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WHY RAISE THE CEILING IN A NEGOTIATION?

When assisting "potential clients" or "clients" do you qualify "CEILING PRICE"? If they tell you their top dollar is $400,000 Shouldn't you GO ONE STEP FURTHER FOR THE GOOD OF THE CLIENT? NegotiatingDrugPrices.jpg picture by dabydoll

What is that one step???

Think about it.

LIFE IS A NEGOTIATION ANY DIRECTION WE TURN.

Not just with our clients but in everyday structure.

PERIOD. IT JUST IS.

In this day of the current economy...we MUST KNOW THERE IS ROOM FOR NEGOTIATION!!!

If they qualify for $400,000 then why not try $401,000 to $425,000?

One of our main purposes of being a Realtor is to handle the NEGOTIATIONS for a successful home sale.

A DILIGENT REALTOR WILL TRY FOR THAT EXTRA FEW DOLLARS FOR THE CLIENT'S SAKE AND FOR THE SELLER'S SAKE.

(and no, not for the Realtor's sake)

Sellers are convinced by their Realtors to begin their "ASKING PRICE" a bit higher than what they would truly be happy with. This is human nature and normal in the business. The SELLING AGENT always assumes that there will be a negotiation with the proposed sale. And of course, so does the Buyer's Agent.

So, if your client says, "my top dollar is $400,000, ( Your client's CEILING)," are you doing a good job by not showing them properties that are priced at $425,000????? upanddownarrow.gif image by dabydoll

Possibly not.

We as professional Realtors and Negotiators should go for it for the sake of the client!!!

I have learned to go to my local MLS for the stats to help me with the future negotiations for a client. We can isolate neighborhoods and the recent sales with those neighborhoods to see what percentage off the asking price is the current average.

EXAMPLE: Your client tells you they are qualified for $400,000. and they do not want to go over this price.

******* You are aware that there is a property they would love that lists for $425,000.00.

******* After researching the area you find there is an 8% average between asking price and sales price.

******* In this case the 8% negotiated off the price brings the sales price back down to $393,000.00. shaking_hands.jpg picture by dabydoll

DA BING DA BANG.....YOU GOT THEM MORE HOUSE FOR THEIR CEILING PRICE!!!

Often times if you present the MLS Data along with your offer it will help the Selling Agent explain to their Sellers why they should consider taking the offer. Including back-up Data with your offers is actually "assisting" the selling agent with their presentation.

Of course warn your client that nothing is written in stone but for heaven's sake give it a try if this is the property they prefer!

Good luck to you!

Later in the rain~Deb

Brooks Prime Properties

Specializing in Lake Properties

Lake Livingston Texas

936-295-0005

Posted by Deb Brooks, Lake Livingston Real Estate on 10/16/2009 06:10 PM

Comments (11)

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Originally posted at: Deb's Lake Livingston Real Estate & Stuff! : WHY RAISE THE CEILING IN A NEGOTIATION?

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11 Comments on WHY RAISE THE CEILING IN A NEGOTIATION?

OCT

Hi Deb, Now this is a post that I suggest everyone read through to the end. I was beginning to get a tiny bit counter defensive until I got to the end. That is the really cool thing about writing, it is the writer that controls where the story goes. You did a great job of delivering on your point. I am flagging this for feature statusl

William, what a nice complement! Thank you. I really do believe that some agents hear that top price and simply stop there. It's a shame for both the buyer and seller in a case like this.

From you this is high praise!

Thank you,

Deb

Deb, if a buyer gives me their magic number, I'll respect the limit, unless it's been on the market for a long time and is clearly overpriced. If there is reason to believe the sellers will come down to their limit, I might put it on my show list.

Deb,

You did a great job of holding my attention in your story. You are absolutely right about the negotiating technique you use. In this market it makes perfect sense to widen the parameter of your buyer's ceiling price. Thanks.

Patricia, then you are doing it just right! Always respect their limit but if the seller could come down go after the best for your buyer! Thanks, Deb

Thanks Mercedes, It works for me and most of my clients. They appreciate my trying even if it doesn't happen. Most of the time we are successful though. Go with the odds! Thanks again, Deb

I always search over their ceililng price - over here most things are still overpriced and end up selling (if they sell at all) for less than asking price.

Good job Georgina. Never leave any stone unturned for your clients. They will appreciate it and YOU in the end!

Deb

OCT

Beautiful.........there's bang for the buck when they have this info...great summation of WHY

I go a "little higher" but not much, it depends on the neighborhood.

I look at the sales, the actives and then make a decision.

In our market we are negotiating about 10% down from asking price but I know that doesn't apply to all area's of the country.

Thanks Sally! I have no doubt that you knew this already!

Missy, 10% is amazing! We go that much under here once in a while but not often. I always qualify with my client that we are looking and attempting to get the price down and with their permission I then show the house. Once educated the buyers usually opt to at least see the property if they like it. It never hurts to try!

lol....Deb

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