Triangle Area Real Estate News & Information

In most parts of the country real estate sales having been strong and here in the Research Triangle (Chapel Hill- Durham- Raleigh North Carolina) this is certainly the case. Throughout 2013 active inventory on the market for sale has been low; hovering at about 2-3 months worth clearly indicating a market favoring Sellers. {Note: 6 months of inventory is considered a neutral or balanced market; less than this favors sellers; while more than this favors Buyers} Looking ahead into 2014, I see nothing that's likely to change, available inventory will likely remain low. Mortgage interest rates continue to be close to all time lows and while their likely to come up some from where they are now they will still be extremely affordable. It's true that getting a mortgage is requiring slightly more work for some Buyers but generally speaking qualified Buyers will likely have more problems finding a home they want than they will have in finding a mortgage.

As an experienced real estate Broker who has successfully closed on over a thousand transactions in my career; I've had the opportunity to work with countless other Realtors and many thousands of buyer and seller clients; all of them different. During this time I've learned many things and what distinguishes the transactions that have closed successfully from those that have not generally comes down to proper negotiating etiquette.

Etiquette Tip # 1: Real Estate Isn't A War

Buyers, Sellers and Realtors all need to bear in mind that real estate isn't war. If you want a successful transaction that closes on time and doesn't significantly add stress to your life; then it's important to bear in mind this isn't a Win/Lose type of negotiation. In order for transactions to be successful they need to be Win/Win. Put another way; at the end of the day both sides need to feel that the terms are fair and that they can live with them. Ninety-nine percent of the time this is aided by each side having reasonable expectations to begin with.

Etiquette Tip #2: Buyers & Sellers Should Focus On Market Data

Both Buyers and Sellers should be focused on market data. Forget online estimates generated by sites like Zillow, Trulia etc. These are meaningless, no one at these websites is a realtor, none have any real specific knowledge of whatever market your working in and none has ever seen the property you're thinking of buying or selling. I've written about this before. Magic 8 Ball- The Value of Online Estimates. In order to get the best, most accurate data you're going to need an experienced local Realtor. I know from experience that if both sides start on the same page in terms of market data then then likelihood of a successful negotiation is extremely high. If on the other hand; one side or the other proclaims, “We don't need no stinking data.” in other words; they want what they want and don't care about market reality, then the entire negotiation is likely going nowhere fast.

There's a saying in our business, “The best part of our job is the people. The worst part of our job is the people.” Honestly the thing I enjoy most about my work is in fact meeting people. I consider myself fortunate to regularly meet an incredible variety of interesting people from all walks of life and from all over the world, none of them the same, and all with different perspectives. This keeps me on my toes and the challenge of helping them through the process is endlessly fascinating.

I can honestly say it's been more years than I can remember since I've run into a real estate problem I've not encountered dozens if not hundreds of times in the past. I know how to handle these, what to do, and who I'm going to need to call on in order to get it resolved. I'm in a comfort zone as I have control of the situation. What I don't have control of are the people involved, and this is the challenge. It's my job to try and keep each side negotiating and moving towards a successful closing which both sides indicated they wanted when they signed the sales contract.

Find An Empathetic Real Estate Agent Who Understands Your Needs & Respects Your Emotions

What truly distinguishes great Realtors from the vast majority who have their licenses; is their experience and understanding that a significant part of the job we are hired to do is to negotiate through the typical hurdles that arise during real estate transactions. The best Realtors understand that buying and selling real estate can be stressful on those involved. Loans get delayed or complicated, issues with the home inspection, title, HOA, survey, etc. may arise and often to the Buyers or Sellers involved these can seem overwhelming. It's not uncommon for one side or the other to feel as if they're being put upon; and occasionally to want to simply throw in the towel. It's up to both the Buyer Broker and the Listing Agent to explain to their client that these hiccups are common, and that if their willing to allow us to help them then 99.9% of the time these problems can and will be resolved.

I believe in managing expectations from the moment I first sit down to chat with a potential buyer or seller. I explain how I work, I explain my focus on market data and explain what I'll be doing for them throughout the transaction and I tell them that in order for there to be a successful negotiation both sides need to focus on market data {in other words what are comparable homes telling for in today's market and what is the status of supply and demand.} I make a point of letting them know that it's highly unlikely that they will get everything they wan.

With the market presently favoring Sellers, Buyers need to be prepared. With inventory low, multiple offers on properly priced homes is common. Nearly half of my transactions last year ended up having multiple offer. Properties that are priced right and in good condition will go quickly often in a matter of days, Buyers need to expect this, not let it discourage them and be prepared to move quickly. {If you're not pre-approved for a mortgage or paying cash, you're not ready to start looking at homes.} Get educated. Ask your agent to show you market data. Be reasonable when making repair requests. Sellers get your home ready to sell. I tell my clients, “You have one opportunity to make a good first impression.” Price it strategically, even in this market overpriced homes don't sell, and when they finally do it's generally at almost 7.5% less than similar homes that were priced right to begin with. Time is money.

Home Buyers & Sellers Must Be Open To Negotiations

Buyers should not expect to buy any home that isn't new, have it inspected and hand over the inspectors report to the Seller and say, “Fix everything on the list.” You're not buying a new home, and there should be no expectation to have a seller make it new for you. I've seen a thousand or more inspection reports some good some not so good (Find out more about Home Inspections). In all of them despite the language that the inspector may use, there are problems with a capitol “P” and problems with a lower case “p” and if the home you're buying isn't new then you should be focused on the former and not the later.

Sellers should expect to negotiate. Be prepared to have to address some of the problems uncovered during a home inspection. Remember the buyer in most states can walk away and it's going to cost them very little, but the problems remain and you're either going to deal with them now and close in a few more weeks or not; but one way or another you're ultimately going to have to address them.

Both sides should prefer to discuss a closing cost credit it at all possible, it's best for both sides. The buyer can hire anyone they want and if their unhappy with the work they have to deal with the contractor and not argue with the Seller immediately prior to closing over the quality of the work. The Seller is generally busy trying to move out or is already out and can't easily come back and deal with things. Get some quotes and discuss a credit.

A Real Estate Agents Role In Negotiations

Real estate agents– This is between our clients. We help best when we're honest with our clients and let them know when we think their being reasonable and when we feel their not. We need to honor their decision and advocate on their behalves as we present their side of the argument, but encouraging them when their expectations aren't reasonable isn't honestly in their best interest and I certainly haven't ever hesitated to privately tell one of my clients, “I'll do as you tell me as long as it's legal, but I don't think you're being reasonable and what's likely to happen is this transaction is going to fall apart. If this is what you want, please tell me and I can end it now and we can move on and look for another home or another buyer.” Realtors should remember that the relationships we form with our clients are personal, but this part of the job is business and shouldn't be taken personally. In the end both sides want the same thing; the sale to go through and for each party to feel that it was fair. This “etiquette” is what brings about Win/Win negotiations and after all that's what we're striving for.

I've been helping people in central North Carolina buy and sell homes for several years. For all of your real estate needs, trust the team with the experience and expertise. My NC Homes can help you with any and all of your real estate needs and help you make the most out of your home for sale. Send us a message online or give us a call at 919-659-5173.