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Page 25 MAY 2016 • VOLUME 20 • ISSUE 12
Negotiating the best deal for clients egotiating is a unique skill, best left for those who are confident and assertive. For REALTORS, making offers and countering, turning down bids and asking for more money are some of the most important work you will do. To find out how to get the best deal for buyers and sellers, Realty Line spoke with three Austin real estate professionals.
people are bidding like crazy and they can’t afford it.” Kelly Freeman, an agent at Twelve Rivers Realty, says that she’s had buyers offer $20,000 above the asking price because they just had to have that property, but then the appraisal comes in. If the buyer doesn’t have the cash to cover the difference, not only do they have to back out of the deal they became emotionally attached to, but it’s the agent who has to break the news to the other side.
Don’t be emotional
Get to know your team
By Riki Markowitz
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Candy Cooke, a REALTOR Negotiations class instructor with ABoR, suggests discussing with buyers ways that emotions can interfere with their end goal. “In this market,
Of course, the reason there is a rule about emotions is because it’s human nature to act on feelings. Tim Landy, an agent with Twelve Rivers Realty, tries to stay in front of emotional bidding by getting to know his team early in the process. During his conversation with the lender, he finds out if his client is preapproved, how much they can afford, and if there are any problems that can come up before closing. Arming himself with this knowledge can be an advantage in a bidding war and help a buyer stand out from the crowd, which does not necessarily mean offering more money.
When competing against several bidders, consider different options In Austin, properties can go under contract after just 48 hours. Some homes don’t even make it onto the MLS. One strategy Landy uses when a client has their heart set on a property – along with four or five other potential buyers – is to go straight to the seller’s agent with the asking price. “At the bare minimum, the seller already has been offered their full asking price and are also getting bids over list price.” There’s no point in throwing out a low offer and negotiating up from there, he says. “Most sellers are not going to respond to that because they don’t have to.” Rather than encouraging his clients to throw more money on the table, first Landy asks the seller’s agent about special considerations. Does the family have to be out of the house by a certain date? “If everyone else is coming in with a 30 or 45-day close, I’ll ask
the lender if they can do a 21-day close.”
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Or do they need some leeway on their move-out date? If Landy can get his client to offer $0 lease-back, that’s another way to stand out. For some sellers, agreeing on certain concessions is more important than walking away with an extra $5,000. “Not every buyer has to offer more money,” says Landry.
Don’t be uncompromising When negotiations get difficult, it’s easy to resort to being pushy and combative. Landy says there’s another mentality that works best for him: “I say, ‘Let’s find a way to make it work.’” Negotiating Tips for Sellers There’s the belief that in Austin’s low-inventory market, sellers have all the say. Certainly they’re calling many of the shots, but buyers do have some control, says Cooke. “There are 32 different ways for buyers to get out of contract and get their money back. There are just three on the seller’s side.”
Don’t be emotional, II The idea of a big payday can be seductive. But with so many opportunities for buyers to change their mind while still in contract, snatching the highest offer is not always the best option. “It can be quite the opposite,” says Freeman. “You have to study all the
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Wednesday, May 18th AYREP: May Happy Hour Sherlock's Baker St. Pub and Grill 5:30 to 7:30 p.m. Wednesday, May 19th Drees Custom Homes: Dusty Boot Preview & Party -Deer Haven in Georgetown - 11 a.m. to 1 p.m. Friday, May 20th HBA/ABoR: Find Your FAN Factor: 10 Attributes of a FANatical Salesperson Norris Conference Center - 9 to 11 a.m. Friday, May 24th Clearwater Ranch: Phase 2 Grand Opening REALTOR Preview Clearwater Ranch - 4 to 6 p.m. Wednesday, May 25th HBA Lakeway/Bee Cave Chapter Social Frogpad Showroom - 5 to 6:30 p.m. Wednesday, June 1st WCREALTORS: Battle of the Burgers Brushy Creek Lake Park - 3:30 to 6:00 p.m. Wednesday, June 8th HBA: Gayle Berkbigler Golf Classic Flintrock Falls - 11 a.m. to 6:00 p.m. Thursday, July 21st AMBA: TopGolf Networking Event TopGolf - 4 to 7 p.m. More at www.myRealtyLine.com