All posts by Katie McCartney

The Goodwill Factor in Negotiation

The Goodwill Factor in Negotiation

Real Estate negotiation (depending on the people involved) should be more about the Goodwill factor that will bring about something you will most likely need at a very critical moment of the transaction.  Negotiation doesn’t end after the purchase contract signed, unless you have waived the contingencies.

goodwill (noun):  the favor or advantage that a business has acquired especially through its brand and its good reputation.

Mirriam-Webster Collegiate Dictionary Eleventh Addition

I especially like this definition of goodwill because it is the essence of what I am trying to convey in negotiation.   When you negotiate, you are factoring in advantages seen and unseen.  There are concessions you can make that would help in your favor if something else totally does not go your way.  It’s about winning the war not necessarily winning that specific battle.  Judge what your need or want is against a factor that is coming down the pike.  Like knowing that you desire an earlier closing over getting the radon mitigated.

Being a pain to the other side just to prove a point usually does not make for a smooth transaction.  It only causes hurt feelings and makes the transaction more difficult in the end.

Also, negotiation is learning to piece out information at the right moment in time.  It is not always necessary to reveal a piece of information unless they other side specifically asks for it.

Example:  An agent asks the listing agent if getting an offer in by a certain time of the day is fine.  They assume there is a multiple offer situation and overbids on the home.  The listing agent had no obligation to say that there aren’t any offers.  The selling agent (buyer’s agent) should have asked if there are offers on the table.

Knowing what to ask, when to ask it and/or what to say and when to say it is more important in the goodwill factor in the negotiation process than who put the beat down over the other side.

Is This the Best Time To Sell Your Home?

Is This the Best Time To Sell Your Home?

Yes, more than ever before.  There is a pent up demand that the dam is going to burst.  Look at Figure A.  It is much more costly to rent than it has been historically; yet, it is more affordable than it has been historical to buy a home.

Figure A

Do you think interest rates are going to skyrocket and leave people behind in the dust?  Look at Figure B.  Doesn’t look that way to me.  Yes, there is going to be gradual rate increasing; however, none that is going to scare potential buyers a way in the next six months.  Quite on the contrary, buyers are going to be wanting to buy to avoid the rate increases.

Figure B

It is all about timing.  If you have been waiting to move, the next couple of ears is the time.  Otherwise, the market will shift again to a more neutral setting.   If you are on the fence, time to get off.  Get your house ready to sell and MOVE!

Home Prices Setting Records – Caveat

Home Prices Setting Records – Caveat

Ladies and Gentleman, I am a data geek.  Looking deeper into the stats is what gives me my cheap thrills.  Data is a historical look into the market.  Historical data is relevant because it can predict future events especially if you start seeing the patterns that they create.

Let’s start with Columbus Realtor’s latest Central Ohio Housing Report – June 2017.  This report gives a general overview of the 5 counties that comprise of Central Ohio.  It’s a good general report to give you a general bead of the Central Ohio’s health.

However, let’s take this a bit further and analyze on specific community – Worthington, Ohio.  The information below is going to focus on Single Family Homes in the Worthington school district; however, this can be recreated for any location within Central Ohio, which includes homes in Franklin, Delaware, Union, Madison, Pickaway, Fairfield, and Licking Counties.

Worthington Schools Under 30 Cumulative Days on the Market

In the last 6 months as of July 14, 2017, there are 324 homes that sold Under 30 Cumulative Days on Market and of them 219 sold over original list price, and 256 where listed under $350k.

Click on the Image for a Larger View.

 

Worthington Schools Over 30 Cumulative Days on the Market

The over 30 cumulative Days on the market has a much different story to tell.  66 of the homes sold for less than the original asking price.  Yikes!  That to me says did not price the home well.  Majority of them were on the market once and then re-listed, which goes to show that pricing it right the first time is crucial.  Finally, 46 of the homes were under $350k.

Click on the Image for a Larger View

Summary

Pretty simple as a seller, you will sit in this market if you don’t price it right.  If you think you can get more, you cannot.  You will sit, wait, and receive less in the end.  As for the higher, end market being more difficult to sell, debunked in Worthington Schools.  68 homes that sold above $350k sold in under 30 days and 20 took over 30 days.