Photos from Bryant Tutas Broker/REALTOR(R) Tutas Towne Realty, Inc
The Publix Plaza has several restaurants and other businesses for your convenience.Located in: Poinciana, FL
Hi folks. Let's talk a little bit about negotiating. Negotiating is one of the things I enjoy most about my job. I would be perfectly happy to never do anything but sit at my desk and negotiate deals over the phone.
Negotiating is an acquired skill that anyone can learn. It's one of those things that the more you do it the better you get. I also think everyone has their own way of doing it so I'm just going to try to explain what works for me and then you can tweak it or add to your current way of doing things so that it works for you and your market. And hopefully, you will be able to add some suggestions or techniques, in the comments, that will help me to improve. So here goes:
One of the first things I've learned about negotiations is that unless the offer is acceptable I always suggest to my Sellers that they counter offer. We rarely out right reject an offer. I've had offers that started out extremely low where the Buyers eventually came up. There are some Buyers who just have to get the low ball offer out of their system. It could be a cultural thing. It could be they have watched too much late night TV. Whatever the reason.....it's just an offer. Don't let the Sellers take it too personal and get upset over it. Counter it.
When I receive an offer on one of my listings, the first thing I do is call the agent and go over the offer with them. I do this for two reasons. One, I want to make sure I have the entire offer and I'm not missing an addendum that may have additional terms on it and secondly, I want to open up communications and get friendly with them. Why? Well, it's simple, they may tell me something that my Sellers and I can use while negotiating. You would be surprised at the things I've learned during the course of a conversation.
Next I call the loan officer or mortgage broker. Same strategy, ask questions and listen. You can find out quite a bit of information. But most importantly, I want to make sure the Buyers truly are qualified. You can usually tell if the LO is being truthful with you or not.
Now folks, I'm not working for the Buyer. I work for the Seller and my goal is to get as much money as I can for my Seller's property. There is nothing wrong with me asking questions. If the Buyer's side chooses to answer something they shouldn't, well that's their problem not mine.
Once I have taken these two steps, and I'm satisfied with the answers, I prepare a Net sheet and transaction outline for my Sellers. Now I'm ready to get with my Sellers and go over the offer. Initially I prefer to present the offer via Email or by phone. At this point in the negotiations I've just found it easier on the Sellers if I'm not burying them in paperwork right up front. I present the offer by using the Net sheet and transaction outline that I have prepared. I want the Sellers to concentrate on the things that are important to them not 10 pages of useless disclosures and addendums. We can go over that stuff later.
I suggest to my Sellers that they make a strong counter offer. We want the Buyer to be tempted to accept our counter. I also suggest they agree to as many minor things as they can i.e warranties, closing costs contributions, closing dates and the such. If the costs/terms are within reason, accept them. Give the Buyer the small stuff. It's easier to get a counter accepted if you are not changing or denying every little thing the Buyer is asking for. If the Buyer wants closing costs and warranties, these items are just reflecting in the counter offer price anyway......so why not leave them in?
Once the Seller has decided on a counter offer we make the changes on the contract and mark where the Buyer needs to initial. Now this step, may be a little controversial and some may not agree but here goes, my Sellers do NOT sign or initial the counter offer. I Email it to the Buyer's agent with no signatures or initials. "But Broker Bryant, why do you do that?" Well, let me tell you, I want the Buyer to commit before my Seller signs off on it. My Seller ALWAYS signs last.
We keep the property on the market and take showings and offers until the Buyer has agreed and signed and initialed everything AND put up his escrow deposit. I want my Sellers to be in a position to negotiate and accept another offer if one should come in that's better. I don't want the Buyer to sit on my Seller's counter for two days while they decide whether or not to accept it or counter it.
Also, NEVER give an ultimatum in negotiations. Don't say, "This is my Seller/Buyers final offer, take it or leave it." It slams the door shut on any further negotiations and it's not true. I can assure you, if my Seller comes back within $500, your Buyer will probably accept it. So just don't give ultimatums. Negotiate until the deal is accepted or dead and buried.
That's how I do it. Any questions or suggestions?
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Available Short Sale Training:
Bryant Tutas
Broker/Owner
Tutas Towne Realty, Inc
Licensed Florida Real Estate Broker
http://CentralFloridaShortSales.com
http://ShortSaleSuperStars.com
Are you a Florida REALTOR(R) looking for a change? Check it out.
CENTRAL FLORIDA REALTOR(r) OPPORTUNITIES
Copyright © 2009 http://www.brokerbryant.com/ | All Rights Reserved
Another successful Short Sale approval in Central Florida!
Lender: Chase
Amount owed: $129,000
Hardship: Loss of income and medical
The property was placed on the market on February 14th at $110,000. The price was slowly reduced to $85,000 on April 11th and went pending on April 18th at $87,500.
The complete Short Sale Package was submitted to Chase on April 24th.
On July 17th we were asked by Chase to reduce the Seller concessions from 6% to 3%. So we rewrote the contract at $84,500 and reduced the Seller concessions.
On August 4th the Buyer's appraisal came in at $60,000. We rewrote the contract at $60,000 and submitted to Chase with the appraisal.
We received written approval from Chase on September 1st for $60,000. The amount of the "Short" is $77,000 or 60% of the mortgage. No note or cash contribution is required of the Seller.
From contract to approval took 137 days. Not too bad for Chase.
Available Short Sale Training:
Bryant Tutas
Broker/Owner
Tutas Towne Realty, Inc
Licensed Florida Real Estate Broker
http://CentralFloridaShortSales.com
http://ShortSaleSuperStars.com
***The content of this blog is solely my opinion***
Hi folks. This current real estate market and economic climate is really taking it’s toll on people. We’ve recently heard of “Strategic Defaults” and “Delaying your foreclosure” now we have the “Walk Away” or mailing your keys back to the lender. Jingle mail is what the lenders call it.
And its spreading.
Not only are people doing this with their houses but they are also doing it with their other debts. Stop paying. Walk away.
If you want to get a better feel for people’s thought process just read through the comments on this article:
The New Consumer Debt Strategy: Just Walk Away
People are fed up. They are getting fed up with their credit cards' interest rates going up even though they have never been late on a payment.
People are fed up with corporations getting trillions of dollars in bail out money while they get squat.
People are fed up with FICO scores and the control they have over our lives:
5 People Who Check Your Credit
People are fed up with creditors and their lack of willingness to help.
People are fed up. Are you?
So walk away
And close the door
And let my life be as it was before
And I'll never never know
Just how I let you go
But there's nothing left to say
Just walk away
*** Celine Dion---Just Walk Away---Lyrics by Albert Hammond.
Available Short Sale Training:
Bryant Tutas
Broker/Owner
Tutas Towne Realty, Inc
Licensed Florida Real Estate Broker
http://CentralFloridaShortSales.com
http://ShortSaleSuperStars.com
***The content of this blog is solely my opinion***
Hi folks. Sometimes I find it hard to believe that we are 3 years into this drastic market decline. I was reading through some of my older articles this morning and found this one written in late 2006.
Today I met with another pre-foreclosure Seller. I sure am getting a lot of these lately. Anyway, I spoke with this gentleman yesterday and could tell he was really stressed out. Life had dealt him a bad hand this year, health wise, and he has found himself disabled and unable to make mortgage payments. In fact, he hasn’t made any for 5 months. His wife has just started back to work, so they are now in a position to start making payments, again. So that’s a good thing.
I’m writing this post to bring to your attention “predatory lenders” and how they prey on good people’s misfortunes. First, these folks have no other debt except their house, which has a mortgage balance of approximately $170,000, including missed payments and a prepayment penalty. Fortunately, the Lender has not started foreclosure proceedings and have not tacked on Attorney fees......yet.
When I walked in today, the first thing the Seller started telling me, was how he was working with a different Lender, to see about refinancing his house, to “help” him out and how they should have an answer for him in 3 weeks. With this is mind, he only wanted me to list the house for 3 weeks, if I could sell it before the loan came through then good, if not he would take the loan being offered. Well needless to say this did not appeal to me and my immediate thought was to just give this guy some quick info, politely bail out and leave. But I couldn’t do it. He was very stressed so I decided to get some more info from him and see if I could give him some advice.
Well to start, his house is only worth $245,000 to $250,000 max. It turns out, the lender that is willing to “help”, has told him that he can do a loan for 65% LTV based on an appraisal of $300,000! And will only charge him $10,000 in closing costs. Now if you do the math, it means the Seller will have a new loan balance of $195,000 and after paying closing costs MAY get a check for around $13,000. His current payment of $1,400, that he can’t afford, will go up to $1,500 (this is what the lender told him). Now what is wrong with this picture? Well first, how can a house appraise at $300,000 that is only worth $250,000 max? FRAUD. How can they quote him a payment of $1,500 on a high interest loan of $195,000? LIAR. How long will this Seller be able to make payments before he is in foreclosure again? SAD.
Now being the good little Realtor that I am, I pointed this stuff out to the Seller. I explained to him that they are ripping him off and if you take them up on their “help” you will be digging your hole deeper. I also explained to him that his current lender does not want to take the house back. I suggested, that if they are now in a position to start making payments, then they need to contact the current lender and negotiate a loan modification. Since he has no other debt and has a legitimate reason for his financial difficulties, there is a better than good chance, that they can work it out and keep their house. I could actually see the glimmer of hope come into their eyes. They have been buried in stress and have been getting letters from “sharks” everyday wanting to “help”. They did not know they had other options. They don’t want to move. They love their house and just want to get beyond the financial hardship.
So folks, it was a great listing appointment! I did give them some info on selling but really do not think they need or want to sell. I told them if things don’t work out with the bank, then give me a call. I will be there for them.
They both walked me out to my car. Mrs. Seller gave me a hug and asked me for a stack of business cards. And Mr. Seller was really excited and pumped, about having another option, instead of selling or refinancing.
Folks, I’ve said it before and I will say it again, “Real Estate it about people, not money” As Realtors and Lenders, we can make a difference in people’s lives. Make it your goal to listen and to give sound advise. I left this listing presentation with my sign in my car and a smile on my face. To me, that’s priceless!
Available Short Sale Training:
Bryant Tutas
Broker/Owner
Tutas Towne Realty, Inc
Licensed Florida Real Estate Broker
http://CentralFloridaShortSales.com
http://ShortSaleSuperStars.com
***The content of this blog is solely my opinion***
Would I still work Short Sales if I had it to do all over again? Absolutely!!!! And here are a few reasons why..........
My husband and I currently live just outside of Manchester, New Hampshire. We owned a house in Haines City, FL that we’d been trying to sell for over two years, but to no avail. After having it listed with three different agents with not so much as a single offer, our next option was foreclosure which would have devastated our credit! While doing a search online, I stumbled upon Bryant’s website which talked about alternatives to foreclosure, one of which was The Short Sale. Bryant Tutas saved us from having to go into foreclosure! He worked very hard for me and my husband and got the bank to accept the short sale! Less than 4 months later, from start to finish, we closed!!! Bryant was a God send to us and we would highly recommend him to anyone who wants to sell their home! – Lara and Dan
Bryant, I want to thank you for all the help you provided in a professional manner. The short sell went well considering all the negotiations you had to do with First Horizon and Etrade. The end result saved us money and I hope some of our credit rating. I would not hesitate to recommend you to anyone interested in purchasing a home or doing a short sell.
Best Regards to you in the future,
David and Sara
When we first met Bryant we were at the point of total despair and we were seriously contemplating walking away from our home, but Bryant calmed our fears and explained to us the option to do a short sale, which is a better avenue than going into forecloseure. Just a short two months later Bryant got the bank to accept an offer. Our house was sold and most importantly we saved our credit. My wife and I now have a second chance to make it right this time. Thanks Bryant for all your hard work and dedication to us.
Sincerely, Vanessa and Garry
It's a tough job but someone has to do it!!! Do yo have what it takes?
Available Short Sale Training:
Bryant Tutas
Broker/Owner
Tutas Towne Realty, Inc
Licensed Florida Real Estate Broker
http://CentralFloridaShortSales.com
http://ShortSaleSuperStars.com
***The content of this blog is solely my opinion***
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Give me a try for professional and attentive service. My 15 years experience and good "Old fashioned" hard work will fulfill your Real Estate needs. My wife is expensive and I can't afford to lose!:
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