Phil Hartog, Tips On Buying Property

Author: Roselind Hejl
Real estate negotiation requires skill in giving and taking information. Here are seven strategies to help you show the seller that your buyer is the best candidate for the home.
An important part of our job as Realtors is to help our clients negotiate for the best deal on a house. Your confidence and professionalism in this area will make your service memorable to your clients. Here are some strategies to help you guide your clients through the negotiation process.

1. Constantly re-establish trust.

Establishing trust between the parties is the most important strategy in any negotiation. Buyers and sellers know that the other party has interests that are in conflict with theirs. They begin with a certain amount of wariness of each other. It is valuable to establish rapport quickly. Show them that you and your clients will be reasonable to work with. Here are some ways for your clients to establish common ground:

Communicate that they have a common hobby, the same type of job, moved here from the same area, went to the same college, have similar children’s needs, or other relatedness.

Present evidence that your clients are qualified to buy the property.

If your buyer works for a well-known company, this may increase the seller’s trust.

Never delay your counteroffers. Show respect for the seller’s time.

Communicate that the buyer appreciates the home.

Begin the negotiation by establishing rapport. Then continue to reinforce it throughout the closing process. I have noticed that buyers are often reluctant to show that they like the house. They believe that an aura of disinterest will help their negotiation. I recall a transaction in which the buyers met the seller, and expressed how much they liked the house. During the negotiation the seller had multiple offers to choose from. Their offer was selected. The buyers’ encounter with the seller, and openness about how they felt, gave them an edge. Also, they were real people to the seller, while the other offers were just paper. The seller trusted them to close the deal.

2. Don’t get negative feelings involved.

While trust is the single most important factor in a negotiation, ego is the most destructive. Many times I have seen buyers include notes with their offers. They point out faults and deficiencies, and explain why the home is not worth the price. I guarantee that these buyers paid a premium. The point is, never run down the sellers’ home. This will bring their feelings to the table. And negative feelings are an unnecessary hurdle to have to overcome. If you have the opportunity, compliment the sellers’ house, decorating and gardens. Don’t forget that their children are always above average, and their pets are practically human. During the negotiation, anchor your offer price to market data.

3. Play on the Same Team.

It is important that you stay on the same team as your clients. A united front is a strong negotiating position. This may not be the way things really are. The wife may love the house, but the husband wants to negotiate the price. You may not approve of some of the terms of the offer. If you reveal a break in your ranks, the sellers will consider your position weaker.

4. Keep a Grain of Salt.

A healthy skepticism is a good thing in negotiation. Not everything you are told is true. How many times have you heard that the contract has to be in this quarter, or the price is going up? Does the 1% bonus for contract this week mean that you have to rush your offer in? Is the price really firm? Proposals such as these show you what is important to the seller. The seller may want close quickly and for full price, but, on the other hand, the seller may want to close, period. I can think of many times when I thought the buyer’s offer would never work, and yet, they got their terms.

5. Understand Special Needs.

A big part of negotiation is subtle. Little things make a big difference. Sometimes good deals go off track because of a difference in the style or personality of the parties. A misperception of the required tone can lead to a decline in trust. Some examples:

Slower Pace - The sellers were a couple in their 90’s. Since they did not leave the house, the buyers met them several times. The buyers took extra time to sit down and talk, and formed a strong bond.

Holy Ground - The sellers had a small grave for their dog on the property, which they were very sensitive about. The buyers realized this, and sent word that they would leave it in place.

For the Birds - The sellers had numerous bird feeders on the property. The buyers keyed in on this, and offered to continue feeding the birds.

Get a Grip - The sellers’ agent tended to give wrong information, did not handle details well, and was untrustworthy. In order to preserve the buyer’s trust, it was necessary to double check everything, handle paperwork, and watch deadlines.

6. Keep private things private.

Buyers may have some issues that should be kept private. They may have just sold their house, and need to act fast. They may need to start kids in school. They may be in the middle of a divorce. They may have an interest rate that is about to expire. Not one of these pieces of information will get them a better deal on a house. In fact, they all indicate that they are under pressure. Your buyers should be perceived as folks who are well qualified, who truly appreciate this home, and who can be trusted to close.

7. Get good information.

Here are some questions to ask before you and your clients compose an offer:

How is the market in general? How are other actives and recent sales priced?

How long has the home been on the market? Have there been price changes?

Did the house sell recently? What was the price?

Is there a time deadline that must be met? Would a pre or post lease be desirable?

What is the appraisal district value? The taxes? The HOA dues?

Is a disclosure available? A property inspection? A survey?

Are there any offers expected, or on the table now?

Price is just one consideration in the negotiation for a home. Other terms, such as financing, close date, repairs, or possession date may be just as important. Negotiating for a house requires skill in giving and taking informationBusiness Management Articles, and in communicating to the seller that your clients are the best buyers for their property.

Author: Luke Bouman

It takes a lot of hard work and determination to have a successful career in real estate. I have been in the business for less than a year, but have come up with a survival guide to make it in this business.
Real estate can be a very lucrative career, but it takes hard work, perseverance, and a little luck along the way. Many people join the real estate field because of the potential for great wealth and because of the relative ease of getting a license. Little do people know how expensive, frustrating, and stressful this job can be. When getting into this exciting career of real estate, I was warned that 70% of agents are out of the business within a year. I do not know how realistic that statistic is, but it is obvious that there is a high turnover rate in this business. Too much money goes out and not enough money comes in.

I am now well on my way to have a successful career in Real Estate, but it has not been easy. I recently graduated from College with a degree in Business and started my career in real estate at the age of 22. The housing market that I have experienced has been less than forgiving. Many times I have been asked why I started my real estate career at such a poor time, but that has not stopped my drive to be a successful Realtor. So here are my tips for surviving.

First and for most, prepare yourself for what your getting into. This is not a profession for the faint of heart. You must be prepared for the ups and the downs and be able to survive without getting paid for months on end. When getting into this profession I was told that I should have enough money to last for 6 months without being paid. Many of you may be like me and believe that this would not be the case. I figured it would be a couple of months before I started raking in the money, but it was 5 months before I received my first pay check. So let me remind you to have enough money to last for 6 months.

Secondly, find a company that has training. I would not be where I am today without the training my company provided. There is so much to learn in this profession that you need someone to guide you. I am currently on a 12 month mentoring program which is an expense every month, but an expense that I am willing to pay because of its rewards.

My third suggestion would be to have no inhibitions. Get out there and knock on those doors, call expired listings and for sale by owners every day, do presentations at local businesses, make a habit of calling your sphere of influence, talk to your local chamber and ask for their relocation leads. Find ways to get your name out there without spending any money. I spent hours last summer knocking on people’s doors, and asking them if they had any plans of moving in the near future. And guess what, some of them did have plans of moving!

Fourth, get a website and work on Search Engine Optimization. It is no secret that buyers are going to the internet to find a home these days, so you better make sure people are getting to your website. I have only had my website for a few months, but it is something that I am improving and will continue to improve because of the internet’s potential.

Finally, stay positive! It is too easy in this profession to get down on yourself. You need to remind yourself that things are not always going to go your wayHealth Fitness Articles, and be willing to say “next”. Just make sure that you are getting things done that will better yourself in the future. So go out there and do it!