My mom was a Realtor. She was a top producer in the town we lived in. She began that career when I was in high school. Watching her and working for her formed my desire to follow in her footsteps. I believe my understanding of the skill for negotiating came from her. Mom and Dad were married for 63 years and they raised seven kids, she had to know a thing or two about negotiating.
Here is one of my favorite stories of when I watched Mom make a deal. Now this is not a real estate deal it just illustrates the simple graceful way my Mom knew how to negotiate with people. We were at a consignment store and she spotted a dresser and a night stand she liked. They were priced at $25 each. She offered the clerk $40 for both. The clerk said, "No”, she needed $25 for each. Mom kept looking and began chatting with the woman. Then Mom said, “I know, how about I give you $20 for each.” The woman replied, “Great!” Mom gave her two $20’s and we loaded the two pieces of furniture. When we were driving away I looked at Mom and said, “Mom, you offered $40 both times ?!?” Mom replied, “You just need to know how to make the offer the right way.” Simple and graceful negotiations.
During this strong sellers’ market negotiating skills and knowledge of the contracts are incredibly important. When presenting a Buyers offer to a listing agent, we know we are going up against other offers. Ray and I make sure we have all the pieces and parts, addenda and riders, pre-approval letter or proof of funds included with the offer. We want our Buyer’s offer to be taken seriously. When the listing agent sits down with the Seller to go over three, five, or twelve offers the ones that are complete will hold more weight. We honestly believe it would be a disservice to a customer to show them homes when they do not have their pre-approval letter or their Proof of Funds letter from their banker. Why is it a disservice? Because if they find the ONE there isn’t time to wait on a banker or a lender. By the time the buyer receives the documentation that home will be under contract. When we put together an offer for a Buyer, our goal is to make sure the Seller has a complete offer package to look over.
Then on the flip side, Sellers, they require a listing agent who understands the contracts. Most of Florida uses two different real estate purchase agreements. One is called the As-Is and the other is called the Standard. Ray and I frequently attend continuing education courses to get the in-depth training on the use of both types of purchase agreements. What is becoming the new normal piece is the Escalation Addendum. Picture this true market scenario –your seller has received six offers. Several are cash, several are financed. Some have proof of funds or their pre-approval letter, some do not. The closing dates vary, some offer with the escalation addendum, some must sell their other house first, some do want the washer and dryer, others do not, some put down huge escrow, others put a minimum, some are written on the As-Is purchase agreement, others on the Standard purchase agreement, some include all the supporting addenda and riders, others do not. I think you get the point, there are so many details to review and summarize. Ray and I take the time to sit down with our Sellers and go over ALL the nuances of each of the offers, explain their estimated net, explain the downside and the upside of each offer. Then allow the Seller time to make their decision. It is a complicated process.
The market is moving fast. If you are thinking of selling, please give us a call and let’s chat about what it looks like to sell in this intensely hot seller market. We have the experience and knowledge you need.
If you are wanting to buy right now—don’t worry you just need to call us, we understand the market and can prepare you for it.
As my Mom said “You just need to know how to make the offer the right way.”
Here are a few articles that I think you will find interesting. They go into explanation of a couple of the questions we get asked the most...
Check out the current market for the "average home". The "average home" for this search is: 3 bedrooms, 2 baths, pool, price point $250k-to $400,000, square feet 1500-2200.
Sarasota County: Active - only 14 homes, Under contract in last 30 days- 51, CLOSED in the last 30 days 61. Average days on the market 9!!
Charlotte County: Active - only 19 homes, Under contract in last 30 days- 92!, CLOSED in the last 30 days 74! Average days on the market 12
Manatee County:Active - only 11 homes, Under contract in last 30 days- 31, CLOSED in the last 30 days 29. Average days on the market 5!!