Column: Step Three To Home Ownership
[Written by Freddie Forth & Martha Harris Myron]
Negotiating a contract, whether written or implied, occurs in some form or another in almost every human interaction: wages, purchasing consumer goods, union bargaining, even in human relationships.
It can be set implicitly and clear cut, resolvable in a matter of minutes, as when the price of a grocery item or clothing is too expensive, we negotiate mentally by choosing a cheaper competitive product or it can be more complex in real estate negotiations because each party to the process is human, with different goals, price ranges, and projections of how the final outcome should be realized.
Why this should be hinges on how participants perceive the sale process. Individually, we have to feel that we benefit from the end result; that our goals are met, that it meets our criteria of what we wanted and of course, whether the final price is affordable.
The entire process can be emotionally exhausting for numerous reasons. The longer the process of reaching a mutually acceptable agreement, at times, may make it more difficult to finalize.
The vendor/seller[s] are proud of and love their home and think it is worth X price.
The buyer[s] want to make adjustments that fit their view of home perfection and feel the property is worth Y price.
Little details can become disputes. Personalities and those emotions can override reasoning.
In an earlier career in the US construction industry, I have seen contracts fail over a fridge, the length of kitchen counter, and yes, the uncompromising attitude of one or both parties, e.g. the buyer and seller.
These are not just my random observations!
Experienced professional real estate agents have seen numerous complications over time. Hiccups that can become stand offs; inability to compromise; demands that cannot conceivably be agreed upon; unable to manage the time needed to a committed contract – the deal is not done.
In the role of a neutral trusted negotiator and mediator, a real estate agent, first, eliminates potential personality conflicts [in many cases the two parties never meet]; knows the locality; the environment, can suggest best ways to price a home to sell, or in the buyer’s case, provide information on financing, inspections, the legal contract process, and much more.
The end result: both parties will reach a middle ground, that of a satisfactory closing price agreement.
See the YouTube video here and stay tuned for step four!
- Freddie Forth & Martha Harris Myron
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