Having the right person “champion” for your real estate cause is extremely important in today’s market. After all, there are only 1.7 months supply of inventory compared to 6 months in a balanced market, and the average home is getting 4.8 offers per sale.
You see, in the Middle Ages, it was a custom to have a person appoint a “champion” to fight for them to keep their homestead. The idea of trial by combat did of course end in the 15th or 16th centuries, but the practice of “fighting” or speaking in one’s behalf continues even to this day.
Some examples: Lawyers will take up the cause of their client to win justice for them. Professional athletes are recruited for their abilities to help their team become victorious. Craftsmen of every type imaginable are in high demand because of their finished product.
The objective of a seller or buyer are different. In many cases, they are opposing in nature. Sellers believe that they should get the most money for their home while minimizing expenses and avoiding any possible issues that might cause a delay. Buyers want to be treated as fairly as possible, and to have that opportunity to purchase a home of their choice, plus have the protections of normal contingencies for things like mortgage approval and inspections.
Normally, there are two real estate agents involved in every single sale. Of course there can be legal agency distinctions, but it is commonly felt by both parties that the agent on their side of the transaction is “championing” their cause. It is natural to want your champion to be the most capable person available.
No matter which side of the fence you might be on – one thing that agents need in today’s market is one important skill – and that skill is negotiations. Every single part of the contract is a negotiation – from the price to whether it’s cash or a mortgage to earnest money to inspections.
The buyer simply wants to negotiate the best terms possible with the seller – and they are quite dependent on the real estate agent to work for them to get them. And, of course, the home inspector is hired by the buyer to determine the condition of the home, and will ask the seller to make any necessary repairs.
An appraiser is hired by the lender, and determines the value of the home so that the loan will be secured by the property. Recent sales are used as comparables, but they trail the market which becomes a challenge in rapidly appreciating markets, especially, when there are multiple offers.
Currently, multiple offers are very much the norm. So, how do you handle multiple offers based on both the buyer’s and seller’s perspectives? More than likely legal and ethical procedures will come into play, and those must be followed. However, a real estate agent’s experience may also contribute to the favorable outcome.
A skilled and experienced negotiator knows and understands that every transaction is different. Dealing with individuals, families, their needs and their emotions are what make every real estate transaction unique. The role of the third-party negotiator can be invaluable to the success of the transaction based on not only their experience but the juxtaposition to the principals and their objectivity of trying to reach a compromise.
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