Since Compromise is in the News...
December 20, 2010
All last week, the news media and the President were talking about compromise as the way to real a resolution of the extension of the unemployment insurance, the extension of the Bush tax cuts . Successful real estate agents know about negotiation and compromise. Part of their job is to help buyers and sellers understand that offers and counter offers are negotiations and that compromise may be necessary.
A seller lists the property at a price that hopefully will attract a buyer and that will be satisfactory to the seller. The buyer offers to purchase the property at a price the buyer believes the property is worth. In the current market, buyers often have spent a good deal of time online before they even make an appointment to look at a property. These buyers have educated themselves about property values, but sometimes forget that each property is unique in either condition, amenities or location.
Sellers often have not spent as much time online educating themselves. Often they have a vested interest in their homes because they have maintained and improved them during their period of ownership. Also, sellers today may remember the sales price that their neighbor obtained a few years ago and find it difficult to grasp that prices have dropped approximately 30-50% from the peak of 2005, 2006.
If a buyer has found a property that meets needs and most of the wants, being open to negotiation and ultimately compromise will be the best strategy to reach a successful purchase. If the seller receives an offer that may be considerably less than the asking price, negotiation and compromise are the best strategy for selling the property.
Except in the irrational "Boom Markets", negotiation and compromise are necessary for both the buyers and sellers to reach their goals - the purchase of a suitable home and the sale of one's property.
As was pointed out in the news this week: "Not everyone gets what they would like, but everyone gets something desirable."
All last week, the news media and the President were talking about compromise as the way to real a resolution of the extension of the unemployment insurance, the extension of the Bush tax cuts . Successful real estate agents know about negotiation and compromise. Part of their job is to help buyers and sellers understand that offers and counter offers are negotiations and that compromise may be necessary.
A seller lists the property at a price that hopefully will attract a buyer and that will be satisfactory to the seller. The buyer offers to purchase the property at a price the buyer believes the property is worth. In the current market, buyers often have spent a good deal of time online before they even make an appointment to look at a property. These buyers have educated themselves about property values, but sometimes forget that each property is unique in either condition, amenities or location.
Sellers often have not spent as much time online educating themselves. Often they have a vested interest in their homes because they have maintained and improved them during their period of ownership. Also, sellers today may remember the sales price that their neighbor obtained a few years ago and find it difficult to grasp that prices have dropped approximately 30-50% from the peak of 2005, 2006.
If a buyer has found a property that meets needs and most of the wants, being open to negotiation and ultimately compromise will be the best strategy to reach a successful purchase. If the seller receives an offer that may be considerably less than the asking price, negotiation and compromise are the best strategy for selling the property.
Except in the irrational "Boom Markets", negotiation and compromise are necessary for both the buyers and sellers to reach their goals - the purchase of a suitable home and the sale of one's property.
As was pointed out in the news this week: "Not everyone gets what they would like, but everyone gets something desirable."
posted by shirley harry at 8:12 AM
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