I put an offer in on a property in a downward trending market today. I included my comps showing that the price that we offered is fair. It's not a "Seriously? That's the Offer?" offer. It does have a basis in reality. The reality is that prices are eroding in the area, and there are a ton (a TON) of short sales and bank owned properties lingering on the market. Prices are going to continue to erode until we get rid of this inventory. The Seller was only willing to come down a bit off the asking price. My Buyer wasn't willing to go up more than a smidge because our guts are telling us we can pick something up in the next couple months at his target price.
The other agent was great. He told me what the Seller's current bottom line was without arguing the comps with a "We have vinyl siding - this comp has asbestos! yadda, yadda, yadda..." I told him my Buyer wasn't going to move up in price without the "That house is a piece of crap! Look at the foreclosures on the market...they're going to regret it...yadda, yadda, yadda..."
And so, the deal has died. Not in a clash of ego and tears. Not in a desperate back and forth of negotiating increments of $1,000. It simply died because the Seller was willing to take X, and my Buyer was willing to pay Y, and those two lines didn't intersect at any point.
So, how is a deal made? A deal is made when a Seller is willing to take what a Buyer is willing to pay. Sometimes, this puts everyone in a "Happy Place." Sometimes the deal dies only to be resurrected another day. But, at the end of the day, it comes down to this:
A deal is made when a Seller is willing to accept what a Buyer is willing to pay.
That's it. It's really pretty simple.
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And then of course up here there's always the snow blower. No deal is ever finished until who gets it is resolved.
best
The sellers had their day. It is time that the buyers have theirs. You summed it up perfectly! The difference is that during the sellers day the to buyers were willing pay more. It IS that simple.
Gary - All the better reason not infuse the negotiations with ego and drama. You never know when/if/how the deal may live to see another day.
Richard - The shift in dynamics is interesting. And, I think, healthy for the market as a whole. It's certainly changed the tone of a lot of negotiations, hasn't it?
Kelly- "Posturing" - the PERFECT way to put it. It's completely unnecessary and counterproductive. All it does is fan the flames of the negotiations.
Thanks for stopping by everyone!
Heather - I'm with Joe on this. I also think that you handled the negotiations with the other Realtor in a professional manner and over time if the seller truly wants to sell they'll come down in price to what the market will bare. And your clients will find something else that fits their price.
Paul - LOL. I decided not to practice my deadly art of nagging on the other party. I like to save it for life or death situations. Your duct tape will surely be an option for the future :)
Jessica and Tom - It actually went under agreement, so perhaps the Seller's got their price. And, Good for Them! My Buyer just didn't like it enough to pay that. Again, no harm no foul.
Thanks for stopping by everyome!