Negotiation Strategy for Home Seller and Buyer ..... by Cheryl Miller-Eld

Negotiating Strategies when Buying/Selling Real Estate[Strategy #1 Selling a Home]   The home I am selling is roughly figured to sell at the price of $189,900. but factored in is the unknown (negotiation room) and commissions for agents that may surface and feel their contribution was winning nudge tying the deal together and thus you want to count them into the deal paying 3 percent per side (both buying agent and selling agent reaping 3% of the Sales Price, each).
   Seller sets the advertised price at $222,000. Before long some smooth negotiators come by and see the home. Showing no emotion and no passion about the home, they view and list the updating they feel is necessary to bring the home up to par.
   Seller gets a call from the buyers and the buyers offer (with "NO real estate agent" involved) the following:
$198,000.00     Price to be paid for the home.
    10,000.00      Buyers own money down
  188,000.00      Buyers to Finance the Net diff.
     6,000.00       Seller equity to be awarded the Buyers for their own rehab
 of the home and updating, etc.
     4,000.00        Seller equity contributed toward
the buy-down of the Interest Rate to be paid on the 30-year Financing.
       500.00         Seller negotiates w/the Appraisor to be paid from the Settlement of Escrow by the Title Company.
       200. 00        Home Inspection paid by the Buyers outside of Closing.

   This ensures the Buyers will have the lowest possible house-payment since extra cash was thrown toward Discounting the Rate of Interest and beefing the Origination Points to butter up the Mortgage Broker so he/she has not the temptation to raise rates to fund backside points to which their Commission comes from. Plenty of front side points for the Broker ensures the absolute lowest Interest Rate of the Loan Program can be utilized to calculate the house-payment. {MoneyTip!!!}
   The Buyers are $300.00 ahead on the entire transaction with $6000.00 cash coming to them at the Close of Escrow to refurbish the home as they see fit.
The Sellers net $187,500.00 from Sale of their Home.

Figured accordingly:

$222,000. Initial Price of Home Advertised.
24,000. 6% commissions NOT PAID to real estate agents. None were involved, remember. Inflated price was reduced by the unknown factor. Good Faith gesture on the part of the Sellers thus price was reduced.
10,000. Paid toward Closing Costs of the Buyer and/or Refurbishing capital to update the home as seen fit (after the closing).
500. Appraisal Fee netted out of the Settlement at Closing and paid out to the Appraisor by the Title Company after Closing.
[That is STRATEGY NUMBER ONE of the two-strategy series Article on Home Selling in Today's Real Estate Market.]
(Written July 5, 2011)
by
*********************************************************************************************Cheryl Ann Eld (MillerEld) Copy Editor for: WSWwebdevelopment