BrokerBryant.com

Are you a Parrot or a Negotiator?

http://centralfloridashortsales.comHi Folks. Today I want to talk briefly about negotiating and I want to give you a  real life example that I hope will help you in your business. Negotiating is our job. We start by negotiating with a potential seller or buyer to get their business. They may have objections (offers) that you need to counter. You may think you are selling but what you are really doing is giving them information about you and your services so they can make a wise decision. The wise decision of course is to hire you. You are negotiating.

Then once you are hired you start negotiating with them and for them. Sometimes you are negotiating together and sometimes you are negotiating against them. Now I don't mean we are to be hostile when negotiating against them. What I mean is we are giving them the information they need to make a good decision. Buyers and Sellers hire us for our expertise. We should not just be parrots. While we want them to make the decisions it's our job to gently guide them. If we don't do this then they don't really need us do they? They just need a delivery boy. A parrot. Not an advocate. Not a negotiator. Does that make sense?

Below is a real life example from this week. The email is from me to one of my Sellers. We received an appraisal that was 12% less than the contract price. The Sellers initial response was to just place the property back on the market. It was time for me to earn my commission. In this case I needed to negotiate against my seller so that they would make a good decision based on facts....not emotions. Here goes.....

I hope this email finds you doing well. OK  I received the appraisal back late yesterday. It came in low as I feared. $79,000. The appraisal is attached. Please go through it thoroughly.
My first point of attack is to dispute the appraisal if I feel it is too low. I worked on this last night and this morning and unfortunately I can not find ANY comparable sales that would justify the selling price of $89,900. In fact my analysis comes in at exactly $79,000. I have attached the MLS Analysis and the MLS Summary.

I have also attached my CMA that was done on April 19th prior to listing the property that shows a value of $75,000 to $85,000.

So as you can clearly see the value of $79,000 is spot on.

The Buyer is getting an FHA mortgage and cannot close on this transaction at a price higher than the appraised value of $79,000. Unfortunately the FHA appraisal stays with the property for 6 months. That means that ANY buyer using FHA for the next 6 months will have to use this same appraisal UNLESS the value goes down as it will since we are in a declining market. Your house with be worth less in 90 days than it is today.

So I guess you have a decision to make. Do you adjust the price based on the appraisal and move towards closing or do you just take the property off the market and rent it? I'd suggest finding another buyer but unfortunately we will have the same issue unless they are paying cash. Cash buyers have way too many options and are the least likely buyers to pay top dollar for your property.

Could the money tied up in this property be put to better use elsewhere? Is getting out now better than risking getting even less money later? If you want to do a rental you could actually take the proceeds from this sale and purchase a much better and newer house for that purpose. The advantage would be getting a block house that is newer and would be easier to sale in the future (I'm just thinking things through).

I have also attached an addendum received from the Buyer related the price and the repairs. The only lender required repairs are the wood rot and the plumbing in the bath. Those are the only ones that would be required to get the transaction closed. The others could be negotiated and hopefully removed.

Anyway, review everything and give me a call so we can discuss.
END OF EMAIL

A couple of things I want to point out.
  1. My first paragraph is laying it out there. No need to beat around the bush. The appraisal is low and here it is.
  2. Then I'm showing them that I am on their side. I want to dispute the appraisal. I did my research and I'm giving it to them straight.
  3. I'm throwing the decision back in their court. It's their decision to make....not mine.
  4. I've given them the way forward. All they have to do is sign the addendum.
They are closing next week at the appraised price.

Now folks this would not have worked if I were just trying to sell them. That's not what I'm doing at all. I'm negotiating. They gave me their offer. "We ain't closing. Place the property back on the market". And I gave them my counter offer (my email) based on facts. Even though I was negotiating against them I was really negotiating with them and for them. The outcome is that they will have a successful sale. And that's EXACTLY what they hired me to do for them. I did my job. Do you do yours?

Do NOT be foreclosed on! Avoid foreclosure. Short Sales DO close.

Want to find out more? www.CentralFloridaShortSales.com

***I am NOT an Attorney nor do I play one on TV. Click the button below for my Bio.

The BIO for Bryant Tutas

Copyright © 2010 http://www.brokerbryant.com/ | All Rights Reserved


 

Join Our Facebook Fan Page Check Us Out On Google+ Follow Us On Twitter

 

***I am NOT an Attorney nor do I play one on TV. Click the button below for my Bio.

The BIO for Bryant Tutas

 

 Tutas Towne Realty, Inc handles Florida real estate sales, Florida short sales, Florida strategic short sales, Florida pre-foreclosure sales, Florida foreclosures in Kissimmee Florida Short Sales, Davenport Florida Short Sales, Haines City Florida Short Sales, Poinciana Florida Short Sales, Solivita Florida Short Sales,  Orlando Florida Short Sales, Celebration Florida Short Sales, Windermere Florida Short Sales. Serving all of Polk, Osceola and Orange Counties Florida. Florida Short Sale Broker. Short Sale Florida.

 Copyright © 2017 http://www.brokerbryant.com/ | All Rights Reserved

Comment balloon 46 commentsBryant Tutas • June 26 2010 04:50PM
Are you a Parrot or a Negotiator?
share
Hi Folks. Today I want to talk briefly about negotiating and I want to give you a real life example that I hope will help you in your business. Negotiating is our job. We start by negotiating with a potential seller or buyer to get their business… more
Are you just "hanging in there"? I can help.
share
Hi folks. Recently, I've read quite a few posts on ActiveRain from folks trying to decide whether or not to stay in the business. The posts don't surprise me as I have been reading those types of posts on AR since I joined back in 2006. What… more
Short Sales got you long in the face?
share
FIND A SHORT SALE AGENT BY CLICKING ON THE MAP Hi Folks. Whether you're an agent, buyer, seller or investor you really need to come check us out over at www. ShortSaleSuperStars. com Our members are the best Short Sale Professionals in… more
Real Estate is a Business. Treat it like one.
share
Earlier today I read a post byJoshua Pettus titled "I Quit! ", "I Need a Real Job! ", "I'm Broke! ", and Other Things I've Said Recently A very well written post pretty much pouring his heart out. Give it a read. … more
Increase Your Business And Income By Working Less.
share
Christine Schneider wrote an article titled "When All is Said and Done" If you haven't already take a few minutes and pop over and read it. It's basically about time management and how we can become overwhelmed if we don't take some… more
Is Your Presentation Keeping You From Being A Champion..
share
Presentation is so important. The way we present information. The way we present ourselves. The way we present our responses to objections. Being a good presenter will make your business easier and will help to build your reputation as a fair… more
Expired listings can be a gold mine. Just be sure it's not fool's…
share
Here's a secret about expired listings. Expired listings are almost ALWAYS over priced. That's why they are expired. E$pired listings are without a doubt my favorite type of lead. These Sellers have already decided to sell and they've… more
Short Sale Agent Training
share
We now have 1, 300+ members of www. ShortSaleSuperStars. com who are ready to help you master Short Sales. And if that's not enough… Need Training If you need short sale training to feel comfortable… more
Short Sales Suck and I Ain't Doin' Them!!
share
Does this sound familiar? You’ve never had to deal with a short sale in your life – until about a year ago, when foreclosures became so common it was rare that you had a seller without one. You’re not even sure you have a real grasp on what a short… more
If people don't value your time they certainly won't value your…
share
Time. Mine is valuable. Is yours? One thing that agents struggle with is being in control of their time. How often have you popped out to show property at the last minute? Or had to cancel a personal event because one of your customer/clients… more