May 2012 RSS Feed

Several of my clients have been in multiple offer situations over the last month, with properties coming on the market, typically not short sales, and the listing agent receives 3-10 offers, each offer outbidding the other, raising the ultimately accepted offer often over list price.  I closed a sale yesterday, where I represented the buyer on the purchase where there were four offers in the first four days on the market.  The seller countered highest and best and my client's offer was the best one by a small margin.  The nearby comparables were in the $225,000 range, yet the home sold for $242,000.  The appraiser came and was surprised by the $242,000 price.  He specifically asked the listing agent if there were multiple offers, and she told him there…

The latest Market Action Report released by the local RMLS today shows for sale housing inventory in the Portland Metro area has an inventory of only 4.7 months.  This is truly amazing considering that the inventory has not been this low since the peak of the market in May of 2007 when there was a 4.5 month supply.  Also, there is no $8,000 tax credit which is pushing buyers to purchase homes when they otherwise would wait, which pushed buyers to act in 2010 and artificially reduced the inventory from 12.9 months to as low as 7.0 months of supply. 

In any real estate transaction both sides are trying to get the best deal to meet their objectives. Often time we think it is only about price when entering a negotiation. Price is just the beginning, and though important, may not be the key to a successful negotiation.

The first step in any successful negotiation is to define the objective. Every negotiation is different so defining the objective will set the stage for future success. The objective for the buyer and seller of real estate can be very different so it is critical to learn what is driving the other side.

It is essential not to get hung up on the other party’s stand or position. A skilled agent will ask questions to identify the right area of concern or issue or interest to determine the…

Rick Bean has been awarded the Certified Negotiation Expert (CNE®) designation by the Real Estate Negotiation Institute (RENI).  The CNE® is earned by real estate professionals after successfully completing formal negotiation training from the Real Estate Negotiation Institute.  Agents who receive this certification are in the top 1% of all agents nationally.

With professional negotiation skills, agents are able to help clients obtain better results in the sale or purchase of their home.  CNE® agents have a powerful competitive edge because of their ability to 1) communicate effectively to uncover more information, 2) help clients understand their options, 3) work collaboratively with others, and 4) resolve deadlocks.  CNE® agents have a thorough…