Thanks for tuning in to the Real Estate Today Podcast. Right now we’re going to talk about negotiating.
Bob Nelson, Eugene real estate investment broker
Marcia Edwards, Eugene residential real estate broker
Marica Edwards: It’s fascinating to me Bob, the long sustained period of time that we’ve run into multiple offers in the residential market.
Bob Nelson: It’s an interesting process. Anytime you have more buyers then you have sellers, that’s going to happen. Particularly, properties that are well priced. If they’re not well priced, you get no offers.
Marica Edwards: Also well priced, but also the condition has a huge influence. It’s, kind of … I think a lot of the … 50% of the buyers nationally, last year, were first time buyers, and some shiny things are really appealing to folks. So to get your place styled in, I’ve never seen it more effective then it has been recently.
Bob Nelson: And once you have an offer, that doesn’t necessarily mean you have a closing. But you do have an initial effort to meet the mind of the parties, and bringing those together is a negotiation process.
Marica Edwards: So if you’ve been in the market recently, especially in the first time buyer price point, and the median sales price right now is $311,000. So it doesn’t mean that you’re nibbling at the bottom of the feeder, but it’s amazing the high prices we’ve got out there. Let’s say that you’re looking in that marketplace, you may have hit the wall a couple times competing with other folks and not been successful.
Bob Nelson: That happens. You have, as a buyer, an idea of you are willing to pay. That’s not necessarily what the seller is willing to accept. Number two, that’s not necessarily going to match what other buyers are willing to pay for the same bundle of benefits that the property represents to them.
Marica Edwards: As Bob says, “You have to lace up your kids.” But prior to that, you got to buy those kids. You got the get them ready. You’ve got to get yourself ready. You’ve got to be pre-qualified. You’ve got to know your edges, what you’re capable of doing. Even though you know what you’d like to do, you may not land there. So in this market, you’ve got to be ready with everything you need to be successful in 24 hours of pulling the trigger on an offer.
Bob Nelson: What’s really interesting, if there’s no broker involved, and you’re dealing directly with the seller, and the seller’s dealing directly with the buyer, the negotiation process is really an interesting and abstract concept.
Marica Edwards: Well I’ve learned in this market, representing a seller is very different then what I have done past years. What you’ve got to do is, you got to look at the possibility of more than one offer in the first four days in the market. If that’s the case, you want to make sure that you bring all those offers forward before you have the seller make a decision on a single offer. We’ve got more on multiple offers and how to navigate it in the next program.
Join Eugene, Oregon, real estate experts: Bob Nelson, Real Estate Investment Broker with Pacwest Real Estate Investments, and Marcia Edwards, Residential Real Estate Broker with Windermere Real Estate, daily at 5:30 on KPNW for the “Real Estate Today” radio show.