Changing Market Requires Evolving Owner Strategies

January 5, 2007

Lear How To Negotiate To Get The Price You Want.

Since it’s benn a buyer’s market that means it is a crucial time for sellers to dust-off those concessions and hone-in on negotiating skills.  Here are a few strategies that can help the owners get the price they want.  Whatever concession you make, put them in writing.

*Negotiate the terms.  Offer to move out sooner i.e. 30 days instead of 45 days.  Close Escrow earlier and give the buyer the home sooner.  The terms are just as important as the price.

*Negotiate with cash.  An effective financial inducement, especially for buyers short on down payment money is to offer to pay a portion or all of his or her nonrecurring closing costs.  Such costs can amount to 3-5 percent of a buyer’s total purchase price and include loan origination fees, title insurance, property inspection and the like.  Be aware that some loan programs limit the amount a seller can contribute to the buyer.  If you’d rather not go into your pocket for the buyer suggest the buyer check with the mortgage lender to cut or eliminate the loan origination fee in exchange for a slightly higher interest rate.  Another consideration is to ffer the buyer more money for the down payment in the form of a seller financed “carry back” loan - which becomes a second mortgage on the property.  A seller who does take back a mortgage has the right to foreclose and take back the property if the buyer should default on the loan.

*Negotiate with items.  Consider paying for repairs foudn in the inspection report.  Leave the major appliances with the home as well as window coverings and other possible items such as patio furniture.

*Negotiate with an expert.  Now is not the time to consider going FSBO (For Sale By Owner).  Hire a professional real estate agent with sharp negotiating skills.  They won’t have the emotional ties you have to your own home.  They also won’t take things personally as you might.  They aren’t the ones who spent months looking for just the right wall paper or paint for the master bedroom.  A good negotiator is worth every single penny you would pay to their real estate brokerage firm.  Objectivity is easier - they’ve done this for others and can sucessfully do the same great negotiating on your behalf.

Posted in All Things San Diego