A Penny Seems Small Until It's Not

By
Real Estate Agent with RE/MAX Elite 513.520.5305 www.LizTour.com SAL.2002007747

I'm an engineer, so when I'm making a purchase I'm mentally running a value calculation in my head. 

Is the product or service worth the asking price?

Can I get it for a better price elsewhere?

What's the value of my time spent trying to save those dollars?

If the value is there, I'll make the purchase.  If it's not, I'll move on.

Buying or selling a home isn't that much different and comes with its own set of calculations.

If you're the seller, what are the costs of selling?  How much mortgage remains, taxes, agent fees, etc.  You've got an offer, what's the difference between owed and offered? 

What's the value to you of just being DONE vs. the uncertainty of when the next offer will arrive and what will the offer be, more or less than the one in hand? 

You set a value you're willing to accept.

If you're a buyer you're figuring monthly payments, HOA fees, the cost of MUST DO repairs and the cost of future changes you want to make. 

You set a value you're willing to pay.

And now the dance begins.  Offer, counter, counter to the counter.  If both parties are fortunate, the two numbers overlap and a deal comes together.

But it's not uncommon for both sides to get CLOSE, but not quite there.

One percent (or less) is the size of the gap.

A penny out of every dollar.  That doesn't sound like much does it?

But that 1%, that penny for a dollar, that small fraction...that's a HUGE part of the deal.

Closing that gap, or not, decides whether the offer stays an offer or becomes a contract.

Sometimes one side sets aside their ego, flexes on the number they'll take and the deal is made.

Other times, each side comes up to the line, stares across, states "NOT ME!" and refuses to budge.

The buyer moves on to their next option, the seller continues waiting, all over 1%.

It doesn't sound like much, until it is.

Serving Greater Cincinnati home buyers and sellers,

Bill & Liz aka BLiz

Posted by

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

MailTo:  Liz@LizSpear.com

Search Homes:  Https://WarrenCountyOhioRealEstate.com

Our Website:  www.LizTour.com

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Rainmaker
3,341,198
Endre Barath, Jr.
Berkshire Hathaway HomeServices - Beverly Hills, CA
Realtor - Los Angeles Home Sales 310.486.1002

Bill what a great message let me add to it, in the 1970's in New York State the Russian mob was skimming two cents off every Gallon of Gasoline.... they made Billion:)Endre

Nov 23, 2019 10:04 PM #1
Rainmaker
3,559,226
Wayne Martin
Wayne M Martin - Chicago, IL
Real Estate Broker - Retired

Good morning Bill. Since time is money, every penny counts! Enjoy your day!

Nov 24, 2019 05:31 AM #2
Rainmaker
3,621,614
Michael Jacobs
Pasadena, CA
Los Angeles Pasadena 818.516.4393

Hello Liz and Bill - perspective matters.   Thanks for providing more than a penny's worth of thoughts.  Time well spent.  

Nov 24, 2019 06:49 AM #3
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873,010
Mimi Foster
Falcon Property Solutions - Colorado Springs, CO
Voted Colorado Springs Best Realtor

One of the more frustrating parts to our job. A $400,000 sale is lost because neither buyer nor seller will budge on a $1,500 difference. Pride is often involved. 

Nov 24, 2019 08:34 AM #4
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