I must say, “in the past week I’ve received plenty of compliments from buyers, sellers, and agents and have shown a real interest in my blog material. Most of what I’m sharing is from recent data collected, the National Association of Realtors shares to agents, and my personal experiences.
What home buyers, sellers and realty agents are likely to encounter.
According to recent information from the National Association of Realtors, the National Association of Home Builders, and other reliable sources, the volume of home sales has declined slightly in the last few months compared to a year ago. You may hear many say the traffic has really slowed, or inventory is down! Factors that are affecting this; The Bull Market has many on edge. Mortgage rates are increasing, however, I’ve found that with an experienced agent and some creative tactics and knowledge will definitely make deals happen! An excellent relationship with one’s mortgage broker is always a plus. Non the less, the holidays will also slow the market traffic, and you will notice more lookers, and fewer folks willing to pull the trigger.
As the home sales market adjusts to slightly higher mortgage interest rates, and you’re a home buyer, seller, or real estate agent, your negotiation skills will become more important now than any time in recent years. As a long-time student of negotiation tactics, I’ve learned it pays to periodically review the key negotiation strategies most frequently encountered in home sales.
1.) WATCH OUT FOR THE “HIGHER AUTHORITY NEGOTIATOR.”
Experienced real estate agents can spot this negotiation tactic, which is used by new and repeat homebuyers. I first encountered it about 18 years ago from a young couple who were my tenants. They wanted to buy the house I was renting to them. The husband’s father was a lawyer and a friend of mine. This should have been my first warning however, I was confident we were on the same page.
Once we all agreed on the terms and a price, I wrote up the contract, the wife then said, I would like my father in law who is helping with the purchase review the contract. Note buyers purchasing an “AS IS” contract can bolt without reason within the first 15 days or inspection time agreed upon in the contract.
Well even though a friend, I just became a victim of the “Higher authority negotiator” tactic. This means the salees contract you think you have negotiated is subject to approval by a previously undisclosed higher authority.
When dad visited the home, and I know he was familiar with the home, he found alleged defects such as it was not a split bedroom plan, which he brought to their attention. He also pointed out the con’s of the location even though they’ve lived there over a year. So my buyers asked for a price reduction and revisited the terms we had already agreed upon.
Well, I was too confident in the deal and the next thing I knew the “higher authority” negotiation tactic, also known as “two bites from the apple,” I knew the value of the property and didn’t really want to sell. My tenants were happy there and more than likely would stay at least another year. My good friend and their “higher Authority” did not know I was not motivated to sell.
I was clear, honest, fair and shared that we reached an agreement on favorable terms to both of us. the buyers had been renting the home and knew it’s pros and cons, and if my tenants didn’t want to buy the house on the agreed terms that were fine with me. Well, they still purchased the home on the original agreed terms and dad put up the $45,000 down payment.
Looking back, if I had known there was to be a “Higher Authority” involved in the negotiation, I would have suggested we all meet together to work out the details at the same time.
NEXT BEWARE OF NON-STOP NEGOTIATORS WHO NEVER QUIT “FINDING REASONS TO BEAT YOU DOWN!” We’ll visit this tomorrow.