Jim Valentine on Real Estate
The reasons for accepting an offer are many as are the reasons for declining an offer. When do you know what is appropriate for your circumstances? You will know if you’ve established your wants and needs lists appropriately.
With those in place you will know what it is that you want to achieve. That enables you to determine if the offer will accomplish what you are looking to do. Many people get obsessed with price when negotiating. That is part of the package.
Is it priced right for its physical condition and market conditions? Is the market changing for some reason, i.e. — recent election, public perception?
Is the price commensurate to the rest of the terms? If you are asking for a long escrow or for the owner to finance part of the purchase price, it is a bit much to beat the price down. Generally, if all cash, few conditions and a short escrow, you can be aggressive in price.
Understand, however, in a competitive market, or a special property, sometimes your cash merely gives you a better opportunity to become the buyer of the property. Motivation can be more influential than price to a decision. If a seller has a note coming due, a place to be, or simply wants out of the property ownership, the influence of price rapidly diminishes.
They will accept less to get those other wants or needs satisfied than to try to squeeze the last dollar from the sale. Divorces and other ownership breakups can get tricky. One party might be in more of a dire financial situation than the other.
That happens more often in investment partnership breakups. Some soon-to-be ex-spouses play rough to wreak havoc with their soon-to-be ex, especially if the ex has moved on into a new relationship. This can be taken to such an extreme that it can only be resolved in the courtroom, not the “closing table.” Red flag alert here.
If you become aware that you are in a transaction with a divorcing or divorced couple, make sure you have everybody’s signature on all the documents. Additionally, if one has already re-married be sure to get a quit-claim deed from the new spouse early in the process so getting title insurance doesn’t become a problem later.
Motivation comes from many aspects of life. Life circumstances can be having to move to care for a family member. Financial motivation can come from a new job, or the loss of a job, good and bad reasons.
Emotional elements can be moving closer to family, or to where you recreate, i.e. — near public lands. It can also be moving up or down to get a home that “fits” better. Opportunity can create motivation for a property to be sold or purchased, i.e. — great price from a family member or friend on a replacement property.
It is important that you understand the motivation of the other side of the transaction to make for the smoothest possible transaction and to limit the exposure to problems that can cause delays, or worse yet, the cancellation of the escrow.
Probe for your motivating factors and those of the other side. When you understand the motivators, and are clear with your wants and needs, the decision to buy or sell will be as easy as falling off a log. It will make sense, and you will be comfortable doing it.
You will likely find price to be a factor in the decision process, but not the deciding factor in every case. Buying a home can be a complex process that you can simplify with some thinking and planning.
When you have a plan together, you and your agent can work together to execute it, and you will be comfortable and confident all along the way.
When it comes to choosing professionals to assist you with your Real Estate needs… Experience is Priceless! Jim Valentine, License No. BS-03481, RE/MAX Gold Carson Valley, 775-781-3704, dpwtigers@hotmail.com.