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Real estate negotiation techniques

By golfplan18   2012 Dec 24, 4:40am   1 link   960 views   6 comments   watch (0)   quote      

http://ochousingnews.com/news/real-estate-negotiation-techniques-redux?source=Patrick.net

Negotiating the sale of residential real estate is no more difficult that negotiating for any other product of service that does not have a fixed price; however, due to the colossal cost of houses, the process is more important financially than negotiating for other big-ticket items like automobiles. A mistake made while buying or selling a house could cost as much as a new car; sometimes such mistakes could pay for many cars. Skilled negotiators can obtain favorable pricing and terms without the assistance of a broker, but the novice who is inexperienced at this process often will not. Novice...

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1   swebb     2012 Dec 24, 1:27pm  ↑ like (1)   ↓ dislike   quote    

That was more about an analysis of the process than techniques. I thought it was interesting, but I balked at this line:

"Once a buyer is in love with a property, they will raise their bids until they either have the property or they reach the limit of their resources"

That may be true of a lot of buyers, but it's ridiculous as a general statement. For one, part of being in love with a property (for me, anyway) is the price. If the price gets too high, I'm not in love with it anymore. And the bit about reaching the limit of their resources -- this suggests people have no self control and the only thing that is slowing them down is their finances & lending requirements. Again, maybe true for a lot of buyers, but it's silly if you consider a situation where a buyer could qualify for a $600k loan but is buying a $350k house. If the seller is determined o get $450k for the house, it's exceedingly unlikely that the buyer will pay that amount--even if they are in love with it and can afford it.

2   New Renter     2012 Dec 24, 3:31pm  ↑ like (1)   ↓ dislike   quote    

swebb says

That may be true of a lot of buyers, but it's ridiculous as a general statement. For one, part of being in love with a property (for me, anyway) is the price. If the price gets too high, I'm not in love with it anymore. And the bit about reaching the limit of their resources -- this suggests people have no self control and the only thing that is slowing them down is their finances & lending requirements. Again, maybe true for a lot of buyers, but it's silly if you consider a situation where a buyer could qualify for a $600k loan but is buying a $350k house. If the seller is determined o get $450k for the house, it's exceedingly unlikely that the buyer will pay that amount--even if they are in love with it and can afford it.

Ideally you will have a spouse or other interested party to provide a reality check, preferably in the form of a swift kick to the groin.

3   taxee     2012 Dec 25, 12:27pm  ↑ like (1)   ↓ dislike   quote    

You have a thought disorder and you're doing it all wrong. You're supposed to buy with stolen money so you can keep the price high.

4   HEY YOU   611/611 = 100% civil   2012 Dec 26, 5:08pm  ↑ like   ↓ dislike   quote    

Make one offer. If not accepted, walk away.

5   Kevin     2012 Dec 26, 5:36pm  ↑ like   ↓ dislike   quote    

swebb says

That may be true of a lot of buyers, but it's ridiculous as a general statement. For one, part of being in love with a property (for me, anyway) is the price. If the price gets too high, I'm not in love with it anymore. And the bit about reaching the limit of their resources -- this suggests people have no self control and the only thing that is slowing them down is their finances & lending requirements. Again, maybe true for a lot of buyers, but it's silly if you consider a situation where a buyer could qualify for a $600k loan but is buying a $350k house. If the seller is determined o get $450k for the house, it's exceedingly unlikely that the buyer will pay that amount--even if they are in love with it and can afford it.

The bank won't approve the loan for more than the house appraises for anyway, so this doesn't happen.

HEY YOU says

Make one offer. If not accepted, walk away.

That's an awesome way to either overpay for something (because you failed to use anchoring effectively in negotiations), or to never buy anything.

6   APOCALYPSEFUCKisShostikovitch     2012 Dec 26, 5:55pm  ↑ like (1)   ↓ dislike   quote    

As a general principle, one should refuse to make an offer on any property represented by a RealtorĀ®. Surrendering to a criminal monopoly by participating in their scam is an act of collaboration.

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