Home > Blogs > Renee Stengel > Renee 's Blog

Be A Smart Negotiator

By Renee Stengel

Real Estate Agent with Houlihan Lawrence, Associate Broker

January 30, 2008 10:51 PM

The Spring market is just about here. Interest rates are falling. Deciding to purchase a home is a big step. First time buyers can be the beneficiaries of falling prices. Buyers should find out all they can about the area they want to live-in, ask their agent to do a Comparative Market Analysis for them and also try to find out how much the seller paid for their home. Does the seller have a time frame? I always caution my buyers not to, "Fall in love," with any home so they can treat their negotiation process as a business deal. The more knowledge you can glean the more negotiating power you have.

The Los Angeles Times article, Smart Buyers Know How To Negotiate.

Comments(10)

Comment

Show All Comments

Sort:

Lu Kalaj

Vision Realty Centers - Brighton Township, MI

You are right.... homes come and go, and people are always changing their mind. Its our job as agents to educate our buyers to make SMART decisions for themselves. I hope 2008 brings you these kind of buyers. Lu

Jan 30, 2008 10:58 PM

Anonymous

Thanks, for your positive comment. I strongly believe informed buyers are smart buyers.

Jan 30, 2008 11:01 PM

Gaye Granice

Robert Defalco Realty - Staten Island, NY

Associate Broker

Even better Smart Brokers Know How to Negotiate.

Jan 30, 2008 11:08 PM

Anonymous

Very true, but first time-buyers need to be helped along by gathering as much information as they can.

Jan 30, 2008 11:17 PM

Antoinette Scognamiglio, GRI, ASP

Coldwell Banker Realty - Mountain Lakes, NJ

There's no substitute for EXPERIENCE!

Great post, but personally, I have a low opinion of the article...

"Ask questions about the sellers, such as why they're selling, how long the home has been listed for sale, how soon the seller needs to sell, the mortgage balance, how much the seller paid and any defects in the home..."

The mortgage balance is none of the buyer's business. How much the seller paid is not always an indication of current market value. Of course, the buyer is volleying to see how much equity the owner has in the home. Defects in the home is a matter of full disclosure. Then again, if you're dealing with a FSBO, good luck to them.
"Make your offer based on your superior knowledge of the local home prices and the seller's motivations for selling. If the other buyer gets the house, he probably overpaid for it...."

Not always. The writer is pandering to the bottom feeder here, and really has given a "sour grapes" feel and adopted an immature attitude to boot! Wonder how many homes he lost out on?

Jan 30, 2008 11:41 PM

Anonymous

Hello,

I respect to right to disagree, however, I strongly believe that knowledge is power for a buyer. An agent job is easier with an educated buyer. Yes, defects in a home must be disclosed. Full disclosure by an agent if they have knowledge of a defect is part of the definition of an buyer's agents job. That is also part of the engineering process. As you suggest, "If the other buyer get the house, he probably overpaid for it." Bidding wars, even in the New York market, are few and far between. My bottom line is I believe this article is helpful to a buyer!

Jan 30, 2008 11:50 PM

Diane Aurit

LKN Realty, LLC - Mooresville, NC

Lake Norman Real Estate

The better educated the buyer is about the market the better. CMA's are a must!

Jan 31, 2008 12:08 AM

Anonymous

Diane,

I totally agree.

Jan 31, 2008 07:06 AM

Gita Bantwal

RE/MAX Centre Realtors - Warwick, PA

REALTOR,ABR,CRS,SRES,GRI - Bucks County & Philadel

Thanks for the post.As buyers agent we have to try and find out the motivation of the seller. If the seller is the original owner there may be room for negotiation. etc. Thanks for sharing.

Feb 01, 2008 02:59 AM

Anonymous

Thank you Gita. I have had a few agents say that this article was not helpful. Sorry, but I see this very differently. Can't imagine being negative about someone's blog.

Feb 01, 2008 03:49 AM

#10

Older Post

Newer Post

Rainer
33,354