It strikes me as ludicrous to consider current conditions detrimental to the seller, especially if that seller is also a buyer. Needless to say, any financial compromise incurred on a sale will likely be recovered on the buy. Everyone should consider: (1) The inventory of existing homes for sale in the Coachella Valley is the lowest since December 2005 as home sales rose 1.2 percent in September over September 2008, per reporting by the California Desert Association of REALTORS in early November. (2) Interest rates are at a 38 year low, according to Freddie Mac's weekly survey of conforming mortgage rates (4.81% on a 30 year fixed-rate and 4.32% on 15 year fixed-rate loans). (3) The expanded tax credit goes away on June 30th, 2010. (4) The FHA is considering revising its criteria, which would make qualifying slightly more challenging for some borrowers.
I found Harvey Mackay's column "Negotiating in a Nutshell" very relevant to today's real estate market and have excerpted it below. Whether you're a home buyer or seller, it is a good time to think about how to take advantage of the market conditions before they inevitably change. I've followed Mr. Mackay's advice with some very compelling reasons to react to the opportunities currently available. By most accounts, we are at or near the bottom of the market. If there remains a 5-10% question mark, the solution is to negotiate.
As you'll be reminded by reviewing our statistically laden blogpost of November 14th (http://lovepalmspringshomes.com/?p=725), the Coachella Valley is a particularly strong value and is demonstrating renewed strength. Visit http://www.palmspringsgreathomes.com to find some truly great properties and to search the entire Palm Springs area MLS.
The only way to know that a market has hit rock bottom is when you look back after its rebounded. We are in that rebound now. If you're still not convinced, you will be able to proceed with confidence once you digest the facts and utilize them with these negotiating skills outlined by Mr. Mackay:
- Never accept any proposal immediately, no matter how good it sounds.
- Never negotiate with yourself. You'll furnish the other side with ammunition they might never have gotten themselves. Don't raise a bid or lower an offer without first getting a response.
Here are some more rules of the road:
3. Never cut a deal with someone who has to "go back and get the boss' approval." That gives the other side two bites of the apple to your one. They can take any deal you are willing to make and renegotiate it.
4. If you can't say yes, it's no. Just because a deal can be done, doesn't mean it should be done. No one ever went broke saying "no" too often.
5. Just because it may look nonnegotiable, doesn't mean it is. Take that beautifully printed "standard contract" you've just been handed. Many a smart negotiator has been able to name a term and gets away with it by making it appear to be chiseled in granite, when they will deal if their bluff is called.
6. Do your homework before you deal. Learn as much as you can about the other side. Instincts are no match for information.
7. Rehearse. Practice. Get someone to play the other side. Then switch roles. Instincts are no match for preparation.
8. Beware the late dealer. Feigning indifference or casually disregarding timetables is often just a negotiator's way of trying to make you believe he/she doesn't care if you make the deal or not.
9. Be nice, but if you can't be nice, go away and let someone else do the deal. You'll blow it.
10. A deal can always be made when both parties see their own benefit in making it.
11. A dream is a bargain no matter what you pay for it. Set the scene. Tell the tale. Generate excitement. Help the other side visualize the benefits, and they'll sell themselves.
12. Don't discuss your business where it can be overheard by others. Almost as many deals have gone down in elevators as elevators have gone down.
13. Watch the game films. Top players in any game, including negotiating, debrief themselves immediately after every major session. They always keep a book on themselves and the other side.
14. No one is going to show you their hole card. You have to figure out what they really want. Clue: Since the given reason is never the real reason, you can eliminate the given reason.
15. Always let the other side talk first. Their first offer could surprise you and be better than you ever expected. *
For more details about reasons to be motivated to buy and sell homes in this current market, please visit our blogpost "How to Negotiate Palm Springs Real Estate"
By the way, don't forget to check out and also subscribe our Palm Springs Area Social blog and our "Love of the Desert TV" Channel.
*Reprinted with permission from nationally syndicated columnist Harvey Mackay, author of the New York Times #1 bestseller "Swim With The Sharks Without Being Eaten Alive."
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