pay it, they can split it, etc. There are pros and cons for both sides, and the overall circumstances involved must be considered to properly negotiate for both parties.
It is rare when a party doesn’t want to negotiate and a transaction goes together. There are so many areas that need to be massaged for the benefit of all, that without negotiating the details, it is almost impossible to find a home and circumstances that exactly match what a Buyer is looking for.
In a very hot market, some Sellers hold their line and Buyers that are competing with one another will compromise their standards and buy the home. Conversely, in a slow market, Sellers may have to compromise their standards for a Buyer that won’t adjust.
Regardless, we aren’t in that type of market. If you don’t want to negotiate, settle in for a frustrating process in your home search. If you play too many games in your negotiation, you might find yourself on the outside looking in.
Our Advice: Negotiation is essential to generate an agreement that works for all parties. There are so many components to a real estate transaction that it is inadvisable to lock up on one thing.
If you negotiate to within $1,500 and you want the deal, make it. You will likely pick up far more value than that during the course of escrow. Things will pop up such as surprising repairs, delays that cost one party or the other, etc.
Be careful about splitting hairs when you negotiate the basic agreement, you may end up giving much more in the long run by introducing that mindset to the transaction. How much negotiating should you do?
Your Agent will help you determine that by considering many variables, circumstances, and factors and how they affect your wants and needs.
Don’t worry about negotiating. Be clear about your wants and needs and the negotiation process will be simple. It is the means for you to achieve your goals, or not. Either way is okay if you are clear on what an acceptable outcome is for you.
Lisa Wetzel & Jim Valentine, CDPE, SFR, work for RE/MAX Realty Affiliates in the Carson Valley. Visit carsonvalleyland.com or call 775-781-5472 for information.
Support Local Journalism
Readers around Lake Tahoe, Truckee, and beyond make the Sierra Sun's work possible. Your financial contribution supports our efforts to deliver quality, locally relevant journalism.
Now more than ever, your support is critical to help us keep our community informed about the evolving coronavirus pandemic and the impact it is having locally. Every contribution, however large or small, will make a difference.
Your donation will help us continue to cover COVID-19 and our other vital local news.
Start a dialogue, stay on topic and be civil.
If you don't follow the rules, your comment may be deleted.
User Legend: Moderator Trusted User