This is another reblog on a similar topic....Buyers need to understand that if they like the property, chances are someone else likes it too.  Yes, there are deals to be had in NY...But the "deal" is already baked into the cake.  You've got prices that are down 20-30% and mortgage rates to die for!  Looking for 40% or 50% isn't going to work.  If you get the seller mad, they will just go elsewhere.  Prime properties in prime locations and in prime condition sell for market value.   The same holds for short sales.  Do you seriously think you can take on a big bank and get them to sell to you at 10% below market.  Not happening. 

Bottom line, know what the values are make realistic offers.  Crazy low offers won't work unless the home you are bidding on is a fixer-upper with TON of deferred maintenance.  Meanwhile, someone else will come along and buy it right out from under you. 

 

Via Loreena Yeo, Realtor®| Frisco TX Community Ambassador (214)783-2210 (3:16 team REALTY ~ Locally-owned Frisco TX Real Estate Co.):

For the sake of Negotiating..... Lessons of Feet Dragging - yes, even in a Buyer's Market.


So, I've experienced the Lessons of Feet Dragging, Negotiating and Dragging just for the sake of Negotiating. It is not fun to witness buyers wanting to haggle just for the sake of haggling.

In the end, when the counter offer is not accepted and a new offer is introduced into the picture, it would be very disappointing when you lose the house, the house you've been talking about and the house you've been spending your time visualizing in.

So many times I wonder why buyers cant be serious? What could $2,000 mean in a $200K transaction or better yet, $2000 in a $500K transaction? Is it worth haggling?

ABSOLUTELY NOT! After evaluating the pros and cons of going back to the sellers for a tiny pricehaggle, in the grand scheme of things, it will not make a small pinch in the monthly payment,

WHY OH WHY DO YOU RISK ANOTHER OFFER COMING INTO THE PICTURE?

Do you know until it's signed and executed, you - the buyer is still vulnerable and that you have not secured anything yet.

And agents, don't come back to tell me how your clients will now pay the price they originally agreed on. It may be too late. The seller may have signed and executed the other offer. The seller may be upset about the haggle, the seller wants to deal with the other non-haggling buyer.

I've personally experienced 2 back-to-back negotiations where buyers lost because of Negotiation for the sake of Haggling.

 

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Content & Photography Copyright © 2012 by Loreena Yeo (3:16 team REALTY)
For the Sake of Negotiating... Oh How Much Fun It Is to Ride

 

12 Comments on For the Sake of Negotiating... Oh How Much Fun It Is to Ride

FEB
05
2012
237,744 Points 9 Featured Posts Outside Blog Called Shot Master

Great re-blog.  I have just had these kinds of experiences recently as well.  I am going to head over to Loreena's blog. Happy SuperBowl Sunday! -Kasey
7:40pm • #1
1,338,732 Points 128 Featured Posts Localism Sponsor Outside Blog Attended Rain Camp Called Shot Master

I have seen buyers negotiate just to negotiate. Not too long ago a offer was negotiated late at night. We needed  a final signature. The buyer waited until later the next day  to tell us  he was going to negotiate just a bit more. He lost the house!

Margaret
7:40pm • #2
374,636 Points 24 Featured Posts Outside Blog Called Shot Master

They all hear so much about a buyers market they are compelled to try to get the lowest price and a "deal" before they are happy. They just don't get that they may lose the house they were looking for. It seems that if they cannot "do the dance" then they are not happy.
8:45pm • #3
FEB
13
2012
762,684 Points 69 Featured Posts Outside Blog Attended Rain Camp Called Shot Master

This is so true.  So many buyers miss out because they want "a bargain".  If you love the house and you can afford it.  Buy it.
4:09pm • #4
648,311 Points 63 Featured Posts Localism Sponsor Outside Blog Called Shot Master

I like Margaret's comment.  Some just don't understand that the dance has to end at some point.  Going back again and again for yet another bite at the apple is how deals die.  Pleading poverty when you are buying a $1 million plus house gets old fast.  Particularly if you are looking to close a $10k gap with the agent's commission.  We are NOT ATM machines and anyone buying a house of that size that can afford it is doing far better than I am - so leave me the income that is vital to my survival. Thanks in advance. 
11:42pm • #5
FEB
16
2012
Outside Blog

Buy it if ya' like it!  Love it when folks cry poor and have / want to live in multi-million dollar homes.  That's why they do well finanically, I'd guess.
5:39pm • #6
FEB
25
2012
715,935 Points 69 Featured Posts Localism Sponsor Outside Blog Called Shot Master

There are two kinds of inventory on the market - properties that buyers want (priced to sell, updated, move-in, good floor plan, curb appeal) and all the rest.  The first sell quickly, the rest sit and get stale.  If buyers are interested in the first kind, they have to move fast.
7:54am • #7
648,311 Points 63 Featured Posts Localism Sponsor Outside Blog Called Shot Master

Hi Women of Westchester - Its an epidemic.  I had a buyer of a $1 million + property cry poor about only having social security and a small pension.  Then why are you able to plunk up over $1million in CASH!  If you need that money for income, buy something more modest. 

Hi Gail, Very  few buyers want anything other than turn-key.  But they still want DEEP discounts. Not happening. 
8:41am • #8
FEB
28
2012
1,262,536 Points 2 Featured Posts Outside Blog Hit Router

I always enjoy stopping by and reading your blog post. Hope you Monday is a good one
6:03pm • #9
237,744 Points 9 Featured Posts Outside Blog Called Shot Master

The other problem is folks that THINK it's a buyers market when really the tide has turned a little.  I have a buyer wanting to make offeres $20-$30k under asking price when realistically these houses are selling for full price and quickly...-Kasey
9:34pm • #10
MAR
09
2012
455,883 Points 24 Featured Posts Outside Blog

I think buyers are over confident at times, thinking it's a "buyer's market" not realizing that means there are other buyers out there with their hat in the ring too. They can't imagine someone ELSE may be interested in the house THEY want...yes.  

When I tell some buyers that "This house is priced well and won't last long" they scoff, roll their eyes, and think I'm feeding them an old sales pitch to pressure them.  Then they are shocked three weeks later while they're still "thinking it over, don't want the seller to think I'm too anxious" that someone ELSE has pulled the trigger....
4:53am • #11
648,311 Points 63 Featured Posts Localism Sponsor Outside Blog Called Shot Master

Hi Tom, After a long abscence I'm back on board...

Hi Kasey  - The raging buyers market is sooooo 2010 and early 2011.  Looking back on it, I think we will realize that the tide started turning in the last half of 2011. Buyers are losing some of their leverage.  Like the sellers before them in 2007 who didn' smell the coffee perking - it will take a while for them  to understand that it is no longer a free ride. 

Hi Karen - Happened this week to one of my buyers.  The buyer was trying to get approval from the dreaded parents.  The parents wanted a  steal not a deal and you knew they were know-it-alls wanting to put in competing offers and find out what the lein was before making offers. Yadda, yadda.   I told them they needed to look at what the property is WORTH.  Didn't want to hear it.  There was an offer on one of the major properties in contention and that they had to step up to the plate.  Meanwhile, they talked about sleeping on it while on vacation!   I told them if they wanted it they had to move.  They didn't listen.  Going, going, gone. 
7:57am • #12


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Ruthmarie Hicks

White Plains, NY

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Keller Williams Realty - White Plains NY

Address: 120 Bloomingdale Rd. Suite 101, White Plains, NY, 10605

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