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Penney’s Pointers

 

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Penney’s Pointers

Showings, Offers and Negotiations

 Showings:  All showings will be scheduled through the Aspen Snowmass showings desk.  Typically, you will hear directly from either Penney or Laura, but sometimes it will be the person in charge of the showings desk at our main office.  If humanely possible (and appropriate) either Penney or Laura will accompany the showings.

                Showing feedback will be given to you with a few days of the showing.  In my experience, showing feedback within the first 24-hours is not as meaningful as it is if the buyer and the broker have a few days to sort out the properties they have seen and prioritize accordingly.

The objective in obtaining feedback is to overcome objections.  Therefore, I do not ask showing brokers to fill out a form or send an email response.  I prefer to speak with them directly; thus giving the opportunity to overcome an objection.  You will hear all the positives and the negatives … and we will address what can be done about them together.

First offer:  If the property is priced correctly, the first offer is often the best offer.  If it is received within the first weeks of the listing, it means the pricing is competitive.  Not that the price is too low.  The job of the real estate broker is to represent the value of the property accurately, based on objective criteria.  For a seller, this means gauging the property correctly at the time of listing.  For the buyer, this means the ability to gauge the property prior to submitting an offer.

Highest offer:  If an offer is not received within the initial phase of the listing period, low offers (or perhaps no offers) will be submitted until there’s a price reduction.  The initial phase of a listing period in a resort market may be determined by the season in which it is listed.  Some properties are a better sale in the winter; some are better in the summer.  In my view, all offers submitted in writing should be countered.  If the offer is not countered, nothing will happen and no negotiations will take place.

Negotiations:  When a negotiation begins, remember to focus on the goal.  Do not get caught up in small details (like the mirror or outdoor furniture).  Using the principles of reciprocity and objective criteria keep the process moving along.  Avoid “drawing a line in the sand”.  Give-and-take allows for a deal to be made and a closing to occur.

Communication:  Communication is the key to any successful negotiation.  If a negotiation is stalled, information is lacking to one or both of the properties.  As long as information is being exchanged and communication remains healthy, the opportunity exists to influence the outcome or to change tactics.

 Splitting-the-difference:  Splitting-the-difference works if based on objective criteria. The problem with the splitting-the-difference is each side has a tendency to keep track of how much (or how many times) each party came up or came down.  The justification for making a move becomes something other than reaching a deal at market value.  Therefore, I try to avoid it until the last move in a negotiation.

Possibilities:  Most residential transactions are complex.  If at all possible, explore the objectives of the various parties.  It shows respect and understanding.  Consider all possibilities.  If all the possibilities are laid out initially, accepting some and rejecting others is easier and more likely. 

Negotiation Styles:  Each person (including buyers, sellers, lawyers and real estate brokers) has their own negotiating style.  To be successful, one must pay attention and listen carefully.  Listen to what is said as well as how it is communicated.  To be understood, you may have to adapt your style of negotiation to accommodate the person with whom you are negotiating.

Pressure tactics do not work.  The negotiations become an endurance game with either the buyer or seller giving up because they have given away more than they feel they were entitled to.  At the first opportunity to negate the agreement or renegotiate, they will do so.

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