Five Rules to Negotiate Like a Pro

September 24, 2012 By Leave a Comment

I was ten years old when the Saturn cars were introduced. All the excitement was over how you didn’t negotiate the price, it was the “no haggle” brand. Even thought I was just a kid, it sounded like a rotten deal to me and all the fun was taken out of buying a big ticket item. Who’d want a car not worth fighting for?

My appreciation and love for negotiation naturally lead me to real estate. We negotiate everything, everywhere, constantly. It’s not always about price. There is a lot to negotiate: timeline, repairs, and all the other terms and conditions going into a real estate transaction.

Whether you are buying a home or anything else, here are rules to negotiate confidently and have things going your way.

Rule #1 Don’t Make It Personal. Some people take negotiations over a house so personally, as if the other party is insulting them. That’s just silly. You have to keep in mind what it is you are negotiating and your goals for the outcome. Remember, the other side’s messages are not about you. Each party just wants the best outcome for themselves, not necessarily the worse outcome for you.

Rule #2 Never Assume. Don’t assume anything about the other party. Buyers assume things about the sellers such as when they need to move. Many buyers tell me things such as, “It seems the sellers don’t need to move quickly, so let’s make a higher offer to motivate them.” Or an even better one I hear is, “They bought it for $X five years ago so they won’t take less than $X+7.” Those are both assumptions. I don’t know anything about a sellers and how much money they’ll take until I have a reaction to an offer.

Rule #3 Be Fearless. Don’t fear a negative reaction from a seller. Your negotiations should reflect your needs and goals. It’s imperative you first know your goals: how much you are willing to pay and what it is you will and will not do to get it. If there is a time to make decisions and stick to them, it’s when negotiating for a home. What I love about negotiations is that it gives us clarity on what it is we really want, and how much we are willing to pay for it.such as, “It seems the sellers don’t need to move quickly, so let’s make a higher offer to motivate them.” Or an even better one I hear is, “They bought it for $X five years ago so they won’t take less than $X+7.” Those are both assumptions. I don’t know anything about a sellers and how much money they’ll take until I have a reaction to an offer.

Rule #4 Show Respect and Kindness. You can be fearless and you can take a stand, but always show respect and kindness to the other side of the negotiation table. Understanding the reasoning for their demands will go a long way. Simply learning what’s important to them humanizes the whole interaction. Yielding on something in order to accommodate a priority for the other side will enable you to ask for something in return. For example, can you move the closing date for two weeks to accommodate the seller’s wedding plans?

Rule #5 Some Compromise is Necessary. This rules ties in to Rule #4, and together they are called, Don’t Be an Ass. Find an area on which you are willing to compromise. Sometimes a small compromise will help you get almost everything you want. Maybe a little bit more money, or a bit less fighting over inspection items? I’m all in favor of getting the most out of every deal, but sometimes the most includes goodwill. Furthermore, don’t expect to pay less than market price. Sure there are bargains, just don’t try and squeeze water out of a rock, and expect the rock to be okay with that.

Negotiations are an important part of life, and avoiding them will cost you. Saturn shut down operations in 2009 and gave General Motors a lot of grief. The “no haggling” policy had others realizing they are getting a pretty rotten deal. Saturn slogan was “A Different Kind of Car Company,” overlooking the fact that without negotiations we do not achieve satisfaction in our choice.

So haggle on, and follow the rules outlined to negotiate like a pro.

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Common Mistakes in Pricing Your Home in Rising Market

September 10, 2012 By Leave a Comment

 

In a real estate market with rising prices, pricing your home can be a bit tricky. I meet some home sellers who think it is easier to price a home in a rising market, but that’s not necessarily true. The risk of mispricing is always the same, and leaving thousands of dollars on the table is at stake.

Prices are just starting to inch up around the country, but as usual, Boston real estate is a bit ahead in this regard. Many of Boston’s neighborhoods and immediate suburbs are enjoying visibly higher home prices for some months. And the vibrant market has encouraged many who’ve been waiting to sell.

So how much is your home worth now? In pricing your home, ensure you receive top dollar by avoiding the following common mistakes.

Looking at sold home prices online. Sold home prices are a great place to start your research on your home’s value, but there are some issues. Although the information is public and generally accurate, it can be misleading when using the mapping features of Zillow or Trulia. A house nearby of similar size could have sold for a vastly different price than what your home is worth. Unless you know a house well, it is dangerous to compare it to yours.

Furthermore, don’t confuse recent sold home prices with the “Zestimates” on Zillow. Those are generally useless in Newton and Brookline, and many parts of Boston. I’ve written about my reservations about Zillow as a data source before in my article, “No More Zestimates for Newton and Brookline.”

Pricing too high. You may think pricing a bit high in a rising market is not a big deal, but remember, we are just coming off a pretty ugly real estate slump. Market is just starting to perk-up, buyers still hold some cards. First-time home buyers are moving the market, and they are buying on a tight budget. There is less negotiation, so do not assume that if you price high, you’re leaving “room to negotiate.” Instead, you’re leaving room to sit on market and wait for an inevitable price reduction.

Pricing too low. Some real estate agents will tell you there is no danger in under pricing a home because there will be multiple offers, and you’ll get the full value of the home as buyers bid up the price. Bologna. Agents say this because a cheaper house is easier to sell. There is a strategy involved in multiple-offer situations, and it involves some thought.

Generating a multiple offer situation is never a guarantee, and can be risky when you are depending on the multiple offers to bring you the full value of the home. Here’s a post I wrote about the dangers of under pricing. A neighbor of one of my properties under-priced for a quick sale, and after the bidding war, the condo sold for about 10K short of top dollar.

Asking the wrong agent. Real estate is not neurology, but it does require expertise. This expertise is labor intensive, including looking at homes, meeting with buyers, writing offers, learning the market, reading the news, etc. Ask the wrong agent, and you’ll get the wrong answer. Speak with local agents who seem to know what they are talking about, preferably more than one if you have reservations. A competent agent will be able to give you a price or a price range, with some precision and confidence, and back it up with recent sales and inside knowledge.

Input from a professional will always be the best place for you to price your home. Make sure you don’t get caught up in the mistakes outlined, and you’ll sell your home for top dollar in no time.

If you are curious about how much your home is worth, click here.

 

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Buying Your First Home This Fall? Your First Three Must-Do Tasks

September 4, 2012 By 2 Comments

Boston real estate agents are making their way back from the Cape getting ready to put up some For Sale signs. The Fall real estate market is here. According to Realtors, it officially begins the day after Labor Day. The general expectation is for a vibrant, busy and tight real estate market in Brookline, Boston and Newton in the coming months.

First time home buyers lead the market, and more them are taking the plunge. Going about it correctly will make the difference between a good or bad investment, a positive or negative experience. If you are considering making this fall market your opportunity to buy, here are your three must-do tasks. Do these three things, and you’ll be well positioned in the busy market.

  1. Hire a buyer’s agent. There are many ways to find an buyer’s agent, and trust me; there are a lot of us. You can ask a friend for a recommendation, meet agents at open houses or call on some advertising. But whatever you do, hire someone after a thorough interview and once you’ve made a genuine connection. It is more important you work with an agent you feel understands your needs and respects your pace, rather than your friends’ recommendation for his cousin’s neighbor’s mom.
  2. Get Pre-Approved! A pre-qualification does not count. Speak with a human mortgage broker (rather than simple online forms), and learn what you need to do to finance a home. Once you speak with a professional and knowledgeable mortgage broker, you’ll be much wiser. Furthermore, having a pre-approval in hand is a solid foundation for making offers. Don’t guess how much you can spend and hope to get everything done later. It doesn’t work.
  3. Prepare for a big change in your life. I’ve worked with many first time home buyers over the past ten years. Buying your first home is a time of great change. And although it is a change for the better, the task can be daunting. Break it down to small pieces. Focus on each stage of the home buying process, such as looking at homes, or inspection. If you’ve done task one and two, the whole process will feel manageable, and you will have a team working with you to make it all happen.

If you are ready to take advantage of low mortgage rates and a rising real estate market, buying your first home can prove a terrific investment. Take a deep breath, and say hello to the Boston real estate.

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The Risks of an Exclusive Buyer Agency Contract

August 21, 2012 By Leave a Comment

Finally buyer agency contracts are becoming more popular in Greater Boston. As a first time home buyer in Boston you should be especially interested in signing a buyer agency contract. Boston, Newton, and Brookline Realtors are usually happy to discuss the contract and demonstrate how it protects you.

The goal of a buyer agency contract is to cement a relationship between broker and buyer for a set period of time. The broker is obligated to meet fiduciary responsibilities to the buyer, which essential means the buyer’s interests and instructions always trump the broker’s interests and advice.

Like in any contract, there are risks and benefits to both the agent and the buyer. Let’s clarify what they are so you can judge if you need the buyer agency when you buy a home.

Risks to Buyer

To the buyer, there are two main risks. First, the buyer is obligated to work exclusively with the buyer agent for a set period of time, as outlined in the contract. But what happens after a couple of months the agent proves unhelpful or a bad match?

This risk can mostly be averted by interviewing agents and asking for referrals. Some agents happily work with you for a bit to ensure there is a good match between broker and buyer.

The second risk to the home buyer is the possibility of an added cost. But, that’s not really the case – it only seems like a risk. The prices of homes almost always include the buyer agent’s commission. Most For-Sale-By-Owner homes pay a buyer agency commission.

What about a listing with a discount commission. Say you are a first time home buyer in Boston and you are looking at small condos. Some of them may have a commission paid to buyer’s agent of 2%, and your contract is for 2.5%. Where is the missing 0.5% coming from?

You can build the added commission into the offer price and it can still come out of the seller’s final price. Alternatively, you can pay the balance at the closing yourself remembering sellers who discount commission usually negotiate badly – meaning, you probably have a decent deal on your hands!

Risks to Broker

The broker also takes risks in these contracts. First, just as the buyers, we may not want to spend six or twelve months committed to you. Sometimes agents don’t like their clients, and fat chance we’ll get referrals from a client’s accountant / attorney / financial planner / parents to learn if you are reasonable.

But the guarantee of getting paid has brokers working a bit harder for clients and more committed to the process regardless of how unreasonable.

The other risk we have, and the biggest of all risks, is somehow failing to meet all the obligations spelled out in the contract. We can’t miss a house! This is especially daunting in a very tight market where everything sells so quickly.

Every obligation and task on the contract is a potential lawsuit if not done correctly. The buyer agency contract carries a huge responsibility for the broker. This is not a bad thing, but it is important to point out.

The Benefits

Signing a contract awards the buyer benefits of fiduciary obligation and commitment from the broker. You have someone working for you, no need to ponder the agent’s agenda. As a serious buyer you want to hire a buyer agent so you are guaranteed a level of service, which you deserve.

The broker benefits from the guaranteed income if he should successfully sell a home. It is very frustrating for agents to work for buyers only to find they walked into an open house and bought a home direct from the listing agent.

We don’t get paid if you don’t buy, but if you do buy, we want to get paid. The buyer agency contract guarantees the buyer receives services in return. This begs the buyers to consider their agents more carefully, which is a very good thing.

Buyers often mistakenly think the buyer agency contract was developed to protect agents, when the buyer is the one who has most to gain.

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Should I Renovate My Home or Sell It?

August 13, 2012 By Leave a Comment

One of the most popular question I get these days is “Should I renovate my home or sell it.” Everyone’s situation is different so everyone comes to a different conclusion. It’s a loaded question because it involves many variables and a big undertaking whatever you choose.

Speak to your real estate broker about your options. First, here are the questions you can ask yourself to come a bit closer to what’s best for you.

Is my home in my ideal current location?

If you are living in a neighborhood you love and in which you want to stay, that’s one point on the side of renovation. But what if you always really wanted to live on the other side of town, or a different town altogether? With very low mortgage rates, the timing is perfect to consider an area that seemed a bit out of reach some years ago.

No matter what you do to your current house, it will stay put, you will have the same view out the windows, same noise from the road, same cherry tree in the yard.

To what extent do I have to renovate this house to be ideal?

Is a bathroom renovation and kitchen update enough or are you ready to strip the house to the studs and put in dormers? If you considering an extensive renovation, I hope you like a project. If you are not easily annoyed by people working power tools in your home at 7AM, by all means, learn more about renovating.

What would my return on investment be on the renovation?

The cost of the renovation will be key to figuring out the financial cost and benefit of moving versus renovating. If you spend money on a renovation with only a 50% return if you should sell the home, then the outlay is a waste. For example, in a 1800 square foot Colonial a $35,000 renovation on kitchen and bath can add $50,000 to the property’s value. A $90,000 renovation on the same kitchen and bath may only be worth an added $65,000. It depends on the house, the location, and the renovation.

What will I be able to afford if I sell and buy a new home?

If you can add $100,000 to the price you get for your home, you may surprise at what you can afford! Actually, you may be completely discouraged. Obviously, it depends on the market and where you are looking to move. Learn the value of your home, get a pre-approval, and spend some time at open houses to learn if what you can spend brings you closer to your ideal.

What do I want to do?

This may seem like an obvious question but it amazes me how many people don’t ask themselves what they really want. Much of my work as a real estate agent is to uncover the true needs and desires of clients, because they are not sure.

If you love the idea of renovating and staying where you are, then the financial consideration are secondary. If you are ready to move and feel you want to be elsewhere, then focus on finding something better, rather than wasting time with a renovation that will leave you dissatisfied.

The variables to consider when asking yourself if to move or renovate are both financial and emotional. The key is to find the balance where one does not so outweigh the other you will be left with remorse. Your first step is to get all the facts: you home’s value, its value once renovated, and what homes are available in your price range.

Contact me if you have any questions about any of these issues, and we’ll put together a plan that works around your true needs and wants.

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The First Seven Steps Your Realtor Must Take

August 7, 2012 By Leave a Comment

You’ve signed the listing agreement, now what?

Between the signing of the listing agreement and the second week your home is on the market, there is an enormous amount of work for the listing agent. Done right, completing these tasks lays a solid foundation for a successful marketing plan for your home.

Here are the first seven things a listing broker must do once a new listing is signed.

  1. Paperwork. There is lots of paperwork. Some paperwork is mandated by the Commonwealth, some of it is by the company. The agent has to have all of the paperwork complete and in order. I even fill out paperwork for the sign installation, but some agents in very small firms will install the sign. If your agent is not highly organized and complete, it may reflect on a sloppy company or other sloppy work.
  2. Preparing the home for sale. It is you duty to prepare the home to look it’s best. But it is your agent’s duty to be helpful. Your listing agent should spend time with you and either advice or referring you to a staging professional. It is vital you take your agent’s advice or hire a staging professional. The home you live in should not look like the home you sell.
  3. Photographs. The listing agent’s third order of business is to arrange to take photographs of the property. Preparing the home for sale and great photos is the groundwork for a successful marketing campaign. Photographs, and any other media such as floor plans and home tour, are the materials necessary to market the home online and to attract the right buyers.
  4. Calendar. You should know when the agent plans to hold open houses and establish a schedule for showings. Some people refuse to show homes on Saturdays or need a day or two notice. Your agent must know your limitations and work with them. You should know what happens when, including any promotions, mailings, office tours, broker open houses, etc.
  5. MLS. With photos in hand, the agent is ready to enter the home into Multiple Listing Service. If done right, this takes some time. A complete MLS entry is the goal, including room measurements, building and area information, public records data, description, related documents, etc. The MLS entry of your home must look perfect the first moment it is published. Once it’s “live”, it is send to anyone in the system looking for a home like yours. People tend to skip homes with incomplete information and bad pictures. The very first days of the listing are most important to your marketing plan!
  6. Online Promotion. MLS and some brokerage firms syndicate listings all over the web. Listings will feed into websites such as Homes.com, Zillow, Trulia, Realtor.com, etc. These syndication are the lifeblood of the online marketing campaign. When 88% of home buyers searched online for homes last year, this is a big piece of successfully marketing a property. Tech savvy agents who understand the importance of online marketing pay for their own syndication feeds which override any company or MLS feed. This gives the listing agent more control over what the audience sees and allows buyers to directly contact the listing agent, rather than the office.
  7. Direct Mail. A “just listed” card to a radius around your home should be sent the first week the home goes on market. Just listed cards peak neighbors’ interest and they spread the word about your home in their beloved neighborhood. This is also a perfect marketing opportunity for a neighbor considering a new home who want to stay in the area.

There is so much to do the first few weeks of a listing. After that, the work load is lessened until the offers come. Still, you should expect updates on activity and a regular marketing effort that continues through the life of the listing.

To receive a copy of my Home Selling Plan, click here.

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Choosing the Best Real Estate App

August 2, 2012 By Leave a Comment

Finding best real estate app for buying a home in MA.

Real estate apps have put the real estate market in the hands of the buyers, making searching for homes easier than ever. You can now see what is available at anytime, anywhere, learn a great deal about the homes, and have open house times at your finger tips.

After trying several apps on my Android, I’m reviewing the pros and cons of each so you can choose the one best suited for your needs.

Zillow. Zillow is a huge name in online real estate resources. I appreciate some of the information they gather and redistributed, but I’ve never been a big fan. Mostly because their “Zestimates” are so ridiculous.

Zillow’s app gives a lot of options and great flexibility in creating searches. But make sure you have the “Type” of home checked correctly. The default is to show homes for sale, for rent, sold, and estimated values all on the same map if you are not careful. For me, this app is too busy, and has lots of ads popping up.

I’m sure Zillow is proud of its estimated value on each home on the map – but the Zestimates are notoriously inaccurate and misleading. It has my West Roxbury home estimated at $327,321, and the square footage at 1,351. Wrong wrong wrong.

Pros: flexibility, ability to draw your area of interest, sold homes.

Cons: busy layout, pop-up ads, too much information, pop-up survey.

Trulia. The Trulia app, like their website, is clean and easy to navigate. It also has a keyword search and lists for sale, for rent, and sold properties separately – which makes sense. Looking at listing detail is a breeze and Tulia makes it simple to contact the listing agent with questions. You can email, save or share any listing easily.

The Trulia app has ads. I almost bought some ad space until I realized that I’ve never responded to a mobile app advertisement. Since advertising just started a couple months ago, you may be spared the pop-downs in most areas, but not for long.

The agent you will see both on the Zillow and Trulia ads are NOT the listing agents. You will find the listing agent or office on listing detail page.

Note there are two Trulia apps, one is Trulia for Agents, which I use, but makes no sense for non-agents.

Pros: easy to navigate, keyword search.

Cons: ads, no ability to draw area of interest.

Realtor. Realtor.com’s app is my favorite one, which I use constantly. It feels it was build around buyer needs and who knows buyers better than the National Association of Realtors? It has the ability to search for homes easily, with as wide or as narrow criteria as you like. You can save searches or save individual homes.

This real estate app allows you to save your friends’ and agent’s email addresses in the settings. You can then send listings of interest in just two clicks. It has been easier for me to plan my open house tours with this app, and I love that it saves all my recently viewed homes.

Search options are for homes for sale, or rent, open houses, recent sales, saved searches, recent searches or area highlight – where you draw the area of interest. Despite the many options, the interface is intuitive and does not feel busy or overwhelming.

Another feature I’ve found nowhere else is “scout.” When using the area highlighter on a map, the “scout” option gives you basic sales averages around a particular neighborhood.

Pros: easy to navigate, area highlighter and scout feature, saves your agent’s info, directions and street view, organized and complete.

Cons: I don’t know if they’ll have ads, I’ve seen none yet.

Raveis App. This is the William Raveis’ Real Estate App. Because I’m a Raveis agent, I’m partial. I used this app the most before the Realtor app, but I still open it regularly. Like most things Raveis does, the app is clean, easy to navigate, and intuitive. When you open a listing, you can have a street view, navigation, nearby amenities, and community info. The amenities information includes area restaurants, schools, supermarket, hospitals and public transportation options!

You can start your mortgage pre-approval and insurance quote directly from the app – and I highly recommend both the Raveis insurance and mortgage companies. The Raveis logo and phone number is the only promotion you’ll find. There are no pop-up ads and no distractions from your home search.

Pros: easy to navigate, community information, area amenities information (!!!), no ads, easy to share.

Cons: no ability to draw your area of interest, no recent sales information, connects you with the Raveis call center, not a local agent.

Redfin: I learned about the Redfin real estate app from my client Matt last week. Redfin has property history on each listings, which no other app I’ve tried provides. Property history is interesting but more important once you are ready to make an offer. Regardless, if you are curious about recent history of properties, use this app.

The Redfin app only serves specific metropolitan areas, so don’t automatically assume this will work for you. It has worked well in Greater Boston so far.

Remember this app is company specific, so everywhere you look you are encouraged, with big yellow buttons, to sign-up for more information. Slightly annoying. A positive feature is your ability to add your own photo to the listing information, so you can better remember what you saw.

The “nearby open houses” feature has a defined circle of open houses and I haven’t figured out how to change it. I can’t say I enjoy using the app, as the emphasis is more about the company than the buyer’s needs.

Pros: property history, no pop-up ads (so far)

Cons: lacking information, less flexible than the other apps, not fun – doesn’t inspire exploration like the others.

I love that real estate data has been made transparent and readily available to the buyers. Now buyer agents are rewarded for guidance through a complex process rather than hording information. I hope I saved you some time in choosing the right real estate app for you. Have fun exploring!

If you find other interesting features or more real estate apps worth considering, write me.

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Today’s Home Selling: Listing Agents as SEO Expert

July 26, 2012 By Leave a Comment

Selling a home used to be characterized by three activities: putting up a yard sign, hosting an open house, and advertising in the paper. Some agents did this extremely well. If selling your home was that simple, no wonder so many people chose to sell homes by themselves.

These days, selling your home is a lot more complex and requires a new level of sophistication. Listing agents need to be search engine optimizing (SEO) experts. Most agents don’t understand this yet. Brookline Realtors, Newton MA real estate agents, and Boston real estate in general often lag behind in these matters.

According to the National Association of Realtors, 88% of buyers use the internet in their home search, and I bet that number is even higher in the Greater Boston Area. Where else would you begin any search for anything? When you are finding answers to your queries, it means someone has taken the time to put content together and optimize for you to find.

Home searches are not just beginning online, but they continue online as well. Buyers don’t stop their search as they get closer to finding their home. Photos, floor plans, videos and information is reviewed and used to make shorter lists of homes to see. Online home profiles are used to compare and contrast homes and to make final decisions as well.

If this is how buyers choose to consume information, it is the listing brokers’ responsibility to feed that information accordingly. A successful online marketing strategy for a home has two functions. First, to be found by as many targeted buyers as possible. To be easily found is great, but quality trumps quantity. I would rather have five visitors to the home who are qualified, ready to buy, and are the right fit for the home than 25 visitors who are browsing and curious.

The second function of a successful online marketing strategy for a home is appeal. Your home needs to look amazing online. Professional photos, floor plans, complete information, and a video all help. More than ever the preparation for a home sale is important so the photographs and videos inspire the buyer to schedule an appointment.

Incomplete information may have been acceptable in the days when the buyer’s agent was the gatekeeper of information, but no more. Any listing agent who’s marketing plan focuses on open houses, yard signs, and advertising is missing the point, and a good chunk of good buyers for your home.

How did you find your home? How long ago was that?

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Stupid Mistakes Home Buyers Make

June 26, 2012 By Leave a Comment

There are many multiple-offer situations these days, especially in Newton and Brighton. I heard of a buyer who put bids on four properties before giving-up and renting. Despite the stories, I still believe the biggest mistakes buyers make are rooted in the fear of losing a property.

Fear based decisions are usually wrong. In buying real estate, fear results in heart ache and overpaying. When a buyer fears losing a home she will offer too much money, overlook important inspection items, or not pay attention to the condominium documents or a building’s financial condition.

A careless broker will allow for this without regard. Even if the initial offer is for a reasonable price, the negotiations will be weak resulting in accommodating the seller excessively. Negotiating can be stressful and emotional, the best time to lose a sense of reality and get overly attached to a property.

Then comes inspection, where expensive issues come up. In fear of losing the property, the buyer will accept the home as it is or under negotiate. For major issues, the buyer should bring in professionals who can quote necessary repairs. A buyer’s agent understanding fiduciary responsibility will encourage this, and encourage the buyer to disregard a disgruntled seller.

A nervous buyer may skim the purchase and sale contract, and not request an explanation of the parts from the attorney. Buyers must not be shy about asking the attorney to take the time to review the pieces of this 7-14 page contract. All remaining contingencies and the buyer’s pre-closing responsibilities are to be thoroughly understood.

Sometime between 24 to 1 hour before the closing there will be a walk-through the property to ensure it was left in broom-clean condition and any inspection issues were properly fixed. If you think this is simply a formality, think again! My own walk-through was a disaster, with the condo left a mess and still needing to have items removed. A few of my buyers found the property in unacceptable condition before closing.

There are ways to deal with this problem, too. Money paid back to buyer or held back in escrow are two options. The buyer has the right to demand seller pay for the property to be vacated and cleaned, regardless of how desirable the property and how many offers competed for it.

So don’t fear losing a property. You’ll be a much better negotiator if you remember this important truth: There will be another home.

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Five Things Buyers Should Never Say During a Showing

June 19, 2012 By Leave a Comment

There are some things a buyer should not tell a listing agent (agent representing the seller). A good buyer’s agent will coach you a little as to what to say and not to say during a showing. If you are unrepresented, it is more difficult to avoid the trap of having a long winded conversation with an inquisitive listing broker. With a buyer’s broker representing you during the showing, you are more likely to be left alone or the listing agent may not even be there (ideal).

But for showings with the listing agent present, (unfortunately the majority of home showing appointment in Boston, Brookline and Newton), here are the top things you should never ever say that will weaken your negotiating for home price.

  1. Don’t tell the listing agent what other homes you are considering. “We just came from 12 Blueberry Lane and we’re going to 43 Cranberry Drive next.” NO! This is as good as telling the listing agent your price range and much of what your needs and wants. Furthermore, you make it easier for her to compare and contrast the properties, which you should do on your own, with your broker. You are setting yourself up for a sales pitch you chose to avoid when hiring a buyer’s agent.
  2. Do not share any financial information. This may seem obvious but you’d be surprised how much information you are willing to give up when someone simply asks. It’s human nature. Even if you are an all cash buyer, shush! Pre-approved with 30% down, shush! Still in the process of the pre-approval, double shush! Your agent and mortgage broker work hard to keep all this information confidential, please do the same.
  3. Do not talk about your price range. That is a wonderful way to reduce your negotiation leverage. Your price range represents what you believe you can afford, and if the listing broker knows you can afford more than you offer, it is easier to squeeze a little bit more out of you. The negotiation will be about affordability rather than value.
  4. Don’t say you love the house, or even appear as much. The best negotiation card a buyer has is the ability to walk away from home. If you go gaga for a home and make it known, the listing broker will know you want it and you are likely to pay more.
  5. Do not discuss the timing of your move. This is another negotiation card, so don’t give it up. First you want to know the seller’s plan in order to figure out if you can accommodate it – and probably save thousands. Inflexibility is worth money – and the greater the inflexibility, the more money the opposite side of the transaction saves. If you have very rigid plans, especially if you have another home on the market, keep it to yourself until you know the seller’s plans.

When you go to a showing with a listing broker present, treat it as the first step to negotiation, because it is. Don’t share your personal information or excitement about a property. And don’t be offended if your astute buyer’s agent interrupts you mid-sentence when you are talking to the listing agent. She’s saving you serious money!

(If you are in the early stages of searching for a buyer’s agent, check out my post for William Raveis Real Estate’s blog, Five Questions to Ask a Buyer’s Agent Before You Hire“).

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