Greensboro Triad Real Estate Blog

In Buying or selling a home Negotiating is work and knowledge is the key to a successful strategy. How much homework and research you do is going to directly translate into how well you do.  I am still amazed at agents that simply walk in to a home and then call to ask "Well I know the list price is $XXX but how much will they really take?"  Are you for real?  The sad part is that there are agents out there that will throw their clients under the bus to get a deal. 

My home sellingclients and I always start out the process by discussing strategy for the negotiations that will be coming once we start getting offers.  We do our homework and spend time working on the calculator to see where their bottom line is and preparing them to walk away if someone does not come up to that dollar amount.  We also need to be aware of everything about the home and what they may ask for.  Take a good detailed look around the home (maybe even pay for a home inspection) you can spot small things that will need repairs and head off any complaints or repair requests.  The hardest thing to do is to try and take the "personal factor" out of the transaction.  If the sellers can remove themselves from the transaction and not take any criticism of their home personal they will be able to negotiate and close the deal much easier.  Now none of this addresses all the issues to do with marketing and exposure of the home that is up to the Realtor after all that will be a whole other blog.

In home buyingit is the same basic plan.  I do my homework in order to discover what the seller's break even point is going to be.  A simple search of the register of deeds site to see what mortgages they have on the home.  Then to do a little reverse magic to see what their approximate payoff is.  Then of course you have to add in commissions, taxes, and deed prep fees.  Now we know about what their absolute bottom line is to walk away without paying.  Of course not all sellers are desperate to get out of their home and onto the next.  Noticing somethings in the home help.  The most obvious is the home vacant?  So are they now carrying two mortgages?  Coaching is a big part of this we must condition our buyers to also be ready to walk away from a home in case the sellers are not willing to come down to our price.  I always try to keep my clients from becoming "house rich and cash poor".  While I do like return clientele I do not want to have to come back a short time later and help them with a Short Sale. 

Many of these points help but just paying attention to details around the home and also listening closely to the other side can sometime tell you volumes of the parties on the other side of the negotiating table. 

The Author:

Larry is a Greensboro Residential Broker, CARTUS Certified Relocation Specialist, Previews luxury homes trained, SRES & CHMS who can assist you with the purchase and/or sale of real estate in the Piedmont Triad Area that include but, not limited to Greensboro, High Point, and Winston Salem, NC.  If you're relocating to or from any other area of the country, Larry connects you with a member of our national team of relocation specialist in your destination or exit city of choice.  The destination service is of no cost to you!  As your Personal Concierge Realtor Larry provides customer service that is equal to none.  Your complete happiness is our top priority!  Larry Story - Coldwell Banker Triad Realtors - 336-327-1841 also at http://www.storybookhomes.ws

Copyright© 2009 By Larry Story, All Rights Reserved...

I had a rather spirited conversation the other day with some agents that we will say are primarily "listing" agents.  We were in a discussion of the local real estate market and the "mood out there".   Well I think the first verbal jab was thrown that the depression of the market values of some neighborhoods is the fault of the "buyers" agents.  They basically said that the buyer's agents out there are beating the prices down with their negotiating.  Now not to be cold hearted or anything I am both, I have listings and buyers.  I have actually shifted business now to more buyers.  That is an all new post yet to come.

Anyway I spoke up (imagine that me not keeping silent)  and asked them why they caved in??  I am sorry you can not negotiate as good as the agent you are up against but,  you need to educate you sellers and work with them closely.  Secondly and by far maybe even more important PRICE IT RIGHT THE FIRST TIME!!!  Sorry that is a sore point.  These agents of course said that they did.  Although these are the same agents that I hear talking about working out a plan with their sellers that they will start at one price but, then lower it every thirty days?!?!?!  OK well that is appeasing the seller just to get the listing.  If you can explain and educate the seller you will not have to drag out the listing.  You get the most attention and viewings in the first few weeks of a listing.  If you continue this price lowering now you are looking desperate.  That is meat on the table for a negotiator.   I use to be in corporate America and was in international and domestic purchasing.  My job was to negotiate.  I enjoyed my job.  I enjoy my job now even more.  So believe me whether I am buying or selling my clients have learned to trust me.  OK enough ranting. 

So to end this little rant I will say they walked away quietly.  Of course many agents out there and I get along great.  There are some that take it personal when you work diligently for your clients.  Oh well sorry it's just business.