Real Estate: When Price Fails, Negotiate

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WHILE WAITING IN LINE AT THE POST OFFICE A CONVERSATION WAS OVERHEARD between two men who evidently knew each other. The younger man (who we’ll designate as “Young”) said he and his wife were looking to buy a home since the current market appeared to present an optimal time for the lowest home prices. He said they located a great home in a terrific neighborhood with a nearby playground for the kids but lamented the price was still too high for their income.

The older fellow asked if Young made an offer at a price he and his wife could afford, to which Young said “No,” explaining the real estate agent told them the homeowner might entertain an offer but Young declined to do so because any offer he made would have been significantly below the asking price and rejected. Really? How would Young know his offer would be rejected in the absence of submitting it?  Couldn’t there have been a chance the offer would be accepted … or that a tolerable counter offer may be presented? Of course!

Yet, walking away without making an offer guaranteed Young would have no chance to purchase that home. Would it not have been better to consult with his attorney and accountant to fashion then submit an offer? We think so. After all, the worst that could have happened was a rejection.

Recently we’ve heard real estate salespeople mention the reluctance of potential buyers to make an offer on a property that appeals to them, preferring instead to walk away. But why?  Maybe there are theories about buyer resistance to make an offer or negotiate a price, though based on what we’ve seen and heard such reluctance seems to stem from the evaporating art of disciplined and cool-headed negotiation.

Perhaps parties to potential transactions should be reminded rejection of an offer should not be emotionally digested. A better reaction would be examining reasons for the rejection and seeing if another offer is possible as an evolving opportunity that is part of the back- and- forth process from which a seller wants as much money for his/ her property as possible, while a buyer wants the best possible bargain. Both positions are valid and its constructive old-fashioned negotiation that builds a bridge between them.

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Need consulting, coaching or problem troubleshooting regarding other single-family or multi-family housing issues? We’ll be pleased to help you. Visit us at the Inhouse Corporation website or contact us at inhouseco@aol.com

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Blog Terms of Use and Disclaimer: The purpose of this blog is to promote awareness and general discussion of the presented topic. Use of this blog shall be the reader’s agreement this blog is not a substitute for the advice of a qualified professional and each action that may be taken shall be under the specific guidance and oversight and/or performance of a professional qualified in the subject matter. If you have a question or want assistance with a featured or related matter please contact us at InhouseCo@aol.com (include the blog article title on the subject line). Links, references and credits in this blog are for convenience only and are not endorsements by the author or Inhouse Corporation. Statements and/or opinions of guest authors may or may not reflect those of Inhouse Corporation.

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One Response to “Real Estate: When Price Fails, Negotiate”

  1. USHUD Says:

    USHUD

    Real Estate: When Price Fails, Negotiate | Inhouse Corporation Insights

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