{"id":2155,"date":"2007-11-03T09:16:05","date_gmt":"2007-11-03T16:16:05","guid":{"rendered":"http:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/?p=2155"},"modified":"2007-11-03T09:16:07","modified_gmt":"2007-11-03T16:16:07","slug":"how-low-can-they-go-negotiating-a-real-estate-bargain","status":"publish","type":"post","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/2155\/how-low-can-they-go-negotiating-a-real-estate-bargain\/","title":{"rendered":"How low can they go? Negotiating a real estate bargain"},"content":{"rendered":"

This is my column this week from the Arizona Republic<\/i> (permanent link<\/a>):<\/p>\n

 
How low can they go? Negotiating a real estate bargain<\/b><\/p>\n

Everybody wants a bargain. The question for homebuyers is, how do you get one?<\/p>\n

I was in a property last weekend with a buyer. The home was listed for $450,000 and the buyer asked, “Do you think they’d be willing to cut the price by $100,000?”<\/p>\n

Stranger things have happened, but I’d bet against it.<\/p>\n

Here’s why: Let’s assume the monthly payment is $2,000. The seller could afford to wait four years for a better offer before slashing the the price by $100,000 would make sense. There are other factors to consider in real life, and this kind of analysis is best done on a spreadsheet. But a lot can change in four years.<\/p>\n

You certainly don’t want to pay any more than you have to, but you cannot possibly pay less than the seller will agree to.<\/p>\n

What can make sellers particularly negotiable? A new job out of state and they can’t qualify for two mortgages. A new house under contract with a hefty non-refundable deposit. No one likes to think about profiting on the misfortunes of others, but sellers who are facing foreclosure are likely to be ready to cut to the quick.<\/p>\n

In other words, sellers who have a strong motivation to sell now are going to be a lot more willing to negotiate price cuts than people who kinda-sorta want to move, provided they can get their price.<\/p>\n

But even if you find a motivated seller, there’s a complicating factor: That seller has to have room to negotiate — equity in the home. If the house is encumbered at or near the list price, there’s a limit to how much the sellers can cut the price, no matter what their motivation. To go further would result in a short sale — the sellers would come to the closing table “short” of the full amount they owe.<\/p>\n

Short sales can be great bargains, too, but, since you’re negotiating with the lender more than the seller, they’re a chancy proposition at best, and they can take a Read more<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

This is my column this week from the Arizona Republic (permanent link):  How low can they go? Negotiating a real estate bargain Everybody wants a bargain. The question for homebuyers is, how do you get one? I was in a property last weekend with a buyer. The home was listed for $450,000 and the buyer […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_crdt_document":"","jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[6,5],"tags":[],"class_list":{"0":"post-2155","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"hentry","6":"category-marketing","7":"category-real-estate","9":"no-featured-image"},"jetpack_featured_media_url":"","jetpack_sharing_enabled":true,"jetpack-related-posts":[{"id":1972,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/1972\/looking-for-a-bargain-priced-home-if-you-dont-flinch-the-seller-will\/","url_meta":{"origin":2155,"position":0},"title":"Looking for a bargain-priced home? If you don’t Flinch!, the seller will","author":"Greg Swann","date":"September 28, 2007","format":false,"excerpt":"This is my column this week from the Arizona Republic (permanent link): \u00a0Looking for a bargain-priced home? If you don't Flinch!, the seller will Let's talk a little bit about buying strategies. Last week's rate adjustments by the Federal Reserve Bank may have scared up a few buyers. I'm taking\u2026","rel":"","context":"In "Investment"","block_context":{"text":"Investment","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/investment\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":5374,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/5374\/restoring-a-bargain-priced-lender-owned-home-is-easy-if-you-have-cash-but-a-hud-203k-rehab-loan-makes-it-easy-even-if-you-dont\/","url_meta":{"origin":2155,"position":1},"title":"Restoring a bargain-priced lender-owned home is easy — if you have cash — but a HUD 203k rehab loan makes it easy even if you don’t","author":"Greg Swann","date":"November 1, 2008","format":false,"excerpt":"This is my column for this week from the Arizona Republic (permanent link). \u00a0Restoring a bargain-priced lender-owned home is easy -- if you have cash -- but a HUD 203k rehab loan makes it easy even is you don't Last week we talked about troubled homes and how they can\u2026","rel":"","context":"In "Lending"","block_context":{"text":"Lending","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/lending\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":2181,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/2181\/a-consumers-guide-to-the-divorced-real-estate-commission-will-the-negotiating-their-buyers-agents-compensation-make-buyers-more-practical\/","url_meta":{"origin":2155,"position":2},"title":"A consumer’s guide to the divorced real estate commission: Will the necessity of negotiating their buyer’s agent’s compensation make buyers more practical?","author":"Greg Swann","date":"November 8, 2007","format":false,"excerpt":"Part II: How buyers can finally take a seat at the grown-up's table When a potential home-seller calls me to set up a listing appointment, very often the first question I will hear is, \"How much do you charge?\" A motivated seller is done with the house, and now all\u2026","rel":"","context":"In "Marketing"","block_context":{"text":"Marketing","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/marketing\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":2903,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/2903\/looking-for-a-bargain-in-phoenix-real-estate-add-some-elbow-grease-to-your-money-and-go-for-a-bank-owned-home\/","url_meta":{"origin":2155,"position":3},"title":"Looking for a bargain in Phoenix real estate? Add some elbow grease to your money and go for a bank-owned home","author":"Greg Swann","date":"April 5, 2008","format":false,"excerpt":"This is my column for this week from the Arizona Republic (permanent link): \u00a0Looking for a bargain in Phoenix real estate? Add some elbow grease to your money and go for a bank-owned home Last week we talked about how home sellers can command a premium price in the current\u2026","rel":"","context":"In "Marketing"","block_context":{"text":"Marketing","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/marketing\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":976,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/976\/overcharging-a-dedicated-realtor-is-a-bargain\/","url_meta":{"origin":2155,"position":4},"title":"Overcharging? A dedicated Realtor is a bargain . . .","author":"Greg Swann","date":"January 31, 2007","format":false,"excerpt":"Attorney Craig Blackmon issues a testy remark in a comment today, but the truth is, I could not be happier to discuss the underlying issue. Sez Craig:Well, it appears that even the \u201cfull service\u201d agents are overcharging just a wee bit. It turns out that a successful agent must rebate\u2026","rel":"","context":"In "Disintermediation"","block_context":{"text":"Disintermediation","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/disintermediation\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":323,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/323\/negotiating-buyer-representation-real-estate-is-probably-the-only-industry-that-doesnt-respect-fully-the-person-who-pays\/","url_meta":{"origin":2155,"position":5},"title":"Negotiating buyer representation: “Real estate is probably the only industry that doesn’t respect fully the person who pays . . .”","author":"Greg Swann","date":"September 11, 2006","format":false,"excerpt":"On the general topic of buyer representation, Jim Duncan at Real Central VA has a post up about being very choosy about which clients he will take on. Interestingly, Jim provides a link to a specimen copy of a Virgina Asscoation of Realtors Buyer Broker Exclusive Employment Agreement. 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