Wednesday, April 22, 2009

Real Estate is Like Playing Poker

Want to make a real estate deal? Then, you must be ready to play poker. So let’s shuffle the cards and get ready to play, shall we?

Before we sit down at the table, you MUST know the stakes and players involved. Playing blindly spells a losing strategy. I suggest you do a little homework prior to game night.

Jack and Jean Simpson are selling. They’ve owned several homes and know the real estate game quite well. Joe Johnson, the Seller’s Agent, is a veteran bringing years of experience to the table.

The Simpsons have listed their prize home for $399,000. It’s been on the market for 8 months. You’ve toured the home with your Buyer’s agent twice already and are ready to make an offer. You’ve noticed that your dream home, owned by the Simpsons, needs some minor repair work and could use some kitchen and bathroom renovations as well.

Furthermore, you-- Mr. and Mrs. Buyer, are excited about the prospects of owning this home. It isn’t your first home, but the jump up from your starter digs to the Simpson situation, is a big leap.

Your own agent has run comparable properties. Comps are: Similar in type and size to the subject property-Sold in the past year-Within a prescribed radius from the subject.

The most recent 3 comps have an average actual sale price of about $350,000. Your buyer’s agent suggests making an offer 15% below asking or $339,000.

What other information should Mr. And Mrs. Buyer have before sitting at the poker (read negotiation) table? If you can’t think of any other information you need prior to playing, call me. The information noted above is not enough to get the best deal.

As your buyer’s agent, I’ll save you a bundle be being fully prepared to engage the Simpsons and their representative at the table. If you’re going to play for high stakes, why not hire Paladin?

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