I think you will agree, for most Americans, negotiation is not a usual practice. It is unusual in American society. This is not true in all cultures but the "norm" in American society is to see the price and either buy the item or not buy the item.
Suddenly, you find yourself buying a car or an antique or an airplane or a house. No one is going to be offended if you make an offer. Imagine this. Mr. Realtor takes you out to see a house priced at $200,000. Your interest level is zero. Your interest level is zero because the house needs a lot of work done to it. You are not really Mr. Fixit. You tell Mr. Realtor to show you some other houses. The next day Mr. Realtor calls you back and tells you that the $200.000 house has had a huge price reduction. The new price is $100,000. Would you be interested now? Most likely, your answer is yes. Everything, everything, everything is relative to price. Your interest is zero at $200,000. Your interest is a "ten" at $100,000. That makes sense. Don't you agree.
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| Ron Climer says,"Make an offer. You will be glad you did. " |
Here is what does not make sense to me. When Mr. Buyer saw the house priced at $200,000, why doesn't he ask himself, " At what price would I like this house?" I know the answer to my own question. Most Americans just don't think that way. Negotiation is not part of our culture. I have written this article to encourage you to make an offer. There are many books and courses about how to negotiate better. It always starts with making an offer. Mr. Buyer says to Mr. Seller,"I don't want your house for $200,000. I will buy it for $170,000." There are a million variables that effect Mr. Seller's decision. It all starts with an offer. If you, Mr. Buyer, are thinking, "I will buy this for $X", tell the seller. Make your thoughts known to the other party. You never know. Mr. Seller might just say OK.
Making an offer is the most powerful move that you can make in the buying process. If Mr. Buyer looks and just goes away, Mr. Seller can't know what Mr. Buyer is thinking. Make an offer. Let Mr. Seller know that the price is the only problem. You like his house. You like his neighborhood. You like him. The only problem is the price. Let Mr. Seller know what you are thinking.
Often, buyers go to a lot of trouble to look at an item that a seller has for sale. A smart seller knows that that is part of the negotiation. If a buyer drives from Jacksonville, Florida to Hendersonville, North Carolina to look at a house or an antique car, they must be interested. Let,s assumee the seller is asking $20,000 for an antique car. Mr. Buyer drove 300 miles just to look at it. Mr Buyer decides he is willing to pay $15,000. Wouldn't Mr. Buyer be foolish if he did not offer the $15,000? He already has the expense and aggravation of the trip invested. Make an offer.
If negotiation is not something that you do often, this article is not going to turn you into a master negotiator. Just remember this. If you would buy it at any price, tell the seller. Believe me. You will be surprised many times. You have already done the hard part. You have gone to look at the item.
One way to come to understand this is to go to an auction. At an auction, the items that are for sale are are displayed for the bidders to inspect before the auction. There are no prices. You see a widget that you would like to own if you can buy it for $100. The bidding starts at $20,$30, $40, $50, When the bidding gets to $100, you shut up. You are amazed that the widget sold for $200. OR sometimes it happens this way. You see the widget at the auction. You like it if you can get it for $100. The bidding starts. When the bidding gets to $40, everyone else shuts up. You get the widget for $40. You don't have to go to many auctions to have both of these experiences.
When you are buying one on one from a seller, there are only two bidders, you and him. Sometimes Mr. Seller imagines that there is a third bidder. That would be Mr. Next Buyer. You are looking at Mr. Seller's house. He has bid (offered for sale at) $200,000. You offer him $170,000. He can take your offer. He can wait for Mr. Imaginary Next Buyer. Those are his only two choices. If he takes your $170,000 offer, every body wins. You have a house. Two Realtors have a commission. Mr. Seller's house is SOLD. Every one is better off. You are not out looking at houses. Mr. Seller is not hassling himself selling his house. MAKE AN OFFER. It is good for everyone.
Sometimes when you make an offer, the seller accepts your offer because of the mood he is in at the moment. He would not have accepted it yesterday. He would not accept it tomorrow. He accepts it today. Yesterday I was preparing a real estate market analysis for a seller that owned a vacant lot in a neighborhood in Hendersonville, North Carolina . When a Realtor looks in the Multiple Listing Service to see what houses or lots have sold for, the MLS gives us the list price and the sold price. Most of the prices in this neighborhood were: Listed for $52,000 sold for $48,500 Listed for $45,000 sold for $41,000 Listed for $55,000 sold for $49,000 Ho Hum That is rather usual . There was one lot that Listed for $65,000 sold for $10,000. I suspect that seller was having a bad day the day he accepted that offer. Does that happen? Yes, it does. MAKE AN OFFER
In conclusion let me say this. If you take the trouble to look at something, make an offer. In real estate, your Realtor may or may not have the sales skills to encourage you to make an offer. Go ahead and do it anyway. Suggest to your Realtor," I would like to offer $170,000 for this house." No one including the seller knows what the seller is thinking or what Mr. Seller will accept. MAKE AN OFFER You will be glad you did. www.ronclimer.com
I almost forgot to mention this. If you need a Realtor to help you buy or sell real estate anywhere near Hendersonville, North Carolina, Call me, Ron Climer at 828 755 6996.
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