Do you want a 'Great Deal' or a 'Great Home'? What's the difference?
We are seeing a trend in home buying that we find interesting (to say the least). That trend is toward buyers placing a higher priority on "beating down" the seller in the negotiation game as opposed to locating and purchasing the right home.
I suppose it is due to the shift in the market dynamics from a seller's market to a buyer's market. But, it just doesn't make a lot of sense to me as an impartial observer. In that we represent both buyers and sellers, we get a view from both sides of the equation. We understand that each party wishes to get the best 'deal' possible... but, at what price?
Example: A particular home is priced lower than any other home in the immediate neighborhood. It is a more than 'fair' market price. The seller is obviously motivated to sell now and has expressed such in the price. Along comes a buyer. He has already looked at numerous homes in the area (maybe every home in the area) in his price range - in fact, he is looking at homes $10K, $15K, even $20K over his price range. He's "looking for a deal!" He's already put several offers in on other listings but, of course, they've been rejected. And now he comes along this listing that is priced lower than anything else. The home meets all his needs. The home is in impeccable condition. It's just what he's looking for and it's even in his price range.... But, he wants a deal!!! He wants a "deal" more than he wants the home. So he goes in with an offer $10K less than asking price.
The seller gets the offer, sighs and shakes his head, and says "okay, I'll play the game... let's just get this transaction done and move on." The seller counters by reducing another $3K. In another time and place, the buyer would counter once more by coming up $2K or $3K and with one more round they will meet in the middle, shake hands and everyone walks away happy.
But not this buyer... no sir. He wants to "beat the seller" so he refuses to budge on his price. It's not even about getting a 'good deal' anymore... the asking price was already a good deal. Now it's about winning!
The sad thing about this whole scenario is that nobody wins... not really. The seller still has a home to sell. The buyer still has to spend time and energy looking for a home to buy and the agents are left scratching their heads wondering what the heck's going on???? And all because of a couple thousand dollars.
We've actually seen buyers walk away from the perfect home over as little as $1,000! We're talking about a $300,000 investment in the right home for his family and he walks away over $1,000. Unbelievable!
So, what is more important to you? Are you looking for the best home for yourself and your family or are you just looking to win some "negotiation game"? Think about this... while you are busy trying to win a game, how much time, energy and money are you throwing away... yours and that of those assisting you and those on the other side of the table? What is your priority?