By the time my buyers are ready to make an offer, we have seen all the appropriate properties in their price range and preferences. This has been the easy part mentally and the hard part physically.
Here I would like to reference one of my favorite articles: “5 Worst Questions To Ask Your Buyers Agent” which outlines all the information we don’t need cluttering up the situation.
By the time we have gotten to the offer stage, if I haven’t done so already, I will do the quantitative analysis to establish what the property is really worth. I usually give the buyer a tight range of appropriate prices with a maximum amount. Once the maximum has been reached, there is no longer any chance of my buyer overpaying for the property. I give a sigh of relief before I continue the negotiation in an attempt to get it even lower.
Here we don’t have a map to go by except the sold numbers of similar units. Determining fair market value entails a bit of math as well as some common sense. There is no formula that gives us a percentage below asking calculation. Ignore the asking. Its a wild guess compared to the numbers I get after I am done with my investigation. See my article “Dont Just Investigate Your Boston Condo, Investigate The Management Company Too”.
Once we know what the home is worth, we have all the ammunition we need to stick to our guns. The seller may balk but Buyers Agency is an alignment with truth and if the truth is that the property is worth $xxx, that’s all we are going to pay, period. Unless my buyer is willing to overpay for his own reasons, it doesn’t get a thumbs up from me until we get to fair market value.
Try to get to this agreement with the least amount of back and forth, as there are only so many offers and counter offers before either the buyer or the seller imagines they are being slighted in some way. Actually there are a plethora of negative emotions that creep in on both sides if the negotiation is taking too many offer/counter offer go arounds.
Above all, lay out a strategy with your Buyers Agent and adopt an attitude of openness and generosity. When I say generous I don’t mean paying more than what the home is worth, I mean the little courtesies about the little defects in the property. Often you can get your price if you promise not to nickle/dime the sellers for $200 here and there that may come up during inspection. Put a limit on it for sure but the gesture goes a million miles toward making the price lower and the whole purchase more enjoyable. Being nice goes a long long way!
Written by RE/MAX Destiny Accredited Buyers Agent Jeff Persons ABR – 617-512-3443
More articles by Jeff Persons ABR:
A Buyers Agent List of 5 Mission Critical Items to Check Before Buying a Condo
Boston Condo Buyers, Protect Yourself With Some Rigorous Math
How I Help “Out-Of-Towners” Find Their Spot Within Boston Real Estate and Boston Suburbs
Can I Get Away Without Paying For a Real Estate Attorney?
The Psychology of Negotiating The Price of Your Boston Home
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