DON’T Make Assumptions.
Real estate deals fall apart at the last minute (in the end) more often than you probably think—even after contracts have been drawn up and signed. So, don’t make the mistake of making any assumptions, financial or otherwise. Don’t assume that somehow “everything will work out,” and never, ever make an offer or accept a counteroffer for something that’s over your maximum budget. So, make sure you’re prepared financially, as mentioned above. You also don’t want to assume the buyer and listing agent will give you a good deal “just because.” You will leave yourself vulnerable and in a weak bargaining position if you come to the negotiating table empty-handed without having done the homework ahead of time (namely, reviewing comparable homes and researching the real estate market). Don’t look like a target. So, don’t make any assumptions.
DO Strategize on Your Offer.
Your first offer should be the best offer! One important piece of making your first offer a fantastic one is doing your reviews and research (“comps”) beforehand; however, it also involves strategizing with your agent on the amount you will be offering, which involves a significant amount of preparation and analysis. Rather than simply responding to the listing price, try to look at it from the perspective of using your own knowledge and research in arriving at your offer. The two aren’t necessarily related. I’ve mentioned the CMA (Comparative Market Analysis) before; you should have this done before making your first offer and ensuring it’s your best offer. Your real estate agent can do this for you. As defined by Investopedia, a CMA is “an examination of the prices at which similar properties in the same area recently sold. Real estate agents perform a Comparative Market Analysis for
152
Powered by FlippingBook