Negotiation has always been a component of real estate. But it’s not mandatory. One party can try and the other can say no. So much of that has to do with how the market is, and whether it’s a buyer’s market, a seller’s market or a balanced one. Negotiating is very common in a balanced market.
WHAT KIND OF MARKET IS IT?
Buyer’s Market – price tends to be first and foremost. The longer a property has been listed, the more likely a below-asking offer will be submitted – especially if it is the only offer. Once two parties come to agreement, there is usually another round of negotiation regarding repairs. When listed properties are plentiful, the buyer has other choices and may play hardball where offers are concerned.
Seller’s Market – appreciating prices and/or low inventory put sellers in the driver’s seat. They push back on price, and know the buyers don’t have a lot of other properties to choose from. They may also be competing with other buyers for the home. If the seller encounters a buyer with strong financing though, it’s less likely they’ll take too many chances where repairs are concerned. (more…)