How Would You Negotiate?
The phone rings – it’s someone I’ll call Mr. Boston, asking about negotiating a price on property. The conversation went something like this. Mr. Boston – Yes, I received an email from your team about negotiation. I was wondering how you structure and negotiate an offer.
Okay, says me……..what specifically can I help you with?
Mr. Boston – How much off of a home can someone expect to offer in Indianapolis? What would be your strategy?
Me: There is not a standard, there are actually homes on the market which are priced correctly and selling quickly. My strategy would depend on the home, location, neighborhood, amenities, how long the home has been on the market, recent comparable sales……..
Mr. Boston: What if the home has been on the market for three to four months?
Me: There is no way I can determine a fair offer price on a home without knowing anything about the home. There are many factors to consider, such as, neighborhood, location, lot, schools, recent sales, seller motivation……as well as how the buyer is financing.
Mr. Boston: The home is priced in the mid $600’s, in a nice neighborhood in Carmel, on an average lot……..it’s a nice home. About how much are you seeing homes in this price range sell for. I want to know how you would negotiate.
Me: I can’t negotiate or suggest a price on a home I have not seen and know nothing about. I might as well throw darts in the dark.
Mr. Boston: I understand if you do not want to tell me a price because you think I won’t use you as my Realtor.
Me: I can’t tell you a price because I know nothing about the home. It would be a disservice to you to suggest I could.
Mr Boston: The assessor’s value is $600,000.
Me: The assessors’ value does not determine market value. You could pay anywhere from $500–700k. on an assessed value of 600k.
Mr. Boston: I can see you’re not going to be very helpful and we are not going anywhere.
Me: You think? Thanks and Good Luck! A last word of caution……….
Mr. Boston – if you do find someone who will give you a price based on the vague information you provided me…….all I can say is………..RUN. As a Realtor, I have an obligation to represent my client’s best interest. in that interest, I do not write offers or suggest an offer price on homes I have never seen.