Are you a Fredericksburg home seller or buyer and want to get the best deal? If so, you’ll want to read on further on my negotiation tactics that you may try for yourself. I am a negotiator. The art of negotiation should only be left to a professional. It is a very complicated process. No two real estate transactions are the same. In every transaction, all parties want to feel they've won. Some just want to feel the offer was fair. There are rare occasions where the party feels they lost. They may have had no other choice but to sell or buy. Remember, in real estate, there’s a complicated road ahead that can be very unpredictable. This world is not always perfect.
Who owns the Upper Hand?
In Fredericksburg at this current time, inventory is very low. It is not unusual to see multiple offers on the same home sale. This would indicate to me that we are in a seller’s market. The seller has the control. CAUTION! Just because you’re getting buyers competing where the deep pocket usually wins, leaving you in a very pleasant state with an offer higher than you ever dreamed of receiving, remember that it has to appraise. I call this technique “Buying the contract”. The buyer knows good and well that the appraisal will never come in. When it comes in low, they can ask the seller to adjust price to meet appraisal or walk away if they don’t want to pay the difference. The third to take it as it lays almost never occurs. Times where supply is high and demand is low, you'll find that you may be in a buyer’s market. If the seller wants to play hardball, you can simply go down the street to another similar property and try again. The Realtor should advise you of the current market in your area. Sellers favor in a seller’s market and buyers in a “buyer’s” market. Your home may be in a position to shine in your opposing market. Is your home unique? Are you in a very desirable neighborhood? Are you the only home on the market in your Fredericksburg Community? If so, a buyer may be willing to negotiate more because they really want your home and there’s no other alternative. Are you a buyer that uses cash or is your financing all ready approved for a quick sale? Will you need closing cost assistance from the seller? If not, your competition may. This may give you the upper hand. Sellers are looking for the sure thing. No seller wants to take a chance on a deal falling through the cracks because the buyer’s financing was questionable.
What is the Property Condition?
Are you a buyer that noticed that the home you like is in need of desperate repair? If so, you have two shots to negotiate. The first is with the original offer when it is presented. Will you ask seller to the repair in the contract or adjust the offer price to reflect the repair costs? I seem to advise my clients to get a licensed home inspector check the property and provide a report to the seller along with the request on the concerned items to be replaced or repaired. This shows proof. If they say no, you will have to make a decision. Sometimes they can’t say no. Perhaps, if you are financing, your lender may require the items fixed or you can’t get final under writer approval. Please keep in mind that the seller may have feelings for the property. Don’t appear that you are picking it apart. Show concern to you and your family’s health and safety. Pick your fight. Overlook the simple items you can fix with ease. I once had a deal that fell apart over a fifty cent electrical outlet cover that was cracked. Don’t let this be you. As Is properties are just that. Sellers don’t have to fix anything or negotiate the price on these. The real estate professional should identify these properties prior to showing.
Who is the BEST Agent?
Pretend you are in need of a heart transplant. Two doctors approach you and ask to perform your surgery. The first lays out the entire procedure like a map and provides you with a wealth of information. The second approaches you and begins with how much cheaper he can do the procedure for you. Who do you want to use? I hope you decided on doctor number one. Now, think about your real estate transaction. This is one of the most important times in one’s lifetime. You deserve the best. The secret to my success is simple. Provide a strong negotiation skill with proper communications. I make the other party feel important. I don’t bully them. If the other party to feels they are getting the great deal, they will negotiate. I’m a top Fredericksburg REALTOR with a back ground in law enforcement. I know how to get you the best deal.
Tom Smith, the author, is a full time licensed real estate agent with Century 21 Adventure Redwood in Fredericksburg, VA. Tom knows Fredericksburg Real Estate.
By: Tom Smith
Associate Broker, Century 21 Adventure Redwood