Negotiating Purchase Price

Once you’ve researched and evaluated properties within your price range, You may be ready to begin placing your offers on a property. The listed price is usually a suggestion when purchasing a house or an automobile. Although the cost of cars unusually decreases, this is only sometimes the case with Real Estate. In 2020, clients were coming in and viewing properties and placing bids of $20,000 and $50,000 over the listed price and were not getting the property. Then, there are times when the asking price is based on the comparative market and needs to reflect recent economic changes. The house has sat on the market for months without movement. Hoses, in particular, are affected by the laws of supply and demand. You must have facts in front of you and make an informed decision whenever you attempt to purchase or list a property. It may be difficult to master control of your emotions; however, approach the situation logically. 

I am a licensed Real Estate broker CAL DRE # 02131799 and a General Contractor CA License B 696662. I sell houses and do remodels and additions to homes. As a child, I always wanted a home but never received one. It is likely the reason for my love of construction. A house is a place to eat, clean yourself, and sleep: A home is a place to relax, to be, to know you’re secure, and to love and be loved. Homes are not for sale; houses are. As a contractor, I live to help people transform their houses into homes. As a real estate broker, I help my clients purchase and sell the house. It is a challenging task. 

My clients must instruct me as to what they desire:

“I want to sell my house for $675,000.”

What is the time frame we’re looking at?

Do you own your home outright, and would you consider carrying some paper?

Price is not always the determining factor when purchasing a house, although it is most likely necessary.

Sometimes, time is essential. A close in 30 days is viewed as more attractive than a 90-day close. An all-cash offer still can have a seller take note. An offer that releases the seller from all contingencies is viewed favorably. A purchase with a letter of preapproval for a particular loan amount is preferred over someone casually stopping by your open house. 

Some agents list their units below fair market value to establish a bidding war. Others prefer to list them near the top of what the comparatives support. Purchasing a house or selling a home needs a strategy. It is helpful when the clients stay consistent with the one you two have worked out. Some agents like to take you to properties that have just sold to try and make you feel the urgency of placing your offers. Some want to tell or send you listings and have you drive past to see if you are interested and come in to help close the deal.

As a broker, I look at the property offered and establish a fair market value. I look at many factors. I drive by the property in the morning, early afternoon, after work is out, and late at night. You may be shocked to learn how much neighborhoods change during the day. When purchasing a car, a house, or anything else, it is essential not to let it become emotional because the power remains with the one who can walk away.

Note: Images on this blog site are from a free source or taken by the author. No image or group of photos is intended to represent the people the author serves. The author does not care about Race (that is a politically correct term that he does not like because we are all of the same Race, the Human Race. He prefers the term ethnicity), color, religion, sex, gender, marital status, disability, genetic information, national origin, source of income, Veteran or military status, ancestry, citizenship, primary language or immigration status. He is a service provider for all people. We will all rise together when we band together and help one another. Joseph Erwin is a Real Estate Broker, DRE # O2131799, and a CA general contractor # B 696662. He’s a member of the CRMLS and The East Valley Association of Realtors located in the Inland Empire region of Southern California.