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Monday, March 14, 2016

Sellers Always Negotiate.

My question was simple..."Why do you want to offer such a low amount?"  The response...sellers always negotiate.

When it comes to negotiation, regardless of market, the truth is
  • Some sellers will not negotiate. 
  • Not every buyer will negotiate. 
The Brevard County, Florida residential real estate market is a sellers market.  In simple terms this just means there are more buyers than sellers.  Not too many years ago it was the opposite. 

So buyers should expect sellers to use the market conditions to their advantage by pricing high and waiting out poor offers that do not meet their goals or expectations.

Understand yourself, first.  When it comes to making an offer it is critical to have an understanding of your own goals, timeline and circumstances.   No matter how brilliant your real estate agent is unless they actually know the motivation of the seller they have no solid basis to know how they will respond to any offer.

From the seller perspective it is much similar.  Know your own motivation  when responding to an offer.

So what can a buyer do in a seller's market?  First, an understanding of the local market is critical.  This is best obtained by working with a local real estate agent - not the seller's agent.    There is no inside track gained by attempting to use the seller's agent.  Your real estate agent can offer advice based on the competition and your goals.

So sellers have the leverage with no worries, right? No... the principle of substitution explains it very well...a buyer will pay no more for a property than the cost of an equally desirable (and comparable) alternative property.

When it comes to real estate offers/counter-offers I have observed that low-ball offers and above market demands usually result in a non-deal.  I have also found the best approach is a "lets talk offer and not a get lost offer!"

Still, it all comes down to the motivation of the buyer and seller.    

Fortunately most can reach agreement and sales happen.  Still, submit and respond to offers with the knowledge that not all negotiate.

Ready to sell or buy a home in Melbourne, Florida?  Call or text me at 321-693-3850 if I can help as your #VieraRealtor .

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