The Art of Negotiation

When it comes to real estate matters, the 3 most important aspects of an effective negotiation are:

1. Information
2. Preparation
3. Realism

Information--Once you have found a home you are prepared to buy, the first step in your process of negotiation is to determine the fair value for the home. As mentioned in earlier correspondence, we can be of great help here. We can develop a Home Price Evaluation. An HPE will show exactly what properties similar to the one in which you have an interest have sold for.

• Condition also has much to do with the ultimate selling price. Does the home to which you have an interest shine above or fall below the others that have sold?
• Extra Amenities can be a factor.
• Motivation--if possible, we'll find out the sellers reason for selling

Preparation--Just having the right information is not enough.

• The most important factor is your emotional frame of mind. Keep your excitement in check or you will lose the value of the information you have.
• Your Financial Frame of Mind - your power here comes from being pre-qualified and pre-approved for a mortgage.
• Set a realistic limit and then stick to it. You cannot be afraid to let it go.
• Plan your work and work your plan. Organize your information and have it quickly available. We will be with you every step of the way.

Realism

• When it comes to dealing with sellers and pride of ownership, a low ball offer on a well priced home often hinders further negotiations. Negotiations will most likely be stopped, and if re-opened, the seller may stand on list price.
• In Houston, most homes that sell are within 96%-98% of their list price. This varies according to neighborhood. For best results, we will look at the most recently sold homes in the neighborhood and determine the range for the subject property.
• I will also tell you if you are making an unrealistic offer on a home that meets your needs and is priced correctly. In Houston, many multiple offers occur, causing buyers to overreact. We do not want the home to end up costing more than it would with a realistic offer.

I hope this has been helpful and I look forward to working with you. Please feel free to contact me at anytime, 281-948-7042.