|
|
|
|
Making Real Price Offers...
February 2009
 It's
all about the Real price, not the Listing price.
The Real price in this market is somewhere in the
gulf between what a Buyer is willing to offer and what a
Seller would accept to move on with his or her life.
Owners are uncertain about the value of their
properties, and are reluctant to "lose" money by
dropping their Listing price - most are stubbornly
inclined to leave the Listing price alone in an attempt
to allow a buyer to establish the Real price starting
point for negotiations with the now standard "Low-Ball"
offer. So what constitutes a fair lowball offer today?
Well, that depends on the Seller's motivation.
Current market conditions make
an experienced Real Estate Broker absolutely critical to
a successful transaction, both for the Buyer and Seller.
Buyers should make certain to choose a Broker
that is well trained in negotiating. Market research can
disclose important information that can be utilized to
formulate a Right price offer that will initiate
negotiations at a level favorable to the Buyer without
irritating the Seller into stiffening his position
before negotiations even begin. We can formulate a
successful opening offer by utilizing information such
as how much the Seller paid for the property and when;
what's the current debt secured by the property; are the
taxes current; is the property in foreclosure; any
comparable sales data, etc. Talk is cheap - we can find
out if sellers are going to be realistic about
negotiating only with formal written offers. Put real
offers on the table, and you get to the true motivation
of the seller. As a Buyer, you should find the right
Broker, utilize the information he or she gives you,
name your price and see if the part of Northwest Montana
you fell in love with can be yours!
For Sellers, market information
is just as critical. If you are selling your
townhome and the neighboring identical unit has been
foreclosed on and is being sold by a bank at 20% less
than your Listing price - your property is not going to
sell without a serious price concession. You can't
ignore comparable sales or the competition (ALL other
properties available at your price point - not just
other townhomes with comparable sq ft, etc.) - the
appraisers certainly won't. Be honest with your Broker
in discussing your plans, your hopes - your needs, wants
and wishes. A Successful Negotiation has been described
as obtaining All of what you Need, Most of what you
Want, and Some of what you Hope for... That's a tall
order in this market, but it's not impossible if you
work with a quality Broker who knows what you expect and
need.
If you are interested in Buying or Selling please give
me a call today! Thanks.
|
|
Northwest Montana Real Estate
love montana. live montana.TM
