As promised by all of our friends who want to purchase property in the area but waited til the end of season to get the best deal, paper is beginning to fly...(sellers are starting to get offers).  We're not seeing record sales by no means but we have seen a slight bump in pending sales (which was expected) but probably not the bump we were all hoping we'd see.  My clients at 25830 Creekbend Dr. were one of those who actually saw paper last weekend but unfortunately could not come to terms.  This was the first offer they saw in nearly a year under my watch despite the fact that they are one of the least expensive properties on the market (per sq.ft.) with Gulf access.  The exposure is there, the buying prospect base has not been which is also reflected in the fact that none of their direct competition has gone under contract either.  So isn't it true that if the "Seller Wants To Sell and the Buyer Wants To Buy" then we should have a solid contract?  The answer to the million dollar question is....unfortunately no. 

So here are the possible reasons why:

In this case scenario it just so happens that the sellers on this property, much like a large majority of the other properties listed at this time do not NEED to sell...they WANT to sell and yes there is a HUGE difference.  Buyers who expect to come to the table with really low offers and get their price on the first round of negotiations are being absolutely foolish.  Just as sellers are expected to come down off list price, buyers are expected to come up from their original offer.  It shows flexibility and good will.  I'm not saying that all sellers will not accept the first offer but it is rare unless the offer was written intelligently to begin with.  You are shooting for an unrealistic goal if you expect your first lowball offer to be accepted.  So it should be considered a bonus not an expectation.  Not to mention...in the real estate world at least in this market...it shows lack of sophistication on the buyer's part and possibly a lack of intelligence on their agents part.  The seller typically thinks you can't afford it and had no business placing the offer to begin with so there is hardly even heartbreak at the thought of not seeing the offer go hard.  Even more so, it's a colossal waste of everybody's time.  Here's even another factor rarely discussed.  It becomes a point for the seller after that buyer is long gone that maybe they could've gone even further down in pricing yet were unwilling with this buyer.  So the key is to begin with the end in mind.  If you want the house, don't over pay but fully commit and negotiate intelligently.  How do you do that?  Here are some tips.

Tips to negotiating in this market. 

1.  Be true to yourself, your agent and the other parties on the contract.  I showed a home last week in Port Royal to a couple.  She LOVED it, he didn't really want to spend that much.  He could've pulled the trigger but he didn't really want to.  At one point she said something to the effect of, "boy, I better calm down because if the agent figures out how much I really love this place, I'll be in big trouble" (by her husband).  Folks, it doesn't matter how much you like it.  If you're not willing to spend the full amount, you're not.  Especially in the luxury market.  People don't just run around throwing their money all over the place just because they can...we know that and if you're working with a smart agent, they're going to shoot straight with the other agent involved or directly with the other party (if there's only one agent).  To be mysterious in many cases is just playing a game that doesn't really make any sense.  I've seen sellers get excited about selling to buyers because they know they really want the property...sounds silly I know but I've seen it happen. 

2.  Remember The Objective.  If you're the type of buyer who is only going to feel good about a deal if you got the seller significantly off their price then pay attention to the market at least.  The odds of you getting the best priced property at a huge discount is probably not going to happen.  If value is your goal the difference between the list price and the sales price is not the kill.   

3.  Have Your Agent Do Their Homework.  There is a real magic when working with intelligent agents.  Have your agent call the other agent and let them know what your true intentions are before you start directing goofy offers.  As mentioned before, some sellers and some agents can make it work, some can't and then there's a portion that won't.  I can't tell you how many calls I've made or calls that were placed to me that were just a temperature check.  "Hey, are we going to freak your people out if we put an offer in and ask for the furniture even though you're not offering it?"  It goes both ways and lots of deals are made this way. 

4.  Work With Intelligence.  If your intelligent agent you hired tells you that certain terms you want to offer probably won't work guess what...this isn't the 70's anymore where they're trying to make it easier on themselves and the other party.  If you're asking for uncustomary terms it really can kill the deal.  An example is earnest money expectations.  Years ago when I sold real estate in Texas earnest money meant nothing.  It was so unusual that the seller would ever get it, that there was no perceived value in it.  Here if you come to the table with a lousy offer and no earnest money...good luck with that.  Earnest money means ALOT down here and truly reflects the seriousness and capability of your offer. 

For more negotiating tips or assistance with your real estate interests call Shannon Lefevre - Smart Girl, Great Results!
Questions or comments regarding this blog?  Email Shannon