Negotiating in a buyer’s housing market

WHETHER YOU are a buyer or a seller in today’s market, chances are you will probably be asking the same questions: Has the market hit bottom? Do you think something better will come along? Are you being represented well?

These days, in a frustrating economy, the natural tensions that exist between buyer and seller are easily aggravated. However, I have found that labels and attitudes never work to put a deal together. Just like setting a beautiful table for a Shabbat dinner, you need to set the stage well for proper negotiations.

There is always a lot of ego involved in a home sale. We often seem to tie our personal value to the value of our houses. The truth is, one has nothing to do with the other.

When an offer comes in on your home and it is low, no matter what you are thinking or feeling when you hear that number come out of your agent’s mouth, take a deep breath.

Instead of asking your agent to relay a flat rejection, consider rethinking your strategy.

Keep the negotiation alive; thank them very much for their interest in your house. Let them know that it is too low – but counter with something that indicates that you are interested in working with them.

If the house is new on the market, you can always say it hasn’t been tested for a long enough time to lower the price substantially.

If it has just been reduced, let them know that you have just taken the fluff out of the price and the reduced price is bringing in much more activity.

Remember, the last negotiation of your first offer is almost always your best offer. This has been proven to be true in any market condition.

In this market, you will be both a wise and successful seller if you view each offer as an opportunity. Even if you are thousands of dollars apart, you are still closer to a deal than not having an offer at all.

Your motivation may change from day to day. Perhaps you are getting divorced, or you have found a home that you are dying to purchase, or you just found out you are being transferred out of state.

Each of these scenarios indicates different amounts of motivation. Given the fact that the buyer wants to buy and the seller wants to sell, then fair market value of your home is determined by what the market will bear.

If you are selling in a down market, you are buying in a down market. If you are selling in a hot market, then you are buying in a hot market. The differential will be the same.

Today, from a buyer’s perspective, there is a lot of inventory on the market. It can take weeks to see all the houses in a price range. More than 80 percent of buyers begin their shopping for a home on the Internet. Buyers are better educated than ever before.

If you are on the selling side, make sure that you are as educated as the buyer coming into your home. Spend time online and learn about your competition.

Ask your agent for as much information as is available, so that when the offer comes in, you will be prepared to work in a partnership with your agent and the buyer to fulfill each of your goals and dreams.

Sally Lapides can be reached at slapides@residentialproperties.com