What A Seller Paid For A Home Is Not A Negotiation Tool
During recent negotiations I was really taken back that an agent was using what her sellers paid for the home as a negotiation strategy. It’s not uncommon for a seller to want to base their sale price around what they paid for the home or for a buyer to want to make a low offer because they see that the sellers bought years and years ago and likely have substantial equity but, as a real estate professional we know (or should know) neither scenario is a tool for negotiation.
Real Estate is always changing and a home’s value is going to change with it. It really doesn’t matter what a seller paid for the home and in turn it’s never a negotiation strategy I’d consider using. The agent I was working on negotiations kept coming back with what her sellers paid and while I felt for them because they had bought at the absolute height of the market the reality is that’s not what the home is currently worth. The house had been on the market for almost 2 months and in our current market that’s an eternity. It showed beautifully and was in a great location but, the comps didn’t support the list price. We weren't able to come to terms during negotiations and the house is still on the market 2 weeks later.
When negotiating on a home there are many reasons that are relevant for a buyer not wanting to pay full list price or for a seller justifying why full list price is reasonable but, what the seller paid for the home is not one of them in either scenario. Hiring an agent that knows your local market whose expertise you trust is imperative for a successful sale.