This morning I received a call from an agent wanting to show one of my properties; her client had viewed the property a couple of months ago and she had called once the interim. As we're in the home, she was asking if we had had any activity on the townhouse (yes, I said - we had a contract about to be signed before the buyer decided her 840-square foot townhouse needed a formal dining area.) And then she started analyzing prices of other units in the complex for me.

While I appreciated the update, it wasn't anything I didn't know.

On another property, an agent at my office took one look at the price and told me my sellers had priced their four-plex "at the top of the market." Not really, I answered. You should see where the real top of the market is. Of course, I realized immediately that I was answering a rhetorical statement.

More and more, buyers' agents are beginning negotiations before writing an offer or, in some cases, even viewing the property. Or at least they're trying to begin negotiations. I refuse to get suckered into having the conversation. Maybe they expect me to break into tears, screaming "You caught me! We priced this home way, way too high! Have mercy, please, and guide us with your wisdom to a better price."

My standard answer is for the agent to "write up what they think is fair" and I'll present it to my sellers. But the answer I may start using is the one I used on the agent in my own office ...

"You know what the beautiful thing about the residential contract is, (insert agent's name here)? It has this blank right next to the words 'Full Purchase Price' on the front page. It's not already filled in for you, much as I sometimes wish it were.

"All you have to do is write in whatever number you feel's appropriate, fill out the rest of the offer and I'll show it to my seller. I'm not saying my seller's going to like the number you write in there, but I promise if you fill in that blank, we'll take a look and see if we can't put something together."

I love negotiating. My ability to negotiate is part of the value I add for the commission I receive should I be able to put a deal together. Oddly enough, though, I've yet to have a transaction consummate after starting with "gee, that price looks awful high ..."

Negotiate ... don't posture ... and we'll all get more business done.

 

1 Comments on Fill In The $_________

OCT
16
2006
612,113 Points 244 Featured Posts Localism Sponsor Outside Blog
Amen Jonathan. write it up and let's run it by the seller. After all it is their house. Never quite understood why Realtors try to negotiate with me. Heck I don't even know what my sellers will take. I knew what they wanted yesterday but today is a new day. Things change. 
6:47pm • #1

Leave a response…



(optional)
What does the graphic say?
 
Rainmaker_large

Jonathan Dalton

Glendale, AZ

More about me…

RE/MAX Desert Showcase

Office Phone: (602) 502-9693

Cell Phone: (602) 502-9693

Email Me

Phoenix Arizona Real Estate Blog, presented by Jonathan Dalton of RE/MAX Desert Showcase and Dalton's Arizona Homes. Check back often for market analysis and general thoughts on the state of real estate in Maricopa County. Free listings search with no registration!


Links

Archives

RSS 2.0 Feed for this blog

Find AZ real estate agents and Glendale real estate on ActiveRain.