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Not a total loss...-Part 2 of 'Bleeding in the Reno Sparks Home Market'

By
Real Estate Agent with Chase International Real Estate 61032

My recent post "Bleeding in the Reno Sparks Home market" might cause me some enemies and people saying, "Your looking at the glass half empty!"

I beg to differ. I see multiple opportunities on the buying side of the Market, allow me to explain.  If you are a buyer now (first time,repeat,investor) I don't think I need to tell you about all the inventory that is out there and the number of sellers that are ready and willing to negotiate {more so the builders, Who are now paying commission to Outside Agents (they never use to) and giving unbelievable incentives just to close the deal.}.

Great Deals are out there to be made in this market. You just have to know what you are trying to accomplish and what is your top priority. You must negotiate.  Below is an article about this one specific necessity to get that best deal for you in this market.

But before reading that,I just wanted to expound on the point that, "You have to know what you are trying to accomplish,your top priority".  If you're thinking on buying a home (because it's so much cheaper compared to the precious years) and then 'flipping' it within the next few years. I don't think that is a good idea.

The market based on statistics, is still in a downward trend. I stated this on my last post, 'bleeding', But if you're thinking of staying in the house for the long run( at least 10 years) then that's a different story.

The opportunity that I'm talking about lies in the incentives of the builders and resales is giving you.  They are definitely in the mood for negotiations.  But 'Joe it'll only get worse and cheaper" yeah could be, but not necessarily.

The home builders in the Reno Sparks area are severely cutting down their inventory. They're not building half as much as they did a few years ago. I have Statistics to back this up.

Daily Real Estate News  August 21, 2007

Negotiators Miss Out By Accepting Deals too Fast
Most people — even those who think they have great negotiating skills — accept the deal too quickly, according to a study on how far both buyers and sellers are willing to go in a negotiation.

''Even experienced negotiators are not immune,'' says study co-author George Wu, a professor at the University of Chicago's Graduate School of Business. ''People almost always underestimate'' how far they can get the other side to go.

Rick Larrick, associate professor of management at Duke University's Fuqua School of Business and another co-author of the study, offers this advice for those who want to be a better real estate negotiator:

  • Weigh your alternatives. ''The only time you should be concerned about the other side walking away is when you don't have good alternatives,'' Larrick says. "If you're buying a house, you should know if there is another one out there that you would be happy to buy if you couldn't get this one at a certain price. If there is, you can make the other side sweat.''
  • Know the value. Whether you’re the buyer or the seller of a home, know the value of the property. "Look at everything in that range and know what else buyers interested in your home might be seeing,'' advises Fran Vernon, an associate with Dilback REALTORS® in La Canada, Calif.
  • Have patience. A buyer or a seller who is not in a hurry can rise above other buyers or sellers in the same price range.
  • Learn from your deals. Just because you walked away feeling like a winner doesn’t mean you were, Larrick says. Pay attention to subsequent similar sales, so the next time you can do better.

Source: Tribune Media Services, Kathy Kristof (08/19/07)

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