Negotiating real estate is simple, it just takes an old skill we all learned in preschool, COMPROMISE!
Compromising is a critical element when buying or selling a home. If you aren’t willing to compromise, then you can expect a longer sales cycle. If you’re okay with that, then by all means stick to your guns! 😉
But, for those who tell us, “sell my St. Louis home fast”, we always try to sell your home fast! St. Louis real estate market is strong and homes are moving quickly, but we can’t just give credit to a strong real estate market.
Many times homes sell fast because buyers and sellers compromise during the negotiation process.
Art of Compromise and Negotiation When Buying or Selling a Home
This month we want to talk about the art of compromise and negotiating, two critical attributes needed in any real estate transaction.
We are happy to do the actual negotiating, that’s our job, but to accomplish that, every buyer and seller is going to be called on to compromise at some point. That might take place at the very beginning of the selling process, or later on when we are dealing with the home inspector.
Don’t get hung up on asking price when negotiating real estate
We all know there are times when offering less than asking price for a home is warranted and times when offering more than list is needed to buy a home.
Both the home buyer and seller need to carefully calculate what their bottom line is, something that should be discussed when first choosing a realtor.
If you’re selling your house, you can’t take it personally when a buyer offers less than they think your house is worth. This is a business deal, even though you love that charming Cape Cod that you raised your children in—it doesn’t matter, and you need to get over it.
What is your bottom dollar?
Think about that beforehand and be prepared to let your realtor negotiate to that number, if needed. Any good realtor will always try to get you top dollar for your listing.
Buyers, same goes for you.
Think about how high you can comfortably go, and let the negotiations begin. Buyers and sellers need to think about whether it is worth losing a deal for $1000 or $1500?
Remember that each $1000 up or down is a difference of $5 in monthly payments.
Keep it all in perspective and don’t let your emotions get in your way when negotiating real estate offers.
Inspections are a part of negotiating real estate, just compromise
Home inspections are a normal and necessary part of negotiating real estate.
Once an offer is accepted, the buyers will schedule an inspection of the seller’s home by a licensed home inspector.
Once that is completed the buyer will receive a thorough report of all the problems, large and small that exist in the home. This list can literally be pages long—truly!
Many municipalities require the seller to also obtain a municipal inspection.
This can also be a long list. First off, if it is on the municipal inspection the seller must fix it and it must be rechecked by the municipal inspector. These items are usually safety related, and do not encompass all the categories of the regular home inspection.
Problems usually arise when deciding which items from the regular inspection the seller is willing to fix, or compensate the buyer for.
Here is where compromise and negotiating come into play. Remember, you can always counter offer during any real estate negotiation.
It is not realistic to think a seller is going to fix everything on the list. Ask yourself what is of greatest importance to you. If the house needs a new roof, and there are also a myriad of little things, think about asking for the roof (big ticket item!) and be willing to handle the stuck window on your own.
If there is a lengthy list of smaller items and the mere thought of fixing all of them with a licensed contractor overwhelms you, consider offering to pay a designated amount towards those repairs at closing as part of the buyer’s closing costs.
Both buyers and sellers need to be willing to compromise on the inspection notice.
Again, think about your bottom line. Many a deal implodes over inspections.
Give and take, and realistic expectations are needed. Let us help you negotiate so you don’t lose the home of your dreams.
Now to the fun stuff!
THE BLANKENSHIP SIPS
As I said, rainy days and Mondays get me down, as well as weeks of dreary skies, no sun, and still wearing my winter coat in April. So how about some cocktails?
This month I thought sunny cocktails might speak to the weather gods!! Here are few to try out.
The Sun Also Rises from 10th Kitchen
- 2 oz. light rum
- ¾ oz. fresh lime juice
- ½ oz. fresh grapefruit juice
- ½ oz. maraschino liqueur
- 1 teaspoon absinthe or Pernod
Combine all the ingredients in a shaker of ice then SHAKE-STRAIN-SIP!!!
Sun Slush from Ocean Spray
- 2 oz. of Cointreau
- 5 oz. of Ocean Spray Cranberry Juice Cocktail
- 1 oz. fresh lime juice
- Lemon-lime soda
Mix the first three ingredients in a Collins glass filled with ice. Top off with soda. Garnish with fresh mint, cranberries or lime if you feel the need. Me, I’d just drink itJ!
Liquid Sunshine from twotwentyone.net
- 3 oz. Malibu rum
- 5 oz. peach schnapps
- 1/3 cup of OJ
- 1/3 cup of pineapple juice
- Splash of grenadine
Pour in a glass over ice. I think this one could also be made a slush. Throw it all in the blender with ice. Okay, maybe save that for a hot summer day.
I know we usually end by thanking each and every one of you for helping us grow our business, but we could not do it without your listings, your referrals, your shared postings on Facebook, and so much more. Please know your kind words and all you do for us is greatly appreciated.
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