This is a must read for those who think we can predict the future.
I've had buyer clients tell me (six months ago) "We're not going to have the sellers dictate the price." And right when those words were spoken guess what? The market was tipping to very low-inventory. The sellers actually did dictate . . . they pulled the property off the market altogether and decided to wait.
So what are these savvy buyers looking at? Low inventory, prices that they can't really haggle much over . . . and staring low interest rates straight on.
This type of "haggling" over the smallest amounts on the table, and walking away over $2,000 -- which is what some buyers almost did last month -- is what my Mother would have summed up with: Cutting your nose to spite your face.
In the example made by Tammy Lankford about her friend walking over a car purchase and $200 more the dealership wanted -- well, let's just say: We're not selling cars. Buyers walking in a home purchase in this current market aren't going to get a call back. Another set of buyers will gladly step in.
Of course time travel isn't possible (or is it?). But if you made an offer on a home in the last six months and are still looking for a property today because you didn't listen to the advice your buyer's agent gave you about what to offer and have paid rent an additional 6 months do you have regrets?
If you are home seller who got an offer that was less than 1% of your "bottom dollar" and you've continued to make a mortgage payment with interest payments equal to 2% of your "bottom dollar" over the last 6 months do you have regret?
Sometimes people did their heels in and stop to use logic and reason. It becomes "the principle" of the thing and you lose sight of the big picture. Sometimes trying to get that "little bit more" can cost you the whole thing. Recently I purchased a car. At the time I made my purchase I told my sales person about a friend who was also in the market for a car. She called my friend. My friend test drove a car, test drove a second one and made an offer. The dealership played their little "I have to talk to my manager game" and came back at just $200 higher than the offer. My friend laughed and walked. After a couple of hours went by the salesperson called back to "accept" my friend's offer. ONLY that offer was no longer on the table. My friend charged the dealership an "aggravation fee" of $500. Yes I'm serious. How many times have you wanted to charge an aggravation fee?
Today I imagine a day 6 months from now a house will still be on the market and sellers will be sulking that they didn't take a cash offer that was well over any sold comp in their neighborhood by more than $30 sq. ft. that has sold in 2 years. I have feeling that they will be playing the if only game down the road. Agents who provide you with a CMA don't just make up numbers. We pull SOLD comps. And if you agent is only talking to you about other homes on the market when discussing price you need to hire a new agent. Comps are SOLD properties, not other listings. Buying or selling your agent should be doing a CMA for you.
Me? If could go back 6 months I would have spent a little less money on Christmas and baked a little more. And my take away from my latest negotiations... I don't plan to regret anything 6 months from now that I didn't do today. So I'm about to go spend some times with my family. And if you can't use logic... I can't work with you.
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Tammy Lankford, Broker/Owner
Broker License # 169695 Lane Realty License # H-11420
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