Get real with unrealistic sellers

In some areas there is a shortage of desirable, well-priced listings. Sellers who don't need to sell now are waiting for a better market. Many sellers who would like to sell now have unrealistic expectations about what a buyer would be willing to pay for their home.

If you like a listing that is overpriced for the market, one approach is to keep your eye on it and wait for a price reduction. The risk of this approach is that another buyer might come along and start a negotiation with the seller. It would be unfortunate if you were to find out later that the listing sold for a price that you would have been willing to pay.

A better approach would be to start the negotiation process and hope to find a price that is mutually acceptable to both you and the seller. Be prepared for a protracted negotiation if the property is listed considerably over a fair market price.

Recently, a pair of buyers made a very low offer on a listing that was priced a little higher than market price. The sellers wouldn't even respond to the buyers' initial offer. The buyers waited a week or so and offered a higher price, but one that was still unacceptable to the seller. Finally, after six weeks the buyers and sellers came to a mutually agreeable price and the sale closed.

HOUSE HUNTING TIP: When you are dealing with an unrealistic seller, don't play all your cards at once. If you offer your best price initially, and it's quite a bit lower than the asking price, you have no room to move up pricewise.

The purchase price isn't the only item to consider when negotiating. For example, if you don't need to take possession of the property right away, you might offer the seller the option to rent back after closing. This would be particularly attractive to sellers who can't get into their next home right away and would have to rent elsewhere for a while.

In a case like this, consider not including this perk in your initial offer. You can add this benefit in future rounds of negation to sweeten your offer. ...CONTINUED

All rights reserved. This article may not be used or reproduced in any manner whatsoever, in part or in whole, without written permission of Inman News. Use of this article without permission is a violation of federal copyright law.