|
|
|
|
|
 |
|
|
|
|
|
|
|
|
|
|
|
Negotiation, How to Get to Win/Win - 06/14/10
When actually buying a house, it doesn't take five minutes to get your deal signed by all parties. It usually takes days. Rarely is an offer written that doesn't get countered. Exceptions to that are short sales (which should generally be avoided at all cost). In a short sale, the seller has to sign the contract and "accept" the deal because they still own the house, but technically the full acceptance depends on bank approval, with the bank agreeing to take less than what is owed on the loan or loans. In that case, the seller is really the least important player in the transaction. So you'll see the offer signed by the seller quickly, as written, especially if it's written cleanly. The seller then sends it to the bank and steps aside and everyone waits an eternity for an answer.
A short sale is about the only time you'll see an offer signed exactly as it was written. Countering seems to be part of the "normal" offer process. To reduce the number of counter offers and the stress involved, write your best offer first. Or be very, very close to that. Why? The "win/win" component is easier to come by if buyer writes a strong offer and seller isn't unreasonable in their response.
A short sale is about the only time you'll see an offer signed exactly as it was written. Countering seems to be part of the "normal" offer process. To reduce the number of counter offers and the stress involved, write your best offer first. Or be very, very close to that. Why? The "win/win" component is easier to come by if buyer writes a strong offer and seller isn't unreasonable in their response.
Buyers want to steal a house today. That simply isn't going to happen. It's a business deal for both sides. If you as a buyer know the neighborhood and what the house should be worth, by all means don't offer 20% below that appropriate neighborhood price. If you want to offer less than a (hopefully) realistic seller asking price, be reasonable. 5% under asking price is not too insulting. 40% is.
Regarding closing costs: it is not an automatic guarantee that they'll be included. You buyers can ask. Asking for 3% of the purchase price credited to you isn't a sure thing. Be prepared to wiggle on this through the counter offer phase IF you came in very low on price. Or even if you offered a higher price! There are no rules on closing costs or anything else in a real estate contract.
Sellers, buyers are more nervous than you in this phase. Be kind, don't over react if you don't like the offer. It's OK to sleep on it before responding. Residential real estate is very emotional, even though, as we said, it's a business transaction. It's also an experience with real feelings and real reactions. Sellers, be cool and calm. You'll get there. Be more concerned about seeing a buyer's pre-approval letter during the negotiation phase. The rest you can work through.
Most buyers and sellers are somewhat apprehensive upon getting their deal signed. You still have to get escrow open, make sure the buyer's good faith deposit is sent in immediately and that all parties keep to their timeline and schedule. There can be excitement of course upon "getting it all signed," and some celebration is in order.
But sellers, don't really celebrate until you hand over the keys (and that better be on close of escrow day!), and buyers, don't celebrate until you are handed keys. Then, by all means, dance around a bit. You've earned it.
Article by Open House Genie
Copyright 2010
Used, copied or quoted with permission only.