What are the supporting components?
- List Price. This price is most often not much more than the X dollars off MSRP in a car dealer's advertisement. Most sellers settle for less than this price.
- Condition. The property's state of repair or disrepair impacts whether a buyer is willing to make some repairs. If they are looking for move in then this moves up the hierarchy of supporting cast.
- Comparables. What has sold recently is a key supporter (especially for a buyer).
- Substitutes. This is the competition. What other properties are on the market that could fill the same need based on location, price, condition.
- Financial restrictions. Sellers have financial restrictions. These may be based on the mortgage payoff or need for a certain amount of proceeds. On the other hand, the buyer may have the restrictions of a mortgage limit or maximum price.
- Time. Sometimes the time line for a move (or even a pending foreclosure).
- Motivation. Whether buyer or seller, in order for a deal to be struck, it is most essential that the motivation of the buyer and the motivation of the seller reach agreement
All the above items play an important role in the real estate negotiation.
And the key point when it comes to negotiating the real estate deal can be any of the above. It all depends on the circumstances of the sale.
Ready to buy a home in Viera or Melbourne, Florida? Call me at 321-693-3850 or send me an email.
Both Images courtesy of Stuart Miles at FreeDigitalPhotos.net