Why posting photos of the home you’re purchasing before you close on Social Media is not good for your transaction?
Buyers, in a transaction you can expect four negotiations. The first negotiation takes place when you inform me you want to make an offer. I immediately provide you with three reports about the neighborhood. An Area Market Survey, A Market Statistics, and a Market Trends reports shows you what Relevant Homes have been listed for, have sold for, and the average negotiation range, to help you to make an informed offer the Seller will respect, when I include the research about their subdivision with the offer you make. Including your Pre-Approval Letter when financing the purchase, or Proof-Of-Funds Letter when paying cash, helps me to make you irresistible to the Seller, creating a positive emotional feeling of not wanting to lose you.
The second negotiation occurs immediately after the Inspection of the home which is expected to take place within the first five business days after mutual acceptance of all the terms negotiated in the initial offer, which now is considered a contract. I call Inspections “The-Dream-Killers,” because once the Buyer experiences all the repair issues with a home, it quickly turns from a “Dream-Home” to a “Money-Pit!” This is when Buyers and Sellers hopefully negotiate a “Win-Win-Remedy-to-the-Repairs.” Depending upon the motivation of the Seller, the Buyer may benefit through a further price reduction, a money credit given them to supervise the repairs themselves, or the Seller agrees to have the repairs done professionally.
A third negotiation may take place if the home does not appraise. When a Buyer is financing, their Lender will order an Independent Appraisal of the home to insure it is worth at least the amount financed. If the home appraises for more than the agreed upon price, the Buyer benefits with some potential immediate Equity in the home. Equity means the difference between what is owed on the home, and what it is potentially worth. When it appraises for less, this opens the door for the Buyer to request the Seller reduce the price to the appraised value. When a Seller is sufficiently motivated, or artificially motivated, they tend to allow their emotions to move them to not lose the Buyer, if the home has enough equity to allow them to reduce the price. This rarely happens in my transactions because I do enough research before the initial offer is presented to insure there is sufficient recent Relevant Sold homes in the neighborhood supporting the subject house will appraise.
A forth negotiation can happen if the final walk-through does not go well. I recommend the Buyers conduct the final tour of the home a day before the closing just in case there is an issue discovered, I have time to give a courtesy call to the Listing or Seller’s Agent to help me resolve any pending problem. When Sellers are so close to closing the deal, again their emotions will encourage them to do what they need to do to keep the Buyer from walking.
It is so important for Buyers to act like Secret-Agents while they are in the deal pending process of a home purchase transaction. Posting photos of the home they are purchasing before they close ruins the Buyer’s negotiation edge on the Seller. The posting tells the Seller, if They or a Relative or a Friend finds the post, the Buyer plans to purchase the home regardless of any future negotiations. The power I have as a Buyer’s Agent to create Realistic or Artificial Seller motivation is just snatch away from me when the Buyer reveals how much they adore the home prematurely. Plus, until we hear those magic words “Clear-To-Close,” and the Closing on the home has actually taken place, Buyer, you are still working on procuring financing, and there is always the possibility further negotiations may be pending.
Buyers, please never post photos of the home you’re purchasing on Social-Media until you have fully closed the deal. Never throw away your negotiation advantage because you get caught up in wanting to share your excitement of your new relocation adventure with your Loved-Ones and Friends on Social Media. Instead, please use your On-Line Energy to research the Village or City website to learn about all they do to enhance the lifestyle experience in the community.