Negotiating--Powerful Representation To Get What You Need

"I want what I want, and when I want it!" This is an unrealistic attitude to have when buying and selling homes. Buyers and Sellers need to remain open to winning some battles and losing others.

Negotiating is defined as “the art of influencing or persuading others.” It is a essential skill for a Realtor® who is representing Buyers and Sellers. However, it is important to point out that negotiating is not about taking unfair advantage of someone and should never involve dishonest or unethical behavior. In persuading or influencing others, our goal is to create genuine win-win outcomes by helping people see where they do, in fact, share common ground and can benefit from a give-and-take arrangement that advances their mutual interests.

A suave Realtor®, who understands your needs and is skilled at negotiating, acts as a buffer between you and the other party. They know where you stand and look out for your needs. While there is give, there is also take. They understand how to negotiate and work to get the majority of your needs met. By the end of the transaction, both parties should feel somewhat satisfied not angry and bitter.

Although, quite often the market has a bearing on the outcome of the negotiations. For example, if you are a buyer competing with multiple offers you may have to pay a bit more than you wanted to for the property and accept more imperfections than you hoped for. On the other hand, if you are a seller and haven't had an offer in 2 months, you may take less for the property than you expected. A Realtor® who understands your position will educate you on what is reasonable and unreasonable in the negotiations. However, they won't be afraid to ask for the unreasonable if it is in your best interest.

While, the buyer or seller may be adamant about their stand and they seem to be winning all the battles. If the market is leaning in their favor, you could stand firm and lose the transaction all together or reluctantly compromise one more time.
Sometimes, understanding that by getting over these bumps ultimately leads to your goal, the sale. Don't judge the method, but judge the results.

Price Wars and Beauty Contests--8 Simple Tips to Win!

Buying a home is an emotional decision. Buyers are making multiple offers on homes that may need new plumbing or furnaces; but the floors are swept, the bathrooms shine, the fragrance of muffins linger in the kitchen, the beds are wrinkle free made with simple but stylish bed spreads, light flows through clean windows, and the counters are clutter free with a few designer touches.

While lower prices and good photos on the internet are getting people into the home, the Sellers who stage their home with a few simple moves will appeal to all the Buyer's senses and will get multiple offers. Buyers driven by their desire to have that particular home are getting into bidding wars. The sellers are ending up with thousands of dollars above where they started.

8 Simple Tips:

1. Clean up the yard. Weed and cut the grass. At the last minute, add a few plants that are in bloom for color.
2. Remove Clutter. Removing clutter makes the rooms feel bigger.
3. Deep cleaning is a must. Floorings must be cleaned. Kitchens and bathrooms must sparkle. Kitchen counters tops must be cleared. Trashcans must be emptied. Remove litter boxes to the garage or clean everyday to reduce any odors.
4. Simple Stylish Decorating. Open up the room by reducing excessive furniture. Freshen up the home with neutral colored paint. Remove all personal items and photos. Set a beautiful inviting table. Play soft music for atmosphere. More decorating ideas can be found on Better Homes and Gardens (www.bhg.com).
5. Let the Sun Shine in. Open window blinds and drapes or turn on lights for a bright cheery home.
6. Simple Repairs Can Make a Huge Difference. Loose knobs, dripping faucets, burned out light bulbs, sticking doors and windows, warped cabinet drawers and other minor flaws detract from the home value. Have them fixed.
7. Safety. Keep stairways clear. Remove throw rugs on slippery surfaces. Tack down any loose carpets or protruding boards. Dogs must be kenneled or restrained.
8. Clear Out Closets. Neat, well-organized closets make them look bigger and show that space is ample.

With the advice of an experienced Realtor®, who can give you more staging tips, will make all the difference in how easily and quickly you sell your home--to win the beauty contest!

--Virginia Hall

Go Green, Save Green

You don’t have to build from scratch to have a greener home. These quick and easy home fixes will shrink your consumption and your monthly bills.

• Rate it. Look for Energy Star-rated products. This government program helps people make energy-efficient choices, which can lead to savings of up to a third of energy costs.


• Switch the lights. Compact fluorescent light bulbs use up to 75 percent less energy than traditional bulbs. Replace them in highly used fixtures such as porch lights, bathroom vanities and office lamps.


• Go with the flow. Use low-flow showerheads and consider installing low-flow toilets to reduce water usage and save on water-heating costs.


• Plug in, turn off. Use a power strip for your home office or home entertainment center. Even in standby mode, consumer electronics — which account for 15 percent of household electricity — use a little juice, so turn the power strip off when you can.


• Cool it. Turn the water temperature for your washing machine or dishwasher down to 120º F to cut water-heating energy consumption.


• Seal it. Search for hidden air leaks in your attic, basement or crawl space, and seal them with caulk, spray foam or weather stripping. Home sealing can be an inexpensive way to cut energy consumption by up to 10 percent.
  

Sources: www.energystar.gov, http://www.eere.energy.gov/; http://www.crs.com/magazine/your_home_newsletter.shtml

If Houses Could Scream!

"What happened here?" my buyer gasped.

I was in shock. What had happened since making an offer on the home?

It had been 6 weeks since he had made the offer on this home, that was being sold as a short sale. The sellers had to sell the home as the result of a divorce, and owed more on the home than it would be sold for. The home was older and needed some cleaning, a kitchen and bathroom update, but over all the 3 bedroom house had potential.

As we walked into the house, the seller passed us leaving for work muttering something about trouble with his child who had done some damage.

However, after examining the home, it was evident that the seller had done the dastardly deed. He had removed the dishwasher, the oven, the front bathroom newer bathtub doors. In addition, two bedroom doors, some kitchen cabinet doors were missing. As we walked down the hall I noticed the matching painted wood paneling on the walls was missing and now there was exposed damaged drywall with a layer of black tar down the middle. The original hardwood floors had a long scrapes and gouges where the oven had been drug through the living room to the backyard.

While we had a contract that the seller had violated, what is the point of suing someone who is in the process of losing everything. I could have renegotiated the price down for my Buyer, but where would the angry seller stop before the end of escrow. With the damage he did in 24 hours since the offer had been accepted, would the house still be standing in the next 45 days? Unfortunately, the Seller's actions, spoke loud and clear, "That if I couldn't have it, no one would.

Since we were expecting the home inspector, any minute, my buyer had to make a decision. While I hated to see him lose the house that he had hunted months for and waited patiently for the bank to approve the offer, but there was nothing else he could do. I knew he couldn't afford to rebuild the nice little home he had bought. Not to mention, would he be able to get lending on it. While we had a contract, you can't sue someone who has nothing to lose. Much to his despair, the Buyer was forced to cancel his contract.

While I have seen foreclosed homes damaged, toilets and sinks missing, entire kitchens barren, this was the first short sale where someone had sabotaged his chances of selling a home. While I knew this seller was in the middle of a divorce and angry, I tried to make sense of the destruction.

While some may see the destruction as an expression of anger towards the banks, a silent revolution, I feel we are seeing an epidemic of angry home owners, grieving over the loss of their homes--the center of their family's universe.

While buyers have an opportunity to pick up homes at a reduced price right now, there are a lot of homes out there that have been damaged by Angry Sellers or have deferred maintenance. A big problem with these homes for buyers, is lenders often won't lend on them. So right now, patience is the name of the Buyer Game and being the first to find the diamond.

Any Ghosts in the Closets? The Neighbors Will Talk

”Do you think I will get top dollar for my home,” my seller paused before adding, “ even after what happened here?”
From the tone of her voice, my instinct told me that this wasn’t good. “What happened here?”

My seller shared the story of how after they had moved into their beautiful home that the neighborhood children began to tease their children “that they lived in a haunted house”. There was much more to a last minute disclosure of a “death” in the house than had been told. Unfortunately, they had not met the neighbors before the close of escrow to share the tale of the house. While they bought the house at a reduced price, moved in and lived there happily for many years without any problems, knowing the history may have affected their decision to buy the house and should have been disclosed more thoroughly since it will live on with the house.

I have had numerous encounters with neighbors before helping buyers purchase a home and while some neighbors may have a vendetta again the seller, most often the information is helpful.

For example, while looking at a piece of land with a buyer, the neighbor stepped over to share that she wondered why anyone would buy a piece of land you couldn’t build on, because it was in a flood plain. While this wouldn’t necessarily stop me, if I loved the land, just because a neighbor says something doesn’t make it fact. However, I would definitely heed the warning and check it out with the government agency that issues building permits.

In this day of foreclosures, neighbors can be a great source of information since the banks are exempt from certain disclosures, since they have no knowledge of the house. Recently, I approached a neighbor with a potential buyer for the house next door. With a friendly introduction, we asked the neighbor about the sewer that was noted “available” in the listing information. The kind neighbor shared with us about the home being on septic, as well as, the questionable addition had been there since the house was built. While again, I would still recommend checking out the building plans at the government agency, the neighbor’s information gave my buyers the information they needed to feel comfortable enough to proceed with an offer.

So the moral of the story is, it is a good idea to meet your new neighbors before you make an offer or as soon after, while doing your inspections…to find out if there are any ghosts in the closets.

--Virginia Hall

Grab That Golden Housing Ring!

The NEWS is out! While the Economic Stimulus Package waits for President Obama to sign the bill, the Senate has passed the Economic Stimulus Bill, which included some good news for Home Buyers.

The President of the National Association of Realtors announced this morning, "So here's what we have achieved: 1) the loan limits will be raised to $727,000 in high cost areas, 2) the tax credit will be raised to $8,000 with NO payback [a true credit], 3) interest rates have come down 125-150 basis points, and 4) the bill has over $50 billion in it for foreclosure mitigation, with Geitners Treasury plan signaling that the second half of TARP and TALF will be used to mitigate foreclosures through a government guarantee, drive down interest rates by buying another $200-300 billion of mortgage paper from the GSES's thereby freeing them up to do the same with new mortgages, and Fannie has just agreed to lift the cap of 4 investment properties eligible for loans and raise it to 10."

While most people have ambivalent feelings about the costly Economic Stimulus Bill, it is almost here and you or someone you know might as well take advantage of it. There are certain qualifications first time homebuyers need to meet, but what an opportunity for new as well as move up buyers. Grasp that golden housing ring and run with it!

--Virginia Hall

Unleashing the Economic Stimulus Package on the Housing Market

Last week, Buyers asked me excited about the $15,000 Home Buyers' tax credit. Wouldn't that give the housing market a shot in the arm?

However in regards to the Economic Stimulus Package and the Home Buyer Tax Credit, the New York Times reported vaguely, "In driving down the total cost — from $838 billion for the Senate stimulus bill and $820 billion for the House-passed measure — lawmakers also reduced the Senate’s proposed tax incentives for buyers of homes and cars, which hold big public appeal." So it appears it will be a bit before we find out the rest of the story, the exact amount of the credit.

So while we wait for the details on how much Buyers will get, the government has already previously passed a nice incentive for qualified first time home buyers--at least $7500 in tax credits if you buy before July 1st. So while Interest rates are down, what are you waiting for? If you plan to stay in San Diego, now is the time. Time to get a hold of a qualified Realtor®, such as myself, to start a search.

Homes in good condition are already getting multiple offers in San Diego County. Once they unleash the full details of the Economic Stimulus Bill and expose the exact amount of the credit, the smart people who have been sitting on their money waiting for the housing market to bottom out will act, investing their money and getting back a tax credit, to boot. Don't get left behind. Why not join them?

--Virginia Hall