Here’s the setting…I am opening one of my listings for a buyer and their agent. They are touring the property and listening to me point out the attributes, improvements and upgrades. Buyer is nodding in approval and keeping a poker face. At some point, the buyer turns to me and asks, “Is the seller negotiable?”
Lately, that question is posed more often than not. And I find it such a curious question. My response is “My job here today is to show you the attributes and features of the home and answer any questions regarding the property. If you are seriously interested in purchasing the home, have your agent prepare an offer with full ingredients and I will present it to my homeowner.” My experience is that buyers don’t like that answer…and most of the buyers who ask the question, never make an offer!
Let’s take a look at the situation…the seller controls the pricing and the condition/showing performance of the home and the market controls the value. Buyers are shopping and comparing homes features, location, and other variables. Most are savvy and have looked up the tax assessment value, used valuation sites like Zillow for info and reviewed comps of recent sales from public websites like mlsli.com. They know their stuff.
The seller has also been versed by the listing agent in comparable sales in the area. The seller wants to sell the property at the highest price and the buyer wants to buy the property at the lowest possible price. The bank wants a reasonable value to determine if they are willing to lend. The seller is listening….make an offer!
The seller is looking for an offer to contain a price and just as importantly terms. How much money is the buyer putting down and financing? Is the offer cash? Does the buyer want to close quickly or slowly? All these factors are reviewed. A seller’s willingness to negotiate is based on how weak or how strong all the components of the offer are.
In our market, an offer is not binding on either party. Both parties must sign a sales contract for an offer to be binding….so make an offer! If the homeowner finds your offer is made in good faith with strong terms, chances are you will receive a counter offer.
Negotiations are about establishing value and reasonable compromise. They start the moment the property is placed on the market. Think about this, the listing price is an offer to the entire buyer pool in that price range! As the buyer, are YOU ready to negotiate? The minute you come see the property and see it fits your needs and you like it, the ball is in your court. So if you like the property, go ahead and make an offer!
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