module 05 / offers and negotiations
Checklist: Evaluate the Buyer-Client’s Negotiating Position THE MARKET
Questions
Is it a buyers’ or sellers’ market? ___________________________________________ Is it a high or low point of a seasonal market? _____________________________ How high are the interest rates? __________________________________________ What are the general economic conditions? ______________________________
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Checklist
Buyers’ market with many affordable properties available Low point of seasonal cycle Weakening economy/high unemployment High interest rates (lower number of buyers) Sellers’ market with few affordable properties available
Possible tax issues—increase; senior exemption; non-owner occupied; new. Sex offender registration information given - website, police department Google address of property prior to contract No change to credit between contract and closing
THE PROPERTY Questions
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How does the property compare to similar ones in the area? How long has it been on the market? Have there been other offers that fell through? Are there offers pending? Does the property need repair or remodeling?
Checklist
Many similar properties in the area and on the market New home construction weakens seller’s position on existing homes On market for a long time Property needs repairs or remodeling Distressed sale—REO, foreclosure, short sale Few similar properties in the area and on the market Unique property Lack of new construction increases competition for existing homes Pending offers Rapid property value appreciation
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