Pat Benatar wrote and sang that line a few years ago.
If you are buying a house, the human nature is such that you want to steal it. You want to tell your buds at the PTA, at the Y, or at the club, “yes, I absolutely STOLE that house,” the implication being that you are a shrewd negotiator and an excellent business person.
The truth is that either you are telling a big whopper, or you were luckily unsuccessful, while you had drawn your weapon and were trying your best to blow a hole in your own foot. While it is always OK to ask for the moon with a picket fence when you are making an offer on a house, just be prepared to pay for it.
People buy houses like some people buy cars- with or without emotion. People who buy anything with an eye toward resale, are not buying for themselves, and they do not have an emotional connection with the purchase. But people who are buying something for themselves do have that connection, so the rules change dramatically.
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The non-emotional buyer can simply make a low-ball offer and move on, but the involved buyer is subject to a different set of dynamics. When I am working with a buyer who is not buying as an investment to rent or resell, most of the time when my advise seems appropriate and/or called for, I recommend that the buyer make his stronger offer rather than play the game that some do. The negotiation process is the subject of an entirely different series of articles, but the purpose of this one today is to deal with that situation where the heat is on. The buyer is ready to purchase a property that is very popular, whether proven or perceived.
A house is perceived to be popular (right or wrong) when after looking at many houses here is one that seems perfect! The more houses one has looked at on the way to this one, makes it seem even more perfect. It may also be the object of a very full open house. Or there could be a lot of business cards lying on the counter indicating several showings. What ever the reason, if it’s perfect for this buyer, this buyer assumes it’s also perfect for everybody else. If they have missed a couple of earlier houses, that only adds to the drama.
A house that is proven popular, can be demonstrated popular. In Tennessee, Realtors even have a form, the “Pat Benatar Form,” F-37, that exclaims to the interested world there are several offers on the house subject house, so sellers are giving everybody the chance to do their best, and the deadline will usually be stated. Here is your one opportunity to revise your bid/offer knowing it is your last offer.
At his point I always tell my buyers that if they love the house, this is the time to stretch out and make an offer so bold that it almost scares them, and they know they could never offer any more. That way, even if they don’t get the house , they will always know that they did their best, that they did give it their best shot. There is nothing worse than feeling or hearing that a buyer could have done better had they known all the facts. After offering their highest and best, there may still be no winner this time for this buyer, but there will also be no lingering regrets.
There may be other situations like these two that we can talk about later. But for a buyer who really likes a particular house, you can play games on your computer, if you need to play games. In bidding on this house, be serious. Give it your best shot.
Good luck for now! Get to work if you want it to happen. Call me if you want to talk. Yes, I am the Reasonable Realtor, Don Martin, MARTIN PROPERTIES (615) 973-8970.
Just make your comments here, or you can reach the Dean of Graduated Realtors at www.FSBO-GUY.com or “like” him at http://www.facebook.com/MartinProps
And please don’t forget our book The NEW REAL ESTATE will be out in a few days. You need to have it on YOUR bookshelf!
Don Martin
Martin Properties (Flat Fee MLS to Full or Graduated Services in Nashville, TN)
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