The Sedona Real Estate market is finally teetering on a seller’s negotiation advantage, but as I stated in my blog, “Sedona Real Estate Advantage Goes To Seller“, don’t underestimate the negotiation power of either side when it comes to buying or selling Sedona real estate.
1) Remove Emotional Attachment – Advantage can go either way…
The most important concept you can remember for the buyer is, do not get attached to the home or property you are trying to buy. For the seller, you need to detach yourself from your property. Emotional attachment can be a big hinderance when trying to get a leg up on the deal. In many cases this attachment can cloud good business sense. If you find yourself wavering, speak to your Realtor®. They should be able to help ground you and get you over that hurdle. Remember, this is a business transaction. The party who feels they have the least to lose (and least amount of attachment) usually has the advantage.
2) Cash Is King – Advantage Buyer
Not all buyers can afford to plop down the full price of a home they are trying to buy, but those who can, create a built-in advantage for purchasing their dream property. Now with the Dodd-Frank Act coming into play, there could be more delays in the closing process. Having cash helps to remove some of the obstacles that a borrower may have to endure. A prospective cash buyer may be able to entice a seller to accept the terms of their offer, as the transaction may move more quickly.
3) Low Market Inventory – Advantage Seller
When the inventory is low, a seller usually benefits because there are less properties for the buyer to choose from. In fact, this may lead to multiple offers because other buyers may be just as interested in purchasing the property. This may drive the price of the property up as well.
4) Removing Contingencies – Advantage Buyer
This is a double edged sword. By removing contingencies, the offer becomes more attractive to the seller. However, there is a huge caveat that goes along with this. For instance, some buyers choose to eliminate the inspection period – that could come back to bite you in the end. For the buyer, it could be more difficult to exit the contract (during what would have been the inspection period). The inspection period is when you usually find problems that may make you think twice about continuing with the contract. One example is, if there was a problem with the roof, structure or foundation of the home, this could be a major expense to repair or replace. It could also affect the value of the property. Rescinding the right to an inspection period could hamper the buyer’s ability to exit the transaction.
If you are considering removing contingencies, proceed with caution.
5) Keep A Poker Face During Negotiations and Up To Closing
There is an old expression, “hold your cards close to your vest”.
Back in the Old West, there were brawls because someone caught a glimpse of the cards that another player was holding. When someone knows the cards you are holding, they can adjust their strategy to take advantage of that weakness.
Master Certified Negotiation Expert
Sheri Sperry is a Master Certified Negotiation Expert. Sheri is one of only 3 Sedona MCNE trained Realtors in Sedona. There are 40,000 real estate agents in Arizona and only around 100 trained MCNE agents in the entire state. If you need information on the negotiation process Sheri can help.