In a market replete with short sales and foreclosures, negotiating any sale can be a win-win for both the buyer and seller. Buyers should look at homes in terms of what is really valuable to him or her. One buyer may be willing to pay more than another for the same home.
Even when a property is perfectly priced, and the comparables support this price, buyers will systematically offer something that may be far below the asking price. After the real estate and mortgage markets officially collapsed in 2007, a new breed of buyers emerged expecting to offer some magical percentage of the asking price, as if this were customary and reasonable. Some of these offers were and are insulting to the property owners to the extent that the sellers would not even respond with a counter-offer.
Negotiating price, terms and conditions is a process of compromising where both parties give up a little something in order to complete the transaction that is fair and equitable for everyone. Being unrealistic on either side of the transaction only stalls the negotiating process and may create animosity to the extent that the deal dies completely. Price is only one component of the deal. Other negotiated items may include the time of possession, personal property included in the sale, which party pays for title insurance, and who agrees to the recording fees.
Value to a buyer should be perceived through a perspective that includes whether the property itself satisfies the buyers needs. Remember, there is no absolutely perfect house. Even the people who had homes custom built would tell you that if they had to do it over again, they would have made additional design changes prior to signing off on the finalized plans. With that said, buyers should come to the negotiating table with a reasonable offer and expectation that the transaction has value.
Mario D'Artagnan is a broker associate with Realty World Florida, Inc. He is a former investigator for the Florida Real Estate Commission. He is also a former real estate instructor. He is a published author and has been a keynote speaker on the subject of agency law. He is also a veteran of the U.S. Air Force. For questions or comments contact him at firstname.lastname@example.org or call 239-565-4445.