Win-Win Contracts for Buyers and Sellers

Win-Win Contracts for Buyers and Sellers

 

Buyers and Sellers are traditionally thought of as adversaries, and while it’s true they often square off during negotiations, it’s possible for both buyers and sellers to win in one home sale! Part of the secret is to understand the other point of view so you can negotiate a winning compromise!

Home Buyers

Buyers are looking for a lower price, the home of their dreams with features important to them, a home that’s ready to occupy, a home in great condition, and a home that will be a good investment over time.

Home Sellers

Sellers are looking for a price that gives them a good profit, recognition of the value they see in their current home, an easy sale without having to do improvements or fixes, feeling that they’ve gotten the full value out of every improvement they’ve already made, and to feel that this house was a good investment and served them well.

How Realtors Negotiate Win-Win Contracts for Buyers and Sellers

Your REALTOR uses their knowledge of buyers and sellers to negotiate every day. The more you understand about how the negotiations work, the more flexible you may feel about meeting in the middle ground and allowing both parties to win.

For instance, rather than offering an opening bid so low that it can’t generate a counter-offer, your REALTOR may offer comparable homes that have recently sold in the neighborhood as proof that a lower price is reasonable. That gives sellers a reason to compromise.

Sellers may not want to replace the carpet or cracked bathroom tile at their expense as they are trying to move and close on the home in question. So, sellers may offer an “allowance” to offset the cost of new carpet. This provides them with more time, but acknowledges to the buyer that the carpet is getting older.

Perhaps the buyers are in a hurry to move in, but the sellers’ new home isn’t ready yet. The parties can close on the home and the sellers may agree to rent another home for a month until their new home is ready, or the buyers may agree to rent the home back to the sellers.  There are many solutions that can be found with a Realtor who is willing to dig deep and find the key negotiating points.

Take a deep breath and consider how you’ll feel when it’s your turn on the other side of the deal. Then get creative with your real estate professional to find solutions that create a win for both parties!

What is a Short Sale?

Columbus Oh Short Sale infoSimply put, a short sale is a home sale that is short of funds.

The homeowner is behind on their mortgage payments. There could be many reasons: loss of a job, bankruptcy, medical bills, etc. In today’s world he/she often can’t afford to sell the home because the home’s value is less than the mortgage payoff.

So, said homeowner goes to the lender and asks permission to sell the home for an amount that will not fulfill the payoff amount. The bank has to agree to this, since the bank will be taking a loss once the home is sold.

The good/bad for sellers are they can get out of a bad financial situation, but they will have a definite drop in their credit score. The bank wins because they get most of their money and do not have to foreclose and take over ownership of the property. A home buyer wins by buying a home that has a great selling price.

There are several things a savvy home buyer needs to know about a short sale:

  1. The property is sold ‘as-is’- any repairs or problems becomes the buyer’s future headache.
  2. These transactions are often long and delayed. Anticipate a roller-coaster ride to closing.
  3. While the seller’s bank has agreed to consider a short sale, this is frequently only a verbal discussion and there’s no guarantee the bank will agree to your price. (See number #2 above.) Check to see if the seller/lender has completed their short sale process and things are in writing.
  4. If there are two mortgages involved (and possibly two lenders), double the issues/process times two.

Since the flood of short sale homes (that started in 2009) has abated, many kinks have been worked out and the process has become smoother. Talk to your Columbus Team Realtor and lender, who can offer further advice and details to assure a smooth transaction.

Sellers: need to know more about the short sale process? Follow that link and call the Columbus Team today at 614.888.6100. We’re experts at handling home sales that are ‘short of funds’ in today’s market! It’s in your best interest to work with a real estate agent who has extensive experience with short sales.