Dynamic Marketing Negotiating
Here we are in a competitive rising market. What are the signs? Multiple offers in multiple situations. Offers coming in with emotional tug cover letters. Offers accompanied by a Competitive Market Analysis to justify an offer less than the asking price. Offers higher than asking price. Buyers wishing it wasn't so, but in most market sectors these days there is substantial competition. Homes are selling in days, not weeks.
Somebody will buy the home you want and it might as well be you. There are ways to compete in this market. It is important that you and your Agent are clear in your desire and ability to buy the property you want. When you are clear in your vision and the right property comes along you will both know it. When that happens it is important that you be serious about the business of buying your home, not engaging in the gamesmanship of exploratory negotiation.
It is tempting to make a low offer to test the Seller. That can work well to your benefit in the right circumstance. If the Seller is sufficiently motivated by their own circumstances, or those of the market, you might get lucky with your timing. Today, the window for such a lucky move is small before you get competition. If you are first in on a good deal and you really want it you can try to steal it, or you can try to make the best deal you can and buy the property. In the case of the latter situation, instead of making a low offer to see how far you can pull them down, make an offer good enough to "put them on the fence".
When you put the other party on the proverbial "fence" they are forced to make a choice. If they sign it they have a deal. If they counter they stand a chance of losing you. When you make extreme offers you are merely inviting a counter offer. If too extreme your offer will likely result in a full price counter indicating a willingness to work with you, but not playing the game of extremes. In such cases you lose time creating more opportunity for competition, but through no fault of the Seller. Did you really expect to buy it at that price? If so, why did you look at it in the first place? If you are truly limited as to what you can pay and were hoping against hope that you might get it, we understand. Sometimes that works, but if you were only posturing to achieve a result and lose out on what you really want then it's on you.
If your offer isn't accepted don't be mad at the Listing Agent as it is up to the Seller to accept the offer. Your offer not prevailing doesn't mean the Listing agent is a dirty rotten scoundrel. They work for the Seller. They are duty bound to get the best for their client. They may have been forced to comply with corporate guidelines if representing an institutional Seller. By law they must tell the Seller if they know of another offer coming in. If a better offer comes in they must present it even if the Seller is already contemplating your offer. If they make a verbal counter and you verbally accept it but nothing is in writing you have great exposure to being outbid until you have it in writing. The Listing Agent doing his job correctly is no reason to vilify him.
Our Advice: Know the market and be realistic in your expectations. If you are caught playing price games you've only yourself to blame if you lose the property you really want. Was it you or your Agent? You are in charge of your life and you are the one that is living in and paying for the property that you want. Super clean reasonable offers are being accepted. What does yours look like? There is no reason for the Seller to take $30,000 less than market price so you can please your children. Sellers do make concessions if approached right. Fair price, win/win terms, no hooks or gotchas in the contract - a square deal will get you your home.
If your gamesmanship cost you the ideal home take solace in the fact that your offer probably softened up the Seller for the successful Buyer.
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