Negotiating my first house...

[Rick W]

One last thought, don’t negotiate with her until you know exactly what you want to do, and have a strategy to your negotiations. And whatever you offer, offer it in writing, don’t just talk on the phone or in person, it’s a waste of time. One very large caution on what I just stated: if you make an offer in writing you have to be sure that you can live with that offer. If she simply signs it and says yes, you are obligated. However, if she changes one thing on that contract as a counter offer, and sends it back to you, you can walk away.

And two thoughts on negotiating: try to find out what she wants, what she prefers. If she’s in a high tax bracket, she may prefer monthly payments. If she’s starving, she may need a lump sum right now. Of course you want to pay as little as possible, but don’t just lowball her out of the shoot. The more you can give her that doesn’t affect what you want, the better your chances of getting what you want.

And a trick on negotiating. I’m a huge fan of making pro and con lists. Write down what’s important to you and what you would like out of the deal and what you would like to pay and how you would like to pay it. That’s basically your offer. But, when you write it up, add in two things:

Add in some items that you can give her that don’t affect the value of the deal. I literally know a guy who offered to drive the old gal to church every Sunday and got $25,000 off the cost of the house he bought from her. It doesn’t have to be normal Real Estate stuff, but understand it is a contract.

The other thing is to add in some crazy stuff. It’s negotiating 101. Put in that you want her to replace the roof and install chandeliers. Put in that you want her to buy you 100 rosebushes. Put in that you want her to pay the electric bill for five years. Whatever. You want to add items that you know she is going to kick out.

Here’s where you end up: your offer is made up of what you really want to do, a few gifts for her, and some crazy stuff. Mix it all up. She is going to want to throw out the crazy items. Let her. Then when you get an item you want you look her in the eye to and you say “you know you just got those three items you wanted, this one’s a little more important to me, can I have this one?” And if you work down the list, you should be able to get pretty close to what you want, and if it doesn’t work out, you can walk away before you sign it! It’ll take you a few hours and save you from a 20 year mistake.

 

[Mightyfordranger]

One last thought, don’t negotiate with her until you know exactly what you want to do, and have a strategy to your negotiations. And whatever you offer, offer it in writing, don’t just talk on the phone or in person, it’s a waste of time. One very large caution on what I just stated: if you make an offer in writing you have to be sure that you can live with that offer. If she simply signs it and says yes, you are obligated. However, if she changes one thing on that contract as a counter offer, and sends it back to you, you can walk away.

And two thoughts on negotiating: try to find out what she wants, what she prefers. If she’s in a high tax bracket, she may prefer monthly payments. If she’s starving, she may need a lump sum right now. Of course you want to pay as little as possible, but don’t just lowball her out of the shoot. The more you can give her that doesn’t affect what you want, the better your chances of getting what you want.

And a trick on negotiating. I’m a huge fan of making pro and con lists. Write down what’s important to you and what you would like out of the deal and what you would like to pay and how you would like to pay it. That’s basically your offer. But, when you write it up, add in two things:

Add in some items that you can give her that don’t affect the value of the deal. I literally know a guy who offered to drive the old gal to church every Sunday and got $25,000 off the cost of the house he bought from her. It doesn’t have to be normal Real Estate stuff, but understand it is a contract.

The other thing is to add in some crazy stuff. It’s negotiating 101. Put in that you want her to replace the roof and install chandeliers. Put in that you want her to buy you 100 rosebushes. Put in that you want her to pay the electric bill for five years. Whatever. You want to add items that you know she is going to kick out.

Here’s where you end up: your offer is made up of what you really want to do, a few gifts for her, and some crazy stuff. Mix it all up. She is going to want to throw out the crazy items. Let her. Then when you get an item you want you look her in the eye to and you say “you know you just got those three items you wanted, this one’s a little more important to me, can I have this one?” And if you work down the list, you should be able to get pretty close to what you want, and if it doesn’t work out, you can walk away before you sign it! It’ll take you a few hours and save you from a 20 year mistake.

Dam you good friend! I'll make you my offer maker!! Ha ha.

 

[Rick W]

That’s what I do, but I’m not looking for anything, just trying to help. Let’s please take this to a private message, disclaimer: I’m retired and I’m happy to help, but my content here is just that, mine, not TRS. I don’t want to create a liability for TRS by accident continuing here. I’m sure you understand.

 

[Mightyfordranger]

That’s what I do, but I’m not looking for anything, just trying to help. Let’s please take this to a private message, disclaimer: I’m retired and I’m happy to help, but my content here is just that, mine, not TRS. I don’t want to create a liability by accident continuing here. I’m sure you understand.

Agreed I in no way would hold TRS accountable for anything of this nature etc etc.

 

[1990RangerinSK]

You posted this, asking for advice. I have one word for you: REALTOR.

Let me tell you a (true!) story. I live in a rental house that I could purchase, if I want. I asked my niece (who is a realtor), if I need one, since I already found the property I want to purchase, and I am willing to pay their asking price, when the time comes. She said that yes, I should engage a realtor.

Here's the thing: A realtor will know how much the property is REALLY worth. The realtor will also write the offer, and advise you of what should be in it. And, they will handle negotiations on your behalf, and then come back to you with a counter offer, which then you can either approve, or turn down. Will the realtor cost you money? Probably. But, it's worth it, in the end. You're getting professional advice.

 

[MikeG]

Assuming they have any brains, and I speak from experience here.

I don't think I would ever hire one again without seeing if they were making a living at it (huge number are bored, semi-employable people supported by spouses). A small percentage make all most all the money, that's who you want to hire, the ones with brains.

Need a track record to sort them out. If you can find a good one - fantastic.

 

[Mightyfordranger]

You posted this, asking for advice. I have one word for you: REALTOR.

Let me tell you a (true!) story. I live in a rental house that I could purchase, if I want. I asked my niece (who is a realtor), if I need one, since I already found the property I want to purchase, and I am willing to pay their asking price, when the time comes. She said that yes, I should engage a realtor.

Here's the thing: A realtor will know how much the property is REALLY worth. The realtor will also write the offer, and advise you of what should be in it. And, they will handle negotiations on your behalf, and then come back to you with a counter offer, which then you can either approve, or turn down. Will the realtor cost you money? Probably. But, it's worth it, in the end. You're getting professional advice.

Assuming they have any brains, and I speak from experience here.

I don't think I would ever hire one again without seeing if they were making a living at it (huge number are bored, semi-employable people supported by spouses). A small percentage make all most all the money, that's who you want to hire, the ones with brains.

Need a track record to sort them out. If you can find a good one - fantastic.

I just learned what exactly a realtor is used for..... Not sure why I never put that together.

Also the family said they'll take 28k for the house. I politely said no thank you maybe later, I'll look elsewhere. So when no one buys that house in another 5 years. And it it actually starts falling in completely I'll give em like 8k for the dirt and push it over.

 

[Dirtman]

I always assumed becoming a realtor was simply the next logical step in your career path after your plans of joining a pyramid scheme and selling cosmetics door to door finally fails.

And after you give up on the fabulous life of a realtor, you move on to starting your own internet business selling fashion accessories for cats...

Finally you die alone, your cats eat your corpse, another realtor sells your home, adopts some of the cats, and the cycle repeats.

 

[RonD]

Life is a mysterious adventure

 

[Rick W]

Hey, hey, hey, let’s be careful about the realtor stuff!!!

After most of my career in engineering, with very high ethics industry wide, since my family has done so much in real estate, I got my license. Like you guys, I had a pretty dim view of realtors and lawyers. I got my license and joined a very well respected firm, and, you know what?



It was MUCH WORSE than I ever dreamed!!!

In my defense, let me say I only do the commercial stuff, no homes.

 

[G8orFord]

Hey, hey, hey, let’s be careful about the realtor stuff!!!

After most of my career in engineering, with very high ethics industry wide, since my family has done so much in real estate, I got my license. Like you guys, I had a pretty dim view of realtors and lawyers. I got my license and joined a very well respected firm, and, you know what?



It was MUCH WORSE than I ever dreamed!!!

In my defense, let me say I only do the commercial stuff, no homes.

I'm a land surveyor. I have my own opinion of realtors.

 

[1990RangerinSK]

I always assumed becoming a realtor was simply the next logical step in your career path after your plans of joining a pyramid scheme and selling cosmetics door to door finally fails.

And after you give up on the fabulous life of a realtor, you move on to starting your own internet business selling fashion accessories for cats...

Finally you die alone, your cats eat your corpse, another realtor sells your home, adopts some of the cats, and the cycle repeats.

Uh, no. Becoming a realtor is a worthwhile career. Realtors are highly trained experts who are required to write an exam (and pass said exam!) in order to be licensed. An individual can not call themselves a realtor unless they are licensed.

 

[MikeG]

Eh......

I had a girlfriend who, on a good day, could do second-grade math. With a calculator.

She passed her exam to get her license. Just sayin' ......

 

[Dirtman]

Actual copy of the real estate license exam...



Which one of the following is a house?

A.

B.

C.

 

[MikeG]

I do know some agents, and one broker, that I respect. Commercial people seem to be a cut above residential. Having said that... I've known a few agents, for whom the previous post, would have been a stumbling block on their license exam.....

One of two checks I ever got that bounced was from a broker, the other an AIG Financial office right before that company went mammary-glands up.

If you want to weed out a fair percentage of the bad ones, find out what else they sell. If they are involved in time shares, diet pills, cosmetics, vacation packages, nutritional supplements, or any other sort of multi-level marketing.... RUN!!!!!

And my GF has a cat that looks remarkably like the above, except it resembles about three cats, stuffed into a one-cat hide. Which has nothing to do with the post or thread, but true none-the-less.