Brenda Leguisamo here with a real estate tip of the day. Today, we’re going to talk about negotiation. As you know, real estate sales are one of the biggest either sales or investments of a person’s life. With that large sale or investment comes a lot of pressure, but it doesn’t need to be stressful as long as you know how to handle each situation with strategic advice.
For example, when negotiating a contract, the key thing to create a win-win for both parties is to understand what each party wants and also the reality of achieving each of those wants. A seller might want a specific price on a property and a buyer may want to pay or may be able to pay a specific amount on a specific property while the buyer is paying in cash or whether the buyer is financing it with a mortgage.
On the sell side, a seller may want a particular price perhaps because the seller needs to pay off a loan that they have on the home. In addition, they’ve probably made upgrades on the home that helped to increase the value of the home. Therefore, they believe from their point of view and also from what the market shows that the value of the home is the price it’s selling now.
The value of the property that’s for sale may not necessarily always be the price that the market is willing to pay. You are able to get help with a real estate agent to really dive in and analyze the market in the area to identify comparable properties to that home so that the buyer that’s going to make the offer can make the best informed offer for that property. When the seller is ready to price the property with a realtor that they hire to list the property for sale, the realtor will also help the seller to analyze the market to see the true value of the property to be able to manage the seller’s expectations. The realtor representing the buyer is also able to manage the buyer’s expectations on what the closest true value of the property is because the market already dictated that with the previous recent sales in the area comparable to that property.
That is one of the tips of the day in regards to negotiation. Understanding what each party wants and being informed with actual market data with the help of your real estate agent.
If you have negotiation tips of the day, whether you’re a real estate professional, a seller or a buyer of a property who also gained insight from your experience, please feel free to share here in the comments.
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