Smart Negotiating to Win
In real estate there are 3 types of negotiations and the market index (in the Market Report) will suggest which one to pursue.
- With a market index of 5 or greater, buyers will have plenty of time to negotiate before competing buyers appear. That is when they can do their best on pricing.
- When the market index is 3 or less, buyers will need to be worried about competing buyers and will need to proceed without delay in order to win the home of their choice. They should be prepared to pay higher than the asking price if competing buyers appear. Their alternative is to start their search anew or live in their second-choice home forever. Another alternative is to wait several years for a buyers' market.
- With a market index between 3 and 5, good judgment must be used in view of your segment of the market.
Negotiation of other terms such as closing date and contingencies will also need to be adjusted for the current market.
The above is written from the perspective of buyers. Knowing how to negotiate can be of critical importance to them. Of course, sellers need to know the state of the market to produce their best result.
Those who rely on local real estate news are likely to be at least two months behind. If you rely on national news, you've just not been paying attention.
Hot Tip: There is an agent available who has over 30 years of experience negotiating in all types of real estate markets. He has also negotiated wage labor rates and multimillion-dollar contracts for large corporations. Further, he is a graduate of the Karrass negotiating course which you have seen advertised in airline magazines.
Tell your friends!
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Arlington, Virginia, USA
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