Glenn Roberts | Ravenna Park | My Seattle | Lake & Co Real Estate

How Do You Negotiate?

I got an email from a buyer a while back. I had met him at an open house I was holding. It wasn't my listing and he acted like he knew more about the listing than I did. Maybe so. There is a lot of information out there. I asked if he wanted to look at some comparable properties. He said maybe.

I got an email from him a few days later. "How would you negotiate for me?" he asked. I could tell from talking to him at the open that he had read about the bubble and then the shadow inventory, and he was sure prices were going down more. He told me about how much less than asking other homes were selling for. So I pretty much guess that more than anything, he wanted the deal of the century.

I wrote back: There are two ways to negotiate. you can negotiate from a position or you can negotiate from merit. If you want to negotiate from a position you are essentially saying that you won't go over $xxx,xxx for that house. Your reasoning might be comps or condition. But you take a stand and see if the seller rolls over. That would tell me that you don't really care about the house, you only care about getting a deal. On the other hand, if the house has merit, if it meets your needs, if you can afford it, if there isn't any other property that meets your needs as well, for the same price, then it's worth trying to find a way to make the purchase work so that the seller's needs are met as well.

He wrote back: No, I want to know how you will make the seller sell at a lower price.

I knew the seller had received an offer at a lower price and it didn't work out. It might now and I would help the buyer with it, but it had to make sense.

I wrote back: It sounds to me like you are trying to defeat the seller. That is one style of negotiating. It will work if the seller and his agent are both accommodaters. They may just roll over, and give you the house for what ever you want. But they didn't to the last person. If both the seller and you were compromisers, we might reach agreement, but you would have to give up some of your desired features. I really don't know what they are other than a lower price than the home is currently listed for. On the other hand, with an offer too low, as you suggested you might make, the seller might just withdraw. We would go no where with this if the other party will no longer speak to us. I suggest we try to collaborate with the listing agent and the seller. We'll need to negotiate more after the inspection and possibly after the appraisal.  Some how we can tweak their needs with ours, once I know what yours are. I need to know why you want this house so I can build a case for you. Or maybe, there is a better house somewhere else that will work as well.

Apparently this buyer, a buyer who wouldn't sign a buyer's agency agreement, a buyer who didn't seem to have needs other than to get a house for way less than the listing price, a buyer who is perhaps, not a buyer at all, didn't like my idea that we try to work with a plan that would accomplish the goal of closing a sale. He seemed to want a negotiator who would help him make it fail. I didn't hear from him again, nor did I pursue him as a client. I don't think he really wanted to be a homeowner. I think he only wanted a deal.

Glenn Roberts
Lake and Company Real Estate
206-524-3665
Seattle Residential ~ I Do That 

Licensed broker since 1985 offering spectacular service to buyers and sellers in greater Seattle, with particular interest in Green Lake, Ballard, Phinney Ridge, Wallingford, Ravenna, Bryant, View Ridge, Roosevelt and the University District.

Referrals from past clients and other agents always make me smile.  

Glenn Roberts | Lake and Co Real estate on Facebook

When Selling your home....SWEAT the Small Stuff!

 

Everyone has heard, "Don't sweat the small stuff"...but when selling your home, The Small stuff can make a BIG difference.  Many Buyers can overlook the small stuff, but many can't and won't!  By Small Stuff, I am referring to things like burnt out lightbulbs, loose doorknobs, closet doors that are off the hinges, small tears in the screen on the back porch.  There are also quick & easy "Housekeeping" items that can make the home feel Tidy & Clean & well maintained. 

 

Here's one example....My husband is the world's worst Dresser Drawer Closer....There are always corners of T-shirts or socks poking out, and they are never completely closed.  It drives me absolutely bonkers, but most of the time...I close my eyes and run by.  If I were trying to sell my house, I would make sure they were properly & neatly closed everyday (or nag him constantly to do it).  I know, the buyer is not getting that dresser (or maybe they are) ...but it just looks better!  Is your cute little trash can in the bathroom over flowing....Empty it!  Replace the empty toilet paper tube, remove the stickers off your child's bedroom door and repaint if necessary.  Maybe the refrigerator needs to be cleaned or the dog hair removed from the baseboards? By all means, do not leave your underwear or dirty socks on the floor...And yes, I have seen that when showing property!   The Cleaner, The Better when selling your home!  And yes, that means the outside too!

 

The market seems to be picking up quite  a bit here on the Crystal Coast of North Carolina, but there are still LOTS & LOTS of properties on the market, make yours stand out!  For more tips and suggestions, give me a call or visit our website for Interior Tips or Exterior Tips.

 

 

             

 

Amy Hahn , Crystal Coast Real Estate - Amy's Crystal Coast Blog

When people hear that my first Activerain listing came from my first Activerain post and a second listing followed a few weeks later, they're usually either surprised or skeptical or both.  Then, when I say the post was a Market Report and other Activerain listings have come from similar posts, their faces curl up kinda funny and they look at me with utter disbelief.

To them I say, "Serious home sellers and buyers are looking for information on the local real estate market... Maybe it's time to tweak your Market Reports a bit so they generate business for you, too."

 

As a new Activerain member, instinctively feeling that I should somehow showcase my real estate expertise in my own community, a commentary on the market seemed perfectly natural.  When I looked up the market stats published by my mls, however, they intimidated even me. Then a little voice in the back of my mind said those words I heard so often from my daughter when she was growing up...

 

Answering that question has been the focus of my market reports ever since that very first one on March 13, 2007. 

I've tweaked the format many times since then, of course, adding charts and graphs a la Brian Block who taught me about the chart wizard on MS Excel. I created my own "standard format" after admiring the consistency of Bill Gassett's market studies, with his signature chalkboard and list of previous market reports in each post. I got real excited when my mls system partnered with RBIntel to provide a lot of interactive graphs for my market area. But I don't think the format of your market report really matters IF your market study is interesting to readers... and IF it answers the question, "So What?"

 

My suggestions for creating a market study that will attract live
commission-paying home buyers and sellers:

1. Stop posting market studies that are boring or rambling.  If no one reads them, those market studies are a waste of your valuable time.
   
   
2. Organize your data by using bullet points or charts or graphs.  Consider adding a little color or using a different font.
   
   
3. Give your numbers some relevance by comparing this year with last year, or this month with last month or this zipcode with that zipcode; Calculate the percentage by which it differs and use that percentage in your commentary OR bullet points/charts/graphs - but not both.  (I prefer to use it in my narrative analysis because it adds to the data in the chart.)
   
   
4. Answer the question, "So what?" by providing your own commentary.  It doesn't have to be complicated, but it should be conversational in tone.  For example: "Sales in My Town were up last month compared to the same month last year, offering some encouragement to home sellers and making home buyers a little nervous." 
   
   
5. Begin your commentary with something that can be interpreted as good news.  If the Year on Year comparison is ALL bad, do a Month on Month review... or compare Your Town's bad news to worse news in the adjacent zipcode or the state or the country.  Or switch your focus from bad news for home sellers to good news for home buyers.  Just figure out a way to begin your market report narrative with a positive statement!

 

You probably won't get a lot of comments on your market studies, but don't be surprised to get a call from prospective buyers or sellers. I can track almost $4 million dollars in listings directly to market reports.  I was just as surprised to receive one of those calls the fifth time as I was the first.  It felt really really good, and I'm hoping for a few more in 2011.

 

P.S.  Would you like to see how other people do their market reports?  Visit the Activerain Market Reports Group and join it today.

Copyright 2010.  All rights reserved.

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MARGARET WODA
REALTOR® and Associate Broker
Long & Foster Real Estate, Inc.

Office:  (410) 721-1500 x 6245
Direct:  (301) 346-2923
Email Margaret Woda

'Still passionate about helping home buyers and sellers in Bowie, Crofton, Davidsonville, Gambrills, Fort Meade and Odenton, Maryland, after 30 years as a REALTOR®.

Disclaimer: Information contained in this post is deemed reliable on the date of publication, but it is not guaranteed and it is subject to change without notice.

In this morning's NY Times there's an article about how the Bank of America was finally "shamed" into making a home loan modification after a particular case received some publicity (an article about the same woman a month prior) and her house being foreclosed upon.

This is an all too familiar story.  A person falls on a hardship and would seem to qualify for a home loan modification, only to get the run-around and have their house go into foreclosure before they know it.  The story of this retired person on a fixed income goes something like this:  She lost her upstairs renter and without the rental income, could not afford her mortgage.  Once she fell behind in payments, she couldn't catch up.  She applied for a loan modification over the course of three months with Bank of America and kept getting the run-around, with them saying her modification was in the works. Three times she'd gotten a short-term  forbearance agreement.  Still, in the forth month her home was foreclosed upon and was handed over to Frannie-Mae who was in the process of trying to evict her.

She was fortunate to have had the help of a young attorney couple to help guide her through the dealings of a brutal foreclosure law mill and Bank of America, where, upon investigation, may not have even filed the foreclosure paperwork legally.

After the article was published in the New York Times, within days, Fannie Mae turned over the house to Bank of America, who only then did their due diligence and investigated whether this woman was qualified for a loan modification.  Guess what?  She was.  Her principal and interest were lowered to a point where she could afford to live out her years in her home and not in a shelter as she had feared.

She still went to court and there were some $50,000 in fees that weren't able to be accounted for.  Some things, even after all of this, still were questionable.  But the bottom line is that she was able to stay in her home... but only after a NY Times article exposed the bank and Fannie Mae and what they were doing to this woman.  It's what's happening with so many people across the country.  The money is there to do the loan modifications and many meet the requirements of getting a loan modification, but not everyone is getting what they deserve.  They are being coerced to sign their legal rights away and being evicted from their homes where, had they had an attorney and the Times on their side, they'd likely, all of a sudden, qualify for a loan modification.

Kimberly A. Norgard

REALTOR®, HANFRA, LIBOR, ePro, CRS

Licensed Real Estate Agent 

Devlin McNiff Real Estate

East Hampton, NY  11937

(631) 834.9271

F irst - I am no longer a real estate sales person - but because I write for active professionals and write about real estate a lot, I do get questions from consumers as well as from real estate agents wondering how to build their businesses.

Today I got the following: The subject line said "About your article"

Thanks...helpful....one question not addressed....smaller private realtor with all the bells and whistles or Major National company??? Home I am selling is in 600K range...your non partial insight will be helpful!

The gentleman didn't give me much information to go on - not even a clue as to what article he had read. Since I have articles everywhere, who knows?

But this is how I answered him:

"I'm not sure what article you read - I have 500+ out there in the ozone. So, I can't expand on that at the moment.

However, I can talk about private vs major company. My office was small and private, and within 2 years of opening we controlled over 50% of the business in town, despite our landlord renting the office next door to a (national franchise) office. At one point we were one of 7 offices in our small town.

The difference at that time was in the people and the marketing.

It still is, but now the marketing has expanded to include a need for a superior Internet presence. It has also changed in that individual agents are expected to market their own listings.

Back when I was doing it, my job was to market us well and bring the customers in - then it was the agents' job to give them superior service.

The only advantage I can see to going with a national franchise is if you live in an area where relocation buyers make up a good part of the market, and that company has strong contacts with the corporations that are relocating employees.

And even within a company like that, the agent you choose within the office makes all the difference.

So talk to them, visit their websites, look at how they present their listings on line, and follow up on the testimonials they present. Anyone can say they're the top listing agent - but how about sales of those listings?

Some agents just gather listings and hope someone else in MLS will sell them.

Ask the agent to show you how he or she markets homes.

Look for an agent who actively promotes by writing ads and posting photos that make buyers want to come for a look. Look for an agent who will provide you with flyers that do the same. Choose an agent who will return phone calls and emails promptly. By the way, it is important that the agent returns calls to other agents, not just to you. It is very likely that a different agent will bring the buyer - but not if your agent makes it difficult.

Choose an agent who will give you a market analysis and suggested price for your home that makes sense. When you read the analysis, check to see that the homes used for comparison really are similar to yours in size, amenities, and location.

Some agents will tell you what they think you want to hear, just to get the listing. Since over priced homes don't' sell, they aren't doing you favors.

And, after you've checked their competency on all levels, choose someone whose personality fits well with your own. You're going to be dealing with this person a lot, and for both your sakes, it should be a comfortable relationship.

You can learn a lot about the agent you're considering by reading the blogs they post on their site and on Active Rain.

Google their names, then choose the URLs that include Active Rain and you'll learn a lot about how they think. Hopefully, some of those posts will be about their listings - that's a good sign that they're actively promoting."

So... How'd I do. Did I give the right advice? What do you think?

 

marte@copybymarte.com

Call on Copy by Marte for:

Custom Web Copy....Agent Bios....E-mail Campaigns
Newsletters....Postcards....Custom Prospecting Letters
Articles....Blog Posts....Print Ads

PLUS

Pre-written real estate letters that save you time and money -
and keep you in touch with your prospects.

 

The Top 10 Mistakes Made in the Home Buying Process - And it's Not Always the Buyers Making the Mistake.

This post was inspired by Bob Stewart. 

We all have made mistakes in the way we first go about fulfilling the desire for owning our own home. ( notice  I didn't say the Dream of Home Ownership - taking care of what you purchased is not exactly my definition of a dream). I have read so many lists on this subject, I thought I would formulate my own that are a bit more reality based and not the typical response to the question. Especially in who may be making the mistake.

1. The first mistake in my view is confusing price with value. Price is a term we mostly understand. It is what it costs. Sometimes it is even negotiable. Value is a whole other issue that needs to be explored. The right home in the right location, at the right price that can be maintained and even improved is probably a good value. An example. A young newly married couple. It's a first time ownership question. Should I buy a home that is large enough to account for a future family or buy something more modest that suits the needs in the shorter term. That should be answered individually. There should not be a stock answer to this question, the answer is different for every buyer. Their needs, their plans and their reality. Value is better defined as getting the right property that satisfies the right needs at the right time. The right floor plan in the right neighborhood in the right condition is a good start. 

2. Way too much time spent looking for real estate before the professional REALTOR® is selected that will help the Buyer through the journey of financing and exposing the right property for the needs. To my way of thinking, a home out of context to the neighborhood it is in is just a house on a street. I think it is far more useful to engage a professional from day one when the decision is made to buy a home. A good REALTOR will save so much time in understanding the nuances of the housing market and where the best choices are located for the needs and wants that are the Buyer's priorities including price vrs value.

3. 1st time and even second time Buyers often use the word fixer when what they mean to say is that "we can do the re-painting" and maybe change some of the flooring". If a Buyer says they would buy a fixer, their agent needs to ask what they mean by " Fixer" and not assume that the Buyer can handle more than a bit of easy cosmetic fixing up or decorating. I think agents who tell the Buyers that "oh that is easily fixed or this would be easy to change" is full of hot air and don't either own their home or don't take care of it anyway. How easy it is fix or repair depends on the ability of the person to actually understand the issue or at least how to do it or can afford to hire someone who does know how. Way to often these assumptions are not based in the Buyer's reality but simply pacified by the person that wants the buyer to get on with it. 

4.  If a real estate professional is not willing to spend the time teaching a new buyer the ins and outs of buying as well as understanding the true cost of ownership and where they learned their current opinions and help reshape them correctly if wrong, is not building a long term client. It is necessary to spend as much time as we need to counsel the buyer in the ways of the market and how to navigate through the learning process that is unfolding before their eyes. I think of it as the "BOM" of Real Estate. Buying, Owning and Maintaining. My Buyers, when they become Sellers do very well in the resale market because they were prepared for it from day one. Odd as it may sound, my past buyers are my best Sellers. And Vice Versa. 

5. The amount of home a Buyer can qualify for is most often not related to what the Buyer can actually afford. Lenders make loans and we have seen the consequences of Buyers being facilitated to purchasing homes they may be able to buy but can't easily afford to own or maintain. Taking buyers to the threshold of maximum price they can qualify for can lead to some serious consequences down the road. And that is not always related to missing or making late payments. It often revolves around the true cost of ownership and maintenance and not just the payment on the mortgage. A home not properly and constantly maintained and improved is a home losing value while the costs associated for the paying of it, keep increasing. That often leads to a losing proposition.

Perhaps Mistakes 6 through 10 should be not clearly understanding and mastering 1 through 5.

 

If you are Buying, Selling or Relocating to San Diego and  need help from a professional REALTOR®, give me a call or visit my San Diego Real Estate website and 
sign up for Listing alerts for your favorite San Diego
Home and Condominium Property Searches.

I specialize in Single Family Homes and Condominiums 
throughout the coast and inland areas of San Diego.

William Johnson, Certified Residential Specialist 

 
Need Help and Guidelines for Buying or Selling a Home ? Search for Homes and Condominiums in San Diego County. " Voice of San Diego Real Estate Blog "

 

                                                            

 

There is something huge that definitely separates committed sellers from interested sellers. You see, there are some that are just interested in seeing if they can sell their house for the price they want and do it all on their terms, and others that are completely committed. What am I talking about exactly?  

While there's nothing wrong with putting the feelers out for a potential buyer and setting the price higher than the agent recommends, it can make the selling process so much harder than it needs to be.   Sellers that are interested in selling will do what's convenient. They will make necessary repairs and neutralize paint/carpet if they feel like it, leave the house during showings if its convenient for them, and stage it when there's time.  The house languishes on the market for months as savvy buyers wait for the inevitable price reductions.  And the agent's marketing efforts go right out the window because the seller was never really committed to do what it takes to sell in this market in the first place. 

Many people in the real estate industry believe that in order for the market to pick up that the lenders need to change or the government needs to step in with incentives, (including you, I'll bet)  As a stager who combines proven staging techniques and Feng Shui to every listing I work on, I know that the power lies within the seller.  A committed seller is one who is willing to do what it takes to sell the house.  Period.  Ironically, because they are this committed, they usually get the house sold within the first week. They also often get a full price offer or even above asking!

This is something I see constantly. When a committed seller spends money to get the house in selling condition, prices it right, and lets the agent do their marketing, almost every time they get the money back immediately.  When they price it where it needs to be, they often get buyers fighting over the house with multiple offers.  This also translates into more money.  If you are an agent spending lots of money in your listings and not getting any results, ask yourself if the seller is really committed to selling the house, or merely interested in a curious fashion.

It's so important to for sellers to make the decision to sell and have their actions support that decision.  I believe that is going to turn the market around faster than anything.  Decide that these are the kind of sellers that you want to work with.  Commit to it. When you make this transition in the way you think about the kind of sellers you want to work with, you will be committed to do whatever it takes to help your sellers be successful.  This includes having them stage it, price it correctly, and then do your marketing magic. Then watch you create your own market conditions.

Mary Beth
Feng Shui Staging Expert
Feng Shui + Staging=Sold!
310-658-0601

I really don't want a sign in my yard.  It's none of my neighbors business if I'm selling my house.

With all due respect, you are incorrect.  It is in your best interest to have as many people as possible know that your house is for sale.  No one can buy it, if they don't know it's available.  With over 160 homes currently for sale in Wrightsville Beach, NC, we need to take advantage of any form of advertising we can.

First, let's deal with the neighbor issue.  Your neighbor may be just the person to help sell your house.  Think about it:  Since they already like the neighborhood, they are more likely to suggest to friends or acquaintances there's a house for sale in their neighborhood.  You want, and need, all the "advertising" you can get.  Talk to your neighbors, let them know you are selling your house and give them one of the flyers I gave you.  Ask them if they know anyone looking to buy, and if perhaps they might like your house.  Most people would like to help choose their new neighbors! 

Many potential buyers aren't working with a REALTOR®, and begin their search by driving around neighborhoods they like, looking for real estate signs.  Sure, most people today begin their search for a new home online.  But, many are still taking a weekend drive through communities they like, taking note of the homes they see with real estate signs.  They even call the Listing Agent on the spot, to get more info.  Can you afford to miss that chance? 

Our goal is to sell your Wrightsville Beach, NC house in the shortest amount of time, on terms which make you happy. 

Along with a great marketing plan, having a sign in the yard will help us to do just that!

 

***********************************

   Copyright © 2010 - 2011 All Rights Reserved

Tish Lloyd, REALTOR®

Broker

NC Real Estate Lic. 269076

Prudential Laney Real Estate

527 Causeway Drive

Wrightsville Beach, NC  28480

910.547.1446

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