Negotiating is a delicate process. There are always emotions that get into the equation. Of course there are emotions, its a big ticket item and a house usually has a lot of memories either good or bad in it.
A Real Estate agent is really a mediator between a seller-buyer and two agents. Sometimes that mediation cannot go anywhere because somebody comes in and says this is our first and final offer. While this maybe true in some hard headed people, it is usually not a final offer but more of a knock at the door.
Once a deal gets passed around a few times, one party comes and says this is their final offer, and it does have to end at some point, or else you’ll be negotiating dimes and nickels. The key to a good negotiator is to read when you can go back with a counter offer without getting the other party so upset that they actually walk away. If it comes to that, then forget it and you failed.
The best negotiation practice is to go lower on the price, but not too low that they don’t even look at your deal. You want to call this first offer a knock at the door. (Now my disclaimer is, this scenario is if there are no other offers) The next step would be to go closer to the counter you receive and then after that meet somewhere in the middle, and bang you have a deal.
Its a dance that your agent must know how to play and reading all the players cards like in poker is key to getting the upper hand. The question is, are you at the table with a good hand or just checking your way through.
Everything affects the housing market. if the interest rates go up .25% it affects the market. Job rate, solds, inventory, immigration, the dollar, and many more factors go into what will make or break a market.
Here are a few things that could affect the market in either direction:
1. Gas: Over time, if people have more money in their pockets, they can save more. Someone like me has been saving $30 per tank, 3x a week, that’s right roughly $400 a month, and that’s about $6000 a year, give or take. That amount of money is a small deposit on a condo development.
2. Dollar: If the dollar goes down, that means more foreign investment in Real Estate, and in manufacturing. More Manufacturing and Real Estate buys, the market goes up.
3. Immigration: The immigration rates will rise or stay the same depending on policy, but it is not going down, Canada needs immigration to bring in more money and the government knows that. This will keep the market steady.
4. Interest Rates: The interest rates will go up this year and it will affect the market. Depending on how much they go up will determine how much it will change things.
5. Inventory: In some areas there is a lot of inventory while other not so much. This affects the market in that it makes things hard to determine. Forget everything about pricing, and comparables, if the inventory level is high or low will effect your price significantly. Supply and demand.
There are so many factors that can change the market. The past has shown us that any number of things can change things and the market.
Your House is for sale, and you have a showing coming. You ask your agent if you could stay? You are curious to see what they say; who is looking at your place; Do they like it? The agent says nervously, sure you could be home. WRONG. The agent is just saying this not to upset you because it is your house and it is hard to tell you to get the hell out! during a critical showing.
First off, if you have a good agent and you listened to him, you would’ve mad sure that all of your valuables are gone, so that excuse for being home during a showing goes out the window.
2nd, you think you can show and sell the place better than your agent, ugh, why did you hire an agent and in particular that one, just sell it yourself, get out of there!
3rdly, The last agent left your window or lights on and you want to make sure they are closed because you have hefty hydro bills…The hydro bills are nothing compared to the waste of time of showing the house with you in it. Stop Being CHEAP!
THERE ARE many more dumb excuses for being home during a showing. The only one is if you are on your death bed. Then who cares about selling the house. You might as well not show it.
Think about it, when you go see a house and the owners are home, how do you feel, restricted, intruding, you just want to get out of there, you can’t speak freely while looking at the home. RIGHT, that’s what they feel. YOU might as well not show the house and wait for a time when you can get out of the house.
Other issues arise, if your agent is not there and you are, you say something incriminating about the property “Sure you can build that addition”. Are you flexible on the price? Why are you moving? So many more things you can do and say, and what about the body language you present, you are not a trained sales person.
Just get out of the house and let your agent do the work. More importantly, let the agent coming in do their job, your paying them right? Oh you forgot you pay their commission! They want the house sold more than you do, TRUST ME! GET OUT!