Today we’re at part number four of our five-part series on real estate negotiations.
Bob Nelson, Eugene real estate investment broker
Marcia Edwards, Eugene residential real estate broker
Marcia Edwards: Bob, how do you explain when a buyer comes to you and says, “I want to buy this place, what should we offer?”
Bob Nelson: Well, and that’s an interesting question, because how have we … well, first of all, are we financially qualified to be playing the game at the level that this house is being offered? If we can’t afford it, then the answer generally is “No, look out, we’re not going to get there from here.” However, if we are financially qualified, then it becomes an issue of how low can I go without offending the seller with the anticipation of, “I really want the property, let’s buy it and close. Be careful.”
Marcia Edwards: The caution comes, especially in this market, because there’s a lot of buyers that you may be in a position where you don’t have competition. Good for you, that’s excellent news, but there could be competition anytime before you’re in contract with that seller. You start the conversation, someone can interrupt the conversation at any point with another opportunity for that seller.
Bob Nelson: And that’s a tough situation. If you get another offer that comes in a at the same time that you’re negotiating yours, the most attractive person at the dance or is going to get invited to dance. And if you’re the ugly one, guess what? You take a seat until you spruce yourself up a bit, and come in at a level that’s acceptable to the sellers in the market.
Marcia Edwards: So comb your hair before you write an offer?
Bob Nelson: You got that, and brush your teeth, too, for crying out loud.
Marcia Edwards: All right, so there’s that. The idea of being prepared to write a full price offer is definitely relevant in this market today. You’ve got to make sure you’re in defense of your resale and your realtor can help you make sure that you could repeat the event at another juncture, or it could have been repeated historically. That is to say there’s something that justifies that value by other sales recently.
Bob Nelson: And that is so important, whether it’s a full price offer … if the property is under priced, and that’s a great strategy that some are using right now, under pricing with the anticipation, I’ll get three or four offers and they’ll up bid themselves to the level at which might exceed even where I thought we should come online. So if that’s the case, be very attentive to what’s a reasonable price based on recent sales. And that’s where your broker can be extremely helpful.
Marcia Edwards: And even if you’d say it’s the happily ever after house, life happens, you definitely want to have something that’s refinanceable or marketable in the event that things don’t go as planned.
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 5:30pm on KPNW for the “Real Estate Today” radio show.