Ed's Chesprocott Region Blog

How Good are You at Negotiating?

How Good are You at Negotiating?

That was a question that came from left field from my buyer client and caused me to ponder the purpose of that question before I responded. This client was getting upset at not being able to find a home to purchase.

Part of the frustration was the size of the house needed and the amount of money she was able to spend. The additional frustration was borne of the lower than normal inventory for being in winter.

How Good are You at Negotiating?

Her thought was to go well beyond her upper financial cap and attempt to get the sellers to negotiate down to her comfort level. There are many factors that need to be considered when evaluating the house one wants to buy and how the process of getting a good deal is worked, or negotiated.

First, assuming the idea house has been found, the real estate agent for the buyer has several ways to determine how much leverage they might have when negotiating the contract. Has the house been priced competitively for the market and for the current condition of the home? And over priced hone may have a lot of movement potential, but if the sellers are trying to hit that big slam themselves, they might be less likely to give up much.  Stands to reason if they had the house listed too high.

What Types of obligations are there against the house? A trip to town hall will allow the agent to see what types of encumbrances, or liens, there may be on the property, all of which would need to be resolved, before the home could pass title to a new owner.

HELOCs, or lines of credit in the form of equity loans could be there and have money owed against them. Tax liens or mechanics liens for work done but not paid, or even judgments against a title holder of the home.

 

How Can An Agent Get Us a Good Negotiating Position?

Negotiating strength comes first from having a sound offer. This starts with a pre-qualification letter from a lender that may not only show the value for which the buyer is approved, but also a property specific letter. This lets the sellers know that their agent has talked to the lender in depth about the property.  The agent may ask that the letter show a value less than the total amount the buyer can pay.

If the property is high for the market, then the offer can be sent forward with recent comparable sales. These may serve to reinforce the agent's claim to their sellers that the home is over-priced and that it is apparent to anyone that takes the time to do some research.  This may allow the agent to get some concessions on price for the buyer.

A low-ball bid strictly to get a strong negotiation should be looked at by the sellers as just the start of the process. A counter offer of reasonable value will let the buyers know they will negotiate but are not willing to come down to that low-ball price. If the buyers and sellers use their common sense, they may reach a common ground and get the contract initiated.

With all the information available to a consumer online, it is possible for a buyer to have a good feel for a home price and respect and understand that the sellers want to sell it at a reasonable price, just as much as the buyers want to buy it for same.

How Good are You at Negotiating?

 

 

Search for all Connecticut homes 

Subscribe

 

 

 

 

Do you know somebody who is behind on their mortgage and doesn't know what to do? I may be able to help them, especially if they are facing foreclosure!

Get Help with Short Sale in Connecticut

    www.ctshortsalesilva.com

 

 

 

 

Whether looking to buy or sell, we service the Greater Waterbury towns of Beacon Falls, Bethany, Cheshire, Naugatuck, Middlebury, Southington, Thomaston, Waterbury, Watertown and Wolcott 

Ed Silva  Mapleridge Realty, LLC,   203-206-0754

Comment balloon 64 commentsEd Silva • February 19 2016 06:39PM
How Good are You at Negotiating?
share
How Good are You at Negotiating That was a question that came from left field from my buyer client and caused me to ponder the purpose of that question before I responded. This client was getting upset at not being able to find a home to purchase… more
Real Estate Market Statistics for Waterbury CT for January 2016
share
What’s My Waterbury CT Home’s Value January 2016 Search for Homes in Waterbury CT Currently in Waterbury CT there are 331 active residential listings for sale, with 49 new listings being added in January. The homes for sale in Waterbury CT range… more
You Qualify to Buy the House, But Can you Afford It?
share
You Qualify to Buy the House, But Can you Afford It? Here in Central Connecticut we are still in a buyer's market. This adds additional value for buyers, as there are homes that are within the upper reaches of their buying power that would be… more
Real Estate Market Statistics for Prospect CT January2016
share
What’s Happening in The Prospect CT Real Estate Market January 2016? Currently in Prospect CT there are 46 active residential listings for sale, with 5 new listings being added in January. The homes for sale in Prospect CT range from a 720 square… more
What's the Most Reliable Way to Search for Homes On-line
share
What's the Most Reliable Way to Search for Homes On-line The Internet is where 95% of all potential home buyers start their search. It may be a focused search if they know where they want to be, or of relocating, they want to get a feel for what's… more
Buying a Home Isn't Much Different Than Buying a Car
share
I almost fell off my chair when my client uttered that phrase. I had to do a double take and ask her to repeat it so that I was certain that I had heard it. It was rephrased but the message was still there: Like a car, one should never pay list… more
Phil and Chuckles Want an Early Spring
share
Groundhog Day 2016, but unlike the movie with Bill Murray, we will not be stuck in a loop of winter like we were last year. At dawn of this day, Punxsutawney Phil emerged from his burrow and was not frightened by his shadow. As thought on cue,… more
So What Can My Central Connecticut House Sell For?
share
So What Can My Central Connecticut House Sell For? Being called to do a market analysis on a home is something we offer as part of our service. It is a way to get a listing and show the seller that we know the market. In order to give the home… more
Seven Angels Theatre Celebrates 25 Years in Waterbury CT
share
This year marks the 25th Anniversary of the founding of Seven Angels Theater in Waterbury. Now housed in the Pavilion at Hamilton Park, it's roots came from a writers strike in Los Angeles in the early 1990's. With assistance of some theater… more
23nd Annual Chocolate Lover's Expo Southbury CT Jan 31, 2016
share
A Chocolate Lovers' Expo will be held on Sunday January 31 from 11 a. m. to 3 p. m. at the Crowne Plaza Hotel in Southbury CT. The event is sponsored by Easter Seals of Waterbury Guests will enjoy door prizes, music, special drawings,… more