July 23, 2024
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July 23, 2024
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Linking Northern and Central NJ, Bronx, Manhattan, Westchester and CT

Let’s talk a little about the home-buying process. It all starts with the homeowner wanting to sell their home and a buyer looking to own a home. Logically, homeowners want the highest price they can get, and, yes, you guessed it, buyers want the lowest price they can get. Nothing wrong with that unless… the seller doesn’t wind up selling their home and the buyer doesn’t wind up buying the home that they want. Yes, there is a bit of stress involved simply because of the nature of the transaction, the size of the dollar amounts and the host of professionals and personalities that everyone has to work with. Hot markets, down markets, whatever the current dynamics prevail in the economy, the following theory holds true: we all want the best for ourselves. I maintain that we can want the best for ourselves, get what we want, and do it without stepping on the wants and needs of the other person. You do not have to go home with a mantel feeling satisfied that you have extracted every drop of blood from the other person’s veins. With an open mind, win-win is possible. Ask yourself what is a relationship worth. How many dollars is it worth to you to make another person feel slighted. More importantly, ask yourself, “How can I achieve what I want and have the other person walk away happy too?”

Issues can and do pop up during the real estate transaction. They can range from personality conflicts, timing issues or challenges regarding property value, structure and title such as the appraisal came in low, asbestos was discovered, an oil tank was found, encroachments, estate issues or the foundation is a bit weak. I am not going to go through a litany of every possible issue that can pop up, for three reasons: (1) If you are currently in the middle of a transaction—you need your sleep. (2) You needn’t worry about things that didn’t materialize yet, and (3) there are always creative ways to address issues that pop up. All issues have resolutions with a meeting of the minds involved.

In negotiation, all is possible. Some tools in the negotiation arsenal can be: seller concessions, price changes, closing-time extensions, temporary rent holdovers, splitting of additional fees etc.… the creative mind has no limits, but again—no taking blood.

Preparation is the key to a successful negotiation, so how do you start?

Think about your goals: What do you want to achieve from the negotiation? Tune in to what the other person may want.

What can you trade: Do you both have what each other wants? What do you feel comfortable giving away?

What are your alternatives: Do you have alternative comparable choices? What if you can’t come to terms—does it matter? Are future opportunities still possible if you go your own way? What choices does the other person have?

Is there a history to the relationship? Can this history impact your negotiation? Are there any hidden issues that may impact the outcome of the negotiation? Can you address those issues?

What are everyone’s expectations from the negotiation? What were the past outcomes?

What are the potential consequences should one of you win or lose the negotiation?

Who has the power and control of the resources in the relationship? Who has the potential to lose the most if both can’t come to terms?

What are the win-win considerations or compromises to be made?

Remember, for a ‘win-win’ happy ending, both parties have to walk away reasonably happy. Happy sellers deposit money into their bank accounts, and happy buyers live in the home and area they desire.

Carl Guzman, NMLS# 65291, CPA, is the founder and president of Greenback Capital Mortgage Corp., a Zillow 5-star lender http://www.zillow.com/profile/Greenback-Capital/Reviews/?my=y. He is a residential and reverse mortgage financing expert and a deal maker with over 26 years’ industry experience. Carl and his team will help you get the best mortgage financing for your situation, and his advice will save you thousands! www.greenbackcapital.com [email protected]

By Carl Guzman

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