You’re not buying a car

NegotiationsWe all know someone like him, or her.

The one who lives by the guiding principle that you should never pay the asking price for anything.  That “everything’s negotiable” and the seller will always accept less … eventually.

While this trait might be useful in a car dealership or jewelry store, in the real estate market it can sometimes be counterproductive and actually cost you money – a lot of money.

Here’s what I mean.  In just about every other marketplace, the asking price, or sales price, is either the beginning or the end of negotiations.  You go to the mall, you see something you like, you pay the sticker price, its yours.   There is no negotiating.  For people selling on Craigslist, the asking price is just the beginning of negotiations.  You might get it for less, if no one else offers more.

In real estate however, the listed price is essentially meaningless.  All that matters is the market value.

If the home is listed over market value, there will likely be no offers until the price comes down, so there is room for negotiation.  But if the home is priced at or below market value, there will be multiple offers (at full price), and the seller will not agree to less in almost every circumstance.

The problem is that far too many homebuyers – and investors – get hung up on the listing price.  Even if the home is listed below market value, they still want to come in low with their offer, believing that the listed price is the start of negotiations.  Instead, it’s the end.  The offer is rejected outright, and the home is sold to someone else.

If you buy a home that is listed below market value, you make money, you gain equity right away, even if you pay more than asking price.  By ignoring the market value and focusing on the listing price, putting in a low-ball offer, you just cost yourself money.  Worse, if you insist on only offering less than the listing price, the only homes you might be able to get will be homes that are listed over market value.  In other words, you might be able to get sellers that are over-pricing their home to come down closer to market value, but you’ll hardly ever get one for well below.

So when buying a house, always remember: It’s doesn’t matter what its listed for, only what its worth.

And if you want to know what your home is worth, click here.

Making home buying easy for first-time buyers

I was meeting with a new first time home buying couple and that had a lot of questions which I was glad to answer. They were very concerned with the process and how long it took and all they needed to know.

First I told them I appreciated to concern and the thirst for knowledge. A major part of my job is to help educate the home buyer or home seller.

But I also want to stress that this process should not be that difficult for the client. There will be some trials, but if your agent representing you is doing there job your difficulties should be minimal.

Our tag line is customer service is our purpose. What that means is we want to provide you with a customer service experience that leaves you doing minimum work. We want to provide a concierge level of experience where we take care of everything possible so there is little stress and concerns for you.

Buying a home and thinking of investing that much money is stressful enough. The actual transaction itself should not add to that stress level.

So if you are looking for someone to make your home buying experience easier please email me or call us at 480-389-5319.

In search of the smokin’ deal

East Valley Team member Kristin LaVanway talks about how East Valley buyers need to be realistic on their offers.

We get a lot of off-the-wall questions about Phoenix real estate…like this one. Buyers are still surprised when sellers don’t kneel down in gratitude when an offer – especially a CASH offer – is made. Buyers are not calling the shots in this market. Good homes are selling and selling fast – often at or even above the asking price.

East Valley short sale basic training

East Valley Team member Kristin LaVanway talks about how East Valley short sale buyers need to be more serious in their offers.

The East Valley Team is taking a stand. When a buyer submits an offer on a short sale – it is hazardous to everyone’s health (financially speaking) if they do not intent to execute that contract fully.

Gone are the days of putting lots of short sale offers in to see what sticks, Banks are digging and making the process much harder so the message from the East Valley Team is this: You better be serious if you put an offer in on one of our short sale listings.