Art of Negotiating for Summit County CO Home
By Craig Walsh
Whether buying or selling Summit County, Colorado real estate or Breckenridge, Colorado real estate, negotiation is crucial to a successful transaction. Every negotiation should follow a formula, beginning with preparation and ending with a proposal accepted by all parties. Negotiating is about gains and concessions between willing parties. The more educated a client is, the better the chances of reaching a smooth, mutually acceptable conclusion.
The “Offer To Purchase” a Summit County or Breckenridge home is the result of buyers who have done their “prep” work and sellers who choose to bargain. Spending quality time on the preparation phase will reduce the time and stress involved in the bargaining phase later. The experience of a Summit County CO real estate professional serves either side to glean a clear understanding of all aspects of the transaction.
Sellers, buyers, and agents for Summit County Co real estate can prepare for bargaining by finding out the facts. When negotiating a Summit County home’s sale, sellers and buyers can’t ask too many questions to enhance their negotiation position. The prime reason is to determine how motivated the other party is to buy or sell. The best way to get the information needed is by asking key questions in a friendly and gracious manner.
It is imperative to have answers to these questions:
1. Why is the seller selling his nice home? The answer to this question will help the buyer to make an offer that meets the seller’s needs. If a seller needs cash, a low cash offer on a run-down house may be the ticket. If a person needs money to live on during retirement, they may like 10 percent down with a 90-percent seller carry back.
2. What was the home seller’s purchase price? Without this information, buyers are at a severe negotiation disadvantage. If a home was purchased for a low price years ago, there’s a lot more wriggle room than if it was purchased within the last few years. However, if the seller has a high-motivation reason for selling and needs a quick sale, possibly the buyer could take over payments on the current mortgage.
3. Does the other party have a time deadline’ If one party has a job transfer or is already purchasing another home, then there is a helpful sense of urgency. Without a timeline, buyers and sellers can drag out the process by not making decisions.
4. Has the seller obtained a professional home inspection report? Today’s smart real-estate agents suggest that their sellers get a professional inspection report at the time of listing the home for sale. This makes the seller fully aware of defects. They are responsible to repair them or to fully disclose them to prospective buyers (averting future lawsuits). Even so, smart buyers include a contingency clause for the buyer’s approval of their own inspection report obtained at the buyer’s expense in their purchase offers.
5. What is the buyer’s motivation to purchase a home? If the buyer has indicated a key reason why he is considering a particular house (great condition, outstanding school district, need to move in quickly), the seller can use that information to enhance his negotiation position.
6. Ask a creative open-ended question to find out if there is anything else that needs to be considered.
Negotiate only with people who want to negotiate. If there is weak motivation by the other party, there is not a strong climate for negotiation. However, if the other party is highly motivated, then there is a strong circumstance to negotiate your best price and terms.
Articles © Copyright 2006 by The Walsh Group