Many things influence the market and the individuals in the market. While most are pretty static, i.e., location, local economy, interest rates, supply and demand, etc., sometimes things occur that were unexpected and could not have been anticipated. It is important to remember that this phenomenon can occur in the middle of your negotiations creating a “third party” influence that is beyond your control.
I had a great example of this recently, albeit in a non-real estate scenario. A friend had won a signed photograph of a very prominent NFL rookie, a future star with HOF potential. I had won a helmet the day before signed by a renowned veteran on a team I don’t like. Oh, the rookie was on my favorite team so I thought we should trade. I explained how hers was flat, one dimensional, while mine was three dimensional, a helmet. Mine was a proven veteran while hers was a rookie, “a Rook!” I exclaimed.
Then I showed a photo on my phone of me in the front row at a game with the rookie in the foreground in the endzone catching a pass. I asked, “have you had your picture taken with him?” Another friend approached at that time and said, oh, picture with DK, look at this. He had one of him with the rookie while the rookie was signing her picture and the others in that production run. He saw what was going on and asked, “Jim, do you want one of those? I have two. I’ll give you one.” I looked at the person I was bantering with and said, “You just lost your market!”
When you have a live buyer for your property, or you are a buyer getting close to terms with a seller, don’t lose your market. In a dynamic market it can happen in a heartbeat. While you counter looking for the last $1,500 another buyer that recognizes the inherent value of the property can slip in and you lose your position. Not just due to the stronger offer that just bested you, but it can take a lot to overcome the grief you put the other party through during the unsuccessful negotiation process.
When you reach a point you won’t go beyond, make sure to understand the overall consequences of not making the transaction work. Sellers that hold firm should realize that they “just bought the house for $xxx,xxx,” that figure being whatever they countered at. If a buyer doesn’t accept that price, the sellers have equivocally bought it for that price. Buyers that stall out should weigh the time it will take to find a replacement property and complete negotiations to buy it. Stop and think at that point, why didn’t I offer on this one to begin with? Am I compromising and at what expense? Work with your agent for a full perspective of your situation and the consequences of your decision.
Anything can happen at any time. A virus can break out and the economy impacted. Another property can come on the market, or ordinances can be implemented. The recent Douglas County sprinkler ordinance is having a negative impact on values in many places in the Carson Valley. Other governmental changes can impact value, i.e., the Nevada Legislature beginning to make laws negative to investors.
My advice: When you know what your wants and needs are, and you find a cooperative party that can help you meet them, don’t worry about the minutia, the last dollar. Your emotional return on your investment of getting what you want and need will far outweigh the trifling dollars you are chasing. In the long run, those “lost dollars” will be forgotten among the joy of ownership you and your family experience in the home that best suits you rather than a compromise property that you might find that will work with your budget negotiations.
Be diligent and stay the course. Don’t slack off while you have momentum, work through to the end.
When it comes to choosing professionals to assist you with your real estate needs… Experience is Priceless! Jim Valentine, RE/MAX Realty Affiliates, 775-781-3704. firstname.lastname@example.org.
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