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