Lisa and Jim's Northern Nevada Real Estate Blog: Northern Nevada Real Estate Forces Beyond The Price

Northern Nevada Real Estate Forces Beyond The Price


Northern Nevada Real Estate  
Forces Beyond The Price  
Lisa Wetzel and Jim Valentine RE/MAX Realty Affiliates  

Forces Beyond The Price


Price is always one of the first aspects of a conversation involving real estate. What was, what is, what will be, what could have been, etc. Whether at a cocktail party, or sitting at the Agent's desk, invariably the topic will move to pricing. Price will always be a major factor in real estate, but there are many other influencing factors beyond price that dictate the success of a real estate negotiation.


The Bank Owned and Short Sale transactions have made the "As Is" sale much more acceptable than it was historically. Buyers are now resigned to buying homes with the defects that are disclosed and discovered during the transaction. In such transactions the price is usually discounted in an amount greater than the anticipated repairs as an accommodation for the "As Is" status. Sometimes the "As Is" requirement restricts the sale to a cash only Buyer because of the nature or extent of the repairs. When that happens the price is usually forced lower than what could be otherwise obtained.


Other forces that affect real estate transactions can become matters of principle by one or the other party. One such factor is the terms of the occupancy. Should you close on Friday or Monday? Depends on whether you are moving in or out. Traditionally, the day the escrow closed the Seller moved out. That doesn't always work now because of many uncertain aspects in today's transactions. Even a simple loan can be unexpectedly delayed by funky underwriter requirements. Sellers are loath to pack and move without the certainty of closing. They will often demand time after the close of escrow to move, which doesn't always work with a Buyer that must be out of their existing residence. This issue can have significant impact in negotiations.


The many costs of the escrow process can influence a transaction. Some Buyers need Seller assistance in this area, i.e.- a credit for 3% of the purchase price. Without the Seller assistance they would not have sufficient cash to buy a home, and they are willing to pay a little more for the home for the opportunity.


Other contributing forces include friends and family in the neighborhood. This isn't only for Buyers moving to be near them, but Sellers wanting a good neighbor for those they are leaving behind. Zoning can help you if the Buyer has a specific goal, i.e.- multiple dwellings on one parcel. Privacy or transparency - being at either end can be a powerful motivator for a Buyer. Time can influence a transaction. Brevity usually trumps, but not always. Some people want longer to close and you can benefit by accommodating them.


Our Advice: Always learn as much as you can about the other party's motivation. The more you know about why they are doing what they are doing and how soon they want to do it the better you can adjust your negotiations to work for the benefit of both parties. That is how the best transactions are made, thinking of the other side's needs as well as your own. You will get what you want and often at a better value than trying to muscle your way through pushing hard on only the price . You might get the price pushing hard, but give up much more in other areas. Price is often conceded while other benefits are removed if you are obnoxious in your price pursuit. Sometimes those are invaluable and not a part of the contract. You'll never know.


It is important to remember that money isn't everything. Sometimes even more money won't sway the other side. Be sensitive to the outside forces when negotiating your transaction. When it comes to choosing professionals to assist you with your real estate needs... Experience is Priceless!
Lisa Wetzel and Jim Valentine are real estate agents with RE/MAX Realty Affiliates in Gardnerville. They are short sale and foreclosure specialists and certified distressed property experts.



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Forces Beyond The Price   




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Lisa Wetzel & Jim Valentine
 RE/MAX Realty Affiliates
1320 US Highway 395 N.
Gardnerville, Nevada 89410
775.781.5472 - Cell
775.783.6854 - Direct
775.552.8585 - Fax
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Comment balloon 0 commentsLisa Wetzel • April 08 2013 07:57AM