It's All About The Net When Negotiating A Home Sale

Real Estate Agent with RE/MAX Elite 513.520.5305 SAL.2002007747

It's about net priceIt's All About The Net When Negotiating A Home Sale

It's very common in the Cincinnati area for home buyers to ask sellers to make concessions when offering to purchase their home.

  • Thousands of dollars in closing cost assistance
  • A one year home warranty that wasn't offered by the sellers
  • Appliances that weren't included in the MLS entry
  • Owner's title insurance paid for by the seller

These things add up and can be a significant expense to the sellers.  And some buyers might think that asking for all those things and then offering "full price" is actually a full price offer, but it's far from it.

A full price offer is just that, a full price with NO extra asks beyond those that were already offered by the seller.

For the sellers, it's all about the net, and as soon as you start asking for extras, you've reduced the sellers' net price when they sell their home. 

So as a buyer, it shouldn't come as a surprise if the sellers counter ABOVE list price if you ask for extras.  Countering above full list price doesn't mean the seller is mad or doesn't appreciate your offer, but to the seller it's not really a full price offer so they'll react to gain an acceptable price to them. 

We have the same discussion with our sellers and buyers, it's all about the net.  Adjust up or down to see what the REAL net price is.  Is the net price reasonable?  If it is, we may just have a deal.  If not?  Let's counter again until we can find a happy middle ground for both sides, or until it doesn't make sense to continue negotiating.

More questions about buying or selling homes in the Warren County area?  Just ask!  You can contact us at 513-520-5305 or email

Serving Warren County Ohio home buyers and sellers,

Liz and Bill aka BLiz

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Serving Warren County Ohio & Adjacent Areas


The Liz Spear Team of RE/MAX Elite
Elizabeth Spear, ABR, CRS, Ohio License SAL.2002007747

William (Bill) Spear, CRS, Ohio License SAL.2004011109  Kentucky 77938
Ask for us by name if you visit the office!

EHO Two locations: Lebanon & Mason, OH
Bill Direct:  513-520-5305
Liz Direct: 513-265-3004     
Fax: 866-302-8418


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Re-Blogged 1 time:

Re-Blogged By Re-Blogged At
  1. Dale Taylor 04/11/2015 04:37 AM
Home Buying
Ohio Warren County
RE/MAX Active Rain Bloggers
Ohio Active Rainers
Advice for Buyers
home buying

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Conrad Allen
Re/Max Professional Associates - Webster, MA
Webster, Ma, Realtor

Hi Bill.  It is so important for the seller's agent to explain exactly what they are selling their home for.  Great blog.

Apr 05, 2015 08:37 PM #27
Nina Hollander
Coldwell Banker Residential Brokerage - Charlotte, NC
Your Charlotte/Ballantyne/Waxhaw/Fort Mill Realtor

It is about the net proceeds! I spend more time than you can imagine (well, maybe you can imagine) explaining to buyers that seller paid concessions are not a gift from the sellers, but part of their calculation for an acceptable net.

Apr 05, 2015 09:14 PM #28
Liz and Bill Spear
RE/MAX Elite 513.520.5305 - Mason, OH
RE/MAX Elite Warren County OH (Cincinnati/Dayton)

Laura, And that's true, we can try to educate a buyer (or seller) about how to handle an offer, but it's ultimately their choice.

Conrad, Clear terms for both sides is critical to ensure we don't have surprises later.

Nina, The more a buyer ask for, the more the seller moves up the bottom line price they'll accept.

Apr 05, 2015 11:42 PM #29
Vern Eaton
Askov, MN
Realtor 651-674-7449

I have had sellers say they would not pay for one thing but would pay for something else and it would cost mor.  But to them it was the princapal of it.

Apr 06, 2015 01:16 AM #30
Gary L. Waters Broker Associate, Bucci Realty
Bucci Realty, Inc. - Melbourne, FL
Fifteen Years Experience in Brevard County

When the dust settles the offer is all about the bottom line. You are right on target.

Apr 06, 2015 01:26 AM #31
Lyn Sims
RE/MAX Suburban - Schaumburg, IL
Schaumburg IL Real Estate

Sounds like you have a rash of buyer incentives in your area. The buyer is going to pay those fees one way or another. Either at close or for 30 years - buyers choice.

I feel that on certain properties, they just attract incentive asking. 3 points here, put on a deck, silly stuff.

Apr 06, 2015 01:26 AM #32
Warren Schutt
Warren Schutt Real Estate - Danbury, CT
Helping People with Their Moves for over 36 Years

Net is the bottom line for sure. I present offers clearly stating what the net offer is and then explain why the offer number reflects a higher number. It helps avoid a great deal of confusion.

Apr 06, 2015 01:43 AM #33
Sylvia Jonathan
Coldwell Banker Platinum Properties - Irvine, CA
Broker Associate, SFR

Yes, it's about the bottom line, right after it's about the marketplace. In a competitive seller's market, don't ask for stuff, dear buyer. In a soft market, why not?

Apr 06, 2015 01:47 AM #34
Ron Aguilar
Continental Mortgage - Saint George, UT
Mortgage & Real Estate Advisor since 1995

This is a normal function that humans participate in. With that being said, never buy a home with emotion only use logic. Next point, never fall in love with one home but keep a few on your radar.

Apr 06, 2015 01:49 AM #35
Jerry Newman
Brown Realty, 210-789-4216, - San Antonio, TX
Texas REALTOR, San Antonio Military Relocation

Hi Bliz, Extra concessions are very difficult to get in a Hot Seller's market, and that's what we've had here in San Antonio for awhile now. Buyers should not be surprised when sellers counter back when they take away to much of the seller's net value.

Apr 06, 2015 04:45 AM #36
Kimo Jarrett
WikiWiki Realty - Huntington Beach, CA
Pro Lifestyle Solutions

Concessions could be a deal breaker but you'll never know until you ask for them, right?

Apr 06, 2015 05:02 AM #37
Liz and Bill Spear
RE/MAX Elite 513.520.5305 - Mason, OH
RE/MAX Elite Warren County OH (Cincinnati/Dayton)

Vern, And the shame of it is that standing on principle may mean the seller doesn't sell for months longer.

Gary, Get the bottom line right and lots of satisfied people.

Lyn, Nothing too extravagant, but I can't count the number of buyers that have essentially financed used appliances in a 30 year loan.

Warren, Keep everyone clear on the the what's what and we may get a SOLD sign in the yard.

Syliva, Hot market for the sellers, a big gamble to push the limits as a buyer.

Ron, Unfortunately in some of our areas inventory is low enough that there might be only ONE really good fit, so we advise the buyer the best path to make sure they don't lose that home.

Jerry, No doubt, sellers may remove those extras right out of the contract.

Kimo, Depends a lot on how big a gambler the buyer is and how badly they want that one particular house. 

Apr 06, 2015 06:19 AM #38
Dan Tabit
Keller Williams Bellevue - Sammamish, WA

Nice presentation and explanation to a common issue we deal with.  Concessions cost money. 

Apr 06, 2015 06:48 AM #39
Nicole Doty - Gilbert Real Estate Expert
Zion Realty - Gilbert, AZ
Broker/Owner of Zion Realty

I have this conversation with my buyers every time we put in an offer. I explain to them what the actual offer is that the seller will see as the bottom line once all the concessions are factored in.

Apr 06, 2015 07:51 AM #40
Liz and Bill Spear
RE/MAX Elite 513.520.5305 - Mason, OH
RE/MAX Elite Warren County OH (Cincinnati/Dayton)

Dan, And directly or indirectly, the buyer is typically still paying for them.

Nicole, And it's good to have them realize exactly the type of offer they're actually providing the seller.  When they realize that, they may not be as inclined to go low or to  ask for as much.

Apr 06, 2015 10:56 AM #41
Claude Labbe
Real Living | At Home - Washington, DC
Realty for Your Busy Life

I surely understand the buyer trying to try to get all they can get.  I get that.

What bugs me is the cover memo from the buyer's agent telling me "we're offering full price !!".  Sure, and you expect me to print this memo along with all your other highlights for me to review with the seller? Because if the first line is a deception, then I'm not going to believe all the other "highlights" are included.

Apr 06, 2015 10:58 AM #42
Liz and Bill Spear
RE/MAX Elite 513.520.5305 - Mason, OH
RE/MAX Elite Warren County OH (Cincinnati/Dayton)

 Claude, And you're not the first agent who I've heard say they have trouble with other agents believing full price but "forgetting" about all those concessions.  The buyers I understand being confused, but the agents?  Them I'd expect to know better.

Apr 07, 2015 04:38 AM #43
Adele Langdon
Los Angeles, CA
Exclusive Realty Inc.

This again all depends on your particular market and like others have said.

How much do your buyers want the property.  Real estate it's all  in the details.

Great post.


Apr 12, 2015 10:20 AM #44
Liz and Bill Spear
RE/MAX Elite 513.520.5305 - Mason, OH
RE/MAX Elite Warren County OH (Cincinnati/Dayton)

Adele, If they want it bad enough, they'll make sure they contribute an offer that at least gives them a solid shot at it.

Apr 12, 2015 10:51 AM #45
Winston Heverly
Winston Realty, Inc. - Atlantis, FL

A super post I came across among the many archieves and frequent bloggers. Thanks for being apart of Active Rain.-

Apr 12, 2015 01:28 PM #46
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