Buyer | Seller Tools

Helpful hints, tips, tricks and tools when you’re in the market, whether you’re a buyer or a seller…

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Buyer Tools:

~ 5 Common Buyer Myths You Need to Know About

• The longer the house is on the market, the more you can negotiate.

When a buyer asks, “ How long has this property been on the market?  They think 6 months means they can negotiate the price down. It more often means the seller  is stubbornly holding on to their price.

• The Sellers today are desperate.

Most aren’t. Always ask why the sellers are selling. It’s the key to finding how motivated and anxious they are. “I’m being transferred to Dallas” is very different answer than, “We’d like something bigger.” The first homeowner is hot to trot.

•  You can’t buy a home today with less than 20% down.

FHA Loans require 3.5% down, and you can even ask the seller to pay the closing costs.

Are you a Veteran?  The VA loan program is one of the best in the industry!

Conventional loans?  Yep – you can find them without the standard 20% down payment!

•  You need good credit to get a good loan.

Once again, the FHA to the rescue! They are happy to lend money to buyers with less-than-perfect credit.

•  You shouldn’t buy before prices have bottomed.

You can’t sharp-shoot the real estate market. Once you identify the “bottom,” prices have already moved up.

Source:  Barbara Corcoran

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Seller Tools:

~ 5 Common Seller Myths You Need to Know About

• Now’s the absolute worst time to sell.

Not necessarily.  It depends on where you live.  Many of the worst-hit markets are already beginning to turn around.  And, if you’re a homeowner who wants to trade up, the loss you’ll take on your current home will be more offset by the bargain you’ll get on the next one.

• Never respond to a low-ball bid.

All buyers today feel obligated to put in low-ball offers to see if the seller bites.  If you respond with a reasonable counteroffer, most buyers can be convinced to come up in price and make the deal work.

• The first offer is never the best offer.

I’ve seen this time and time again…  Most sellers believe that it’s smart to hold out for something better.  But, four times out of five, the first offer is the best you’ll ever see.

• I can always reduce my price later.

Sellers often price their home high for a few weeks just to test the market.  However, buyers shop by price bracket, and if your house is in the wrong one, you’ll just help sell everyone else’s homes, while yours sits there, overpriced.  And, reducing your price later in small increments puts you in the position to chasing the tide as it goes out – also known as “chasing a down market.”

• Before you refinance, shop around.

You can if you want, but you’ll usually get the best deal from your current lender.  And, you’ll be able to better negotiate your closing costs.

Source:  Barbara Corcoran

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