Negotiate my Home Purchase
Negotiate my home purchase…
by Michelle Shelton
How to find the best REALTOR®
My daughter is 25 and she had a friend looking for a house. She said she wanted me to help her and she was approved up to $140,000. I called the next day and left a message and I got a message back from her saying her mom knew a real estate agent that she was going to use.
I went into my favorite restaurant where this gal works a couple of weeks later and she was so excited as they had placed an offer on a house. "Did you get it?" I asked.
"We don't know yet." She said.
My gut was churning at this point. "Did your agent negotiate it before writing the offer?" I probed.
"Ummm. No, I don't think so. She just called me and said they will not pay the 3% closing costs we asked for on the contract. They will only pay 2%. I don't know if we are going to get it. I REALLY WANT THIS HOUSE!" She said.
Inside..my gut was churning. I knew that if I was their agent, I would have negotiated everything verbally and ironed all the details out before I ever put the pen to paper. The benefit is number one we have negotiation power as they WANT an offer to come to their client. Number two is the fact that my client doesn't waste time on a home with an owner that will not negotiate. The added stress this gal had now went wait up…she was losing sleep over this home. The seller was truly in charge and it looked like the deal could be dead in the water.
What would I do differently?
In Arizona, ALL real estate offers must be presented to sellers. Period. It doesn't matter if they are verbal or written, the listing agent as an obligation to present the offer. In negotiations it doesn't have to be a win / lose scenario. A verbal conversation will give valuable information about what the seller wants and it comes from a place of respect. Example: We want to make sure we are respectful of your seller and want to know when they would like to close….do they have a place to live? Is a quick close better for them or do they need more time? I have looked at the comps and it seems you have the home priced correctly, my buyers are a young couple with a new baby and they have not bought a home before. They are qualified and super excited to buy your seller's home, they are just a little cash poor. They have enough for some of their closing costs and their down payment, however, they do need a bit of help. Will your seller be willing to contribute 3% of the sales price with a full price offer?
At this point, you can give the seller some of the things they want in exchange for what your client wants. I have been doing this for years and it makes for a smooth transaction.
Are there homes sold the other way? Yes. I can say I have never lost a deal over negotiations. My clients don't have to wait days to find out if they are getting the home. I do it all with them sitting right there in front of me. The stress levels go down for all parties. It seems like a no-brainer to me.
Once the offer is written up (by the way it is not called a contract until everyone signs…even though many real estate agents call it a contract), and sent over…it is really difficult to come back and ask for more. If I were going to do it this way…I would ask for everything…the only limit would be the sky…then counter back and forth. I don't see the need for counter offers. Just my way….hope this helps you see how we work that is different from other agents.