Negotiating a contract is tough
- and a prime reason to work through
a Realtor -
ORLANDO -- March 29, 2001 -- The Realtor’s
role is changing in many ways, but one strength inherent in the use of a
real estate pro is not -- the role of negotiator. A neutral third party
can often orchestrate a contractual compromise that independent buyers
and sellers cannot.
Realtors’ roles have changed thanks to the Internet and the way in
which consumers can list their homes and, as a buyer, find information
on local listings. Industry discussion has focused on the changes and
how to adapt to them, but the negotiating role of a real estate
practitioner has sometimes been lost in the shuffle, perhaps because
negotiating has no dollar value.
But haggling over price and contract terms causes significant stress for
homebuyers and sellers. Sellers traditionally want as much money as they
can get for their home; buyers want to pay as little as possible.
Allowing a third party -- a Realtor -- to handle the negotiations from a
stress-free, third party perspective can keep all parties moving
forward.
"Remember that the seller sees their house as a home, a place where
they raised children and maybe lived for 20 years. But the buyer sees a
house as a commodity," says Wade Browning, president of the Daytona
Beach Area Association of Realtors. When it comes to trying to reach a
compromise, "It's better to go through a third party that doesn't
have an emotional interest and can see more objectively."
Browning, owner of Tropical Realty Group in Ormond Beach, considers
negotiations a top reason to use Realtors, who are "trained in
negotiations and experts on property value."
It’s not just price. In a real estate contract, almost everything is
negotiable -- meaning consumers must balance an array of variables, such
as closing costs, closing dates, dates of moving in, repairs and other
items. Recently enacted legislation even allows people to negotiate the
price of title insurance -- another role that Realtors regularly
perform. A knowledgeable third party can explain these various details
as appropriate, and put them into perspective by explaining how they
affect the overall deal.
Sometimes, unique situations arise that require negotiation. Home
repairs, for example, can be paid for in several ways, depending on the
needs and finances of the buyer and seller. Realtors not only negotiate
an agreement between both parties, but they also have the industry
insight to pick a plan that fits each unique situation.
When negotiating a selling price, perhaps the Realtor’s most important
role is not in the negotiation itself, but as a counselor who explains
to buyers and sellers how the negotiating process works. An explanation
of the process -- and advice to not take seemingly unreasonable
counter-offers personally -- can set the stage for a successful home
sale.
"The key for either party is to try and step outside their own
shoes and look at it from the other side," says Browning.
Source: News-Journal Online, R.J. Kelly, March 29, 2001
© 2001 FLORIDA ASSOCIATION OF REALTORS
